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Group: Hospitals Should Publicize Payment Options

Posted on: Sunday, 17 July 2005, 15:00 CDT

Jul. 16--A local consumer advocacy group, saying poorer patients often are unaware of their payment options, wants hospitals to publicize their charity care policies so that fewer people are burdened with medical debts.

The Allegheny County chapter of the Association of Community Organizations for Reform Now, commonly called ACORN, will hold a North Side forum on medical debt next month to call attention to the issue.

The East Liberty-based group says 180 consumers that it expects to testify have debts that range from $200 to $9,000, but their low incomes prevent them from making payments . The consumers should have qualified for charity care, said Ruthisha Johnson, the local campaign's organizer, but they were not told about the hospitals' programs.

"We feel that it's a huge problem for the uninsured and underinsured," Johnson said. "We really want to work with the hospitals about how to get the word out."

Medical debt has been a sensitive issue for hospitals across the country since 2003, when consumer groups began questioning why low-income uninsured patients are asked to pay the full charge for their care when insurers pay discounted rates. In southwest Pennsylvania, for example, health plans pay about 35 cents for every dollar charged by hospitals.

The discrepancy also has been raised by a series of class-action lawsuits brought by low-income patients across the country. They argue that the billing practices of nonprofit hospitals call into question whether they are charities worthy of tax exemptions.

Hospitals have countered that they don't, in fact, collect many of these debts. They also contend that federal law prevented them from extending discounts to uninsured patients.

In February 2004, the government clarified that Medicare rules don't prohibit discounts for people who can't pay their bills. Following that ruling, hospitals across the country, including the University of Pittsburgh Medical Center, revised their policies.

UPMC's new policy, which is scheduled to be approved this month, will provide discounts to uninsured patients based on a formula that considers income and net assets, said Robert J. Cindrich, general counsel for UPMC.

The policy puts "severe limitations" on collection activities, Cindrich said.

What's more, UPMC will not place a lien on a patient's primary residence if it is the patient's sole real asset -- unless the value of the property clearly indicates an ability to assume significant financial obligations.

"We are doing the best we can to treat all people fairly and humanely without violating any federal or state laws," Cindrich said. "We actually collect only a small portion of our charges from the patient and will almost always accept a reasonable compromise based on his or her ability to pay."

Cindrich said that hospital staff currently is being trained about the financial aid policy, which will be publicized on UPMC's Web site and with signs and brochures throughout the health system.

He said hospital officials would be willing to participate in the ACORN forum. Organizers have invited hospital executives and City Council members to the event, scheduled for Aug. 18 at 7 p.m. at Allegheny Universalist Church, 416 W. North Ave.

For more information on the forum, call ACORN at 412 441-6551.

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Source: Pittsburgh Post-Gazette

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