Senate Review Finds Problems at Charity Hospitals

Nonprofit hospitals are routinely overcharging or denying care to patients who cannot afford to pay for medical care, while the hospitals’ top executives enjoy generous perks, Senate Finance Committee investigators have found, according to a report in The Washington Post. The committee’s findings raise questions about whether the hospitals should continue to be eligible for tax exemptions.

Although many of the 10 hospitals in the 15-month review insist that they are offering free care or reduced prices for low-income patients, investigators say the hospitals are not informing patients about such assistance, leaving many of the poorest patients struggling to pay hefty hospital bills even though they would qualify for free or reduced-cost care. Investigators also found that while federal law requires charity care in exchange for tax-exempt status, the Internal Revenue Service rule is so vague that nonprofit hospitals have been able to offer only small amounts of free services with little real aid going to the poorest patients.

Rick Pollack, a spokesman for the American Hospital Association, which represents nonprofit and for-profit hospitals, disputed the committee’s conclusions. “We believe that America’s hospitals do more than virtually any other segment of society in serving the health-care needs of those who have no coverage,” he said.