Allina Health, a prominent nonprofit health system based in Minnesota, has announced a significant policy change. The organization has decided to terminate its practice of denying medical care to patients with outstanding bills of $4,500 or more. This policy reversal comes after the Minnesota attorney general’s office launched an investigation into the denial of care to patients with medical debts.
Previously, Allina Health’s hospitals only treated individuals in emergency rooms, while other services were withheld from patients with substantial outstanding bills. This included children and individuals with chronic illnesses such as diabetes and depression. These patients were unable to access further care until they fully paid off their debts.
Nonprofit hospitals like Allina Health receive substantial tax breaks in exchange for providing care to vulnerable members of their communities. However, an investigation conducted last year by The New York Times revealed that many nonprofits had deviated from their charitable missions, resulting in dire consequences for patients.
Allina Health’s recent policy change follows the attorney general’s investigation into the organization’s withholding of care from patients with debts. Keith Ellison, the attorney general of Minnesota, stated that there is growing agreement that for-profit and nonprofit hospitals behave similarly. Nonprofit hospitals, like Allina Health, benefited from tax breaks amounting to approximately $266 million in 2020. In return, these hospitals are required to offer free or reduced-cost care to low-income patients.
However, federal rules remain silent on the eligibility criteria for free healthcare for low-income patients. In 2020, Allina Health spent less than 0.5% of its expenses on charity care, significantly lower than the national average of around 2% for nonprofit hospitals.
The plight of patients burdened with medical debt is significant, with around 100 million Americans struggling with outstanding medical bills. These bills make up around half of all consumer debt in the country.
Hospitals have employed various aggressive tactics to collect debts from patients, including flooding local courts with lawsuits and garnishing wages or seizing tax refunds. But Allina Health’s policy took a particularly severe approach. A detailed document provided guidance to the health system’s staff on canceling appointments for patients with debts totaling $4,500 or more. The policy also instructed staff on how to lock patients’ electronic health records to prevent future appointments from being scheduled.
Allina Health initially defended its policy, emphasizing the efforts made to contact patients by phone and through repeated letters that included information about financial assistance options. However, the health system has reevaluated its position and recognized the need to provide financial assistance resources to patients through alternative means.
While Allina Health’s recent policy change is a step in the right direction, its doctors are actively pushing for additional reforms. Primary care physicians within the system have initiated efforts to form a union, with the aim of advocating for legislative changes that would prohibit withholding care from patients with outstanding bills. These physicians argue that denying medical care to children based on medical debt is unacceptable and unfair.
The state of Minnesota faces ongoing challenges in ensuring that nonprofit hospitals fulfill their obligations to the communities they serve. Stricter regulations and clearer guidelines are necessary to safeguard individuals from being denied essential medical care due to their financial circumstances. By holding nonprofit hospitals accountable, patients can receive the care they need without facing excessive financial burdens.
In conclusion, Allina Health’s decision to end its policy of denying medical care to patients with significant unpaid bills marks a positive change in the organization’s approach. However, further reforms and legislative actions are necessary to protect vulnerable individuals from being denied care based on their financial situations. As the state of Minnesota investigates nonprofit hospitals’ billing practices, clearer guidelines and increased transparency can help ensure equitable access to healthcare for all.
