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Hospital Bad Debt Statistics

In order for hospitals to properly serve patients and the community, they need to be in adequate  financial standing. Unfortunately, bad debt caused by uncompensated care continues to increase at health centers across the country. The COVID-19 global pandemic, complex changes to insurance, and economic downturn have made it even more difficult for healthcare providers to meet their bottom line.

The definition of bad debt was changed on December 15, 2017. See the Advisory Board’s summary of the change below:

“Under the old standard, some hospitals reported bad debt as the difference between the amount they billed their patients and the amount their patients ended up actually paying—even in instances when the hospital never expected to receive the entire amount billed. Under the new standard, hospitals are permitted to report bad debt only in instances when an adverse event, such as bankruptcy or loss of employment, prevents a patient from paying what the hospital, based on historical experience, expected to receive.”

As the pandemic continues and uncompensated care costs increase, it’s important for hospital executives to stay on top of the latest hospital bad debt statistics so they can understand the latest trends and steps to take to mitigate the costs.

The data listed below takes a deep dive into where the healthcare industry stands and what hospital execs should know about bad debt and finances. See below for the latest hospital bad debt statistics.

Hospital bad debt remains a problem across the United States. Streamlining your revenue cycle can help you collect claims and reduce uncompensated care. MedData’s revenue cycle services help hospitals increase cash flow by managing denied claims and collecting payments by finding patient payment options.

Hospital Bad Debt & COVID-19 Statistics

General Hospital Bad Debt Statistics