North Carolina Hospital Company Forgives 11,500 People’s Medical Debts
Less than a week after NBC News exposed the aggressive debt collection practices of Atrium Health in North Carolina, the nonprofit company has announced a significant change in policy. Atrium Health, a hospital system based in North Carolina, had placed liens on the homes of former patients to collect on unpaid medical bills. However, in a surprising move, the company has decided to cancel these obligations and forgive the debts associated with them, benefiting approximately 11,500 individuals across North Carolina and five other states.
Advocate Health, the parent company of Atrium Health, stated that this decision to release the 11,500 liens was the next logical step following their 2022 resolution to cease filing lawsuits and property liens to recover patients’ medical debts. While the company declined NBC News’ request for an interview regarding the policy shift, the impact of this decision is undeniable.
Rebecca Cerese, a health policy advocate at the North Carolina Justice Center, a nonprofit organization dedicated to combating poverty in the state, expressed her pleasant surprise at Atrium Health’s decision. She emphasized the importance of individuals like Terry Belk, a Charlotte resident who became a focal point of NBC’s coverage on medical debt, for speaking out about these challenging situations. Cerese hopes that other hospitals will follow Atrium Health’s lead in alleviating the financial burden faced by patients dealing with illness or the loss of a loved one.
Terry Belk, whose story was featured in NBC’s coverage, had accumulated tens of thousands of dollars in medical bills that his insurance did not cover, both for his wife’s breast cancer treatment and his own prostate cancer diagnosis. Atrium Health had pursued Belk through legal means, including a deed of trust that allowed the company to receive $23,000 from the sale of his family home. However, Belk received a surprising phone call from an Atrium Health executive informing him that his debts would be forgiven, a direct result of the national attention brought by NBC News.
The issue of medical debt in the United States is widespread, with Americans owing a staggering $220 billion in unpaid medical bills. According to KFF, a nonprofit health policy research organization, South Dakota, Mississippi, and North Carolina are among the states with the highest rates of medical debt affecting their populations. The burden of medical debt has led to legal actions against patients, with North Carolina hospitals suing thousands of individuals and their families from 2017 to 2022 to recover outstanding debts.
In response to the escalating crisis of medical debt, North Carolina Governor Roy Cooper introduced a medical debt relief program in July that aimed to alleviate the financial strain on residents. While this initiative included forgiveness of medical debts for Medicaid beneficiaries dating back to 2014 and for individuals with incomes below 350% of the federal poverty level, many former patients like Terry Belk were still excluded from the program.
Advocate Health’s decision to release the 11,500 liens on people’s homes represents a significant step towards addressing the systemic issue of medical debt in the United States. The company has assured that they will prioritize the oldest cases first and work on resolving them individually over the coming months, in coordination with the respective courts in each jurisdiction.
The impact of Atrium Health’s decision to forgive the debts of 11,500 individuals cannot be understated. This act of compassion and understanding towards those facing financial hardship due to medical expenses sets a positive precedent for other healthcare providers across the country. As the nation grapples with the challenges of healthcare affordability and access, initiatives like these provide a glimmer of hope for individuals burdened by medical debt.
