Patients who needed financial assistance said nonprofit hospitals in Massachusetts didn't help them
There are 55 nonprofit hospitals in Massachusetts. Those hospitals receive tax benefits totaling more than $1.9 billion a year. In exchange for the tax breaks, the hospitals are required to provide financial assistance to patients who need it and give free care to the poor. But, some patients said they are in debt because they didn't get the help they were entitled to.
Tyler Verrier was rushed to UMass Memorial Medical Center in Worcester with an injured foot. "A block of wood had fallen on it," Verrier told the I-Team.
Owed around $5,000
Verrier had a long road to recovery, and said it was seven or eight months before he was back to functioning at a normal level. But getting well was not his only concern. With ongoing treatment and a limited income, Verrier was racking up thousands of dollars in medical bills. "I was panicked. At one point, I owed somewhere around $5,000," said Verrier.
Andrew Cohen is with Health Law Advocates and is Verrier's attorney. "He shouldn't have owed as much as he did. There are public programs that may be available to people, particularly people with lower incomes, even lower to lower-moderate incomes…and it's actually these hospitals' responsibility to let them know that they may be eligible to apply for these programs."
Nonprofit hospitals get tax exemptions
UMass Memorial Health Care is responsible to tell patients about the availability of financial assistance because it is a nonprofit, and gets nearly $152 million in tax exemptions per year, according to the Loan Institute.
"The tax benefits are incredibly valuable to these nonprofit hospitals and they really should be providing what we call community benefits, to benefit the community. And a very key community benefit that hospitals provide is charity care for their patients who can't afford their bills," said Cohen.
The I-Team asked UMass Memorial Health Care for an on-camera interview. Instead, they provided a statement:
"UMass Memorial Health is committed to ensuring patients are aware of available financial assistance options. All patient billing statements include information about the availability of financial assistance. Additionally, our Financial Assistance and Credit and Collection Policy, which can be found on each of our hospital websites, details our financial assistance programs, the application process, and our billing and collection procedures.
While UMass Memorial Health does not publicly comment on individual patient billing matters, we encourage patients with questions or concerns about their bill to contact our billing department at 1-800-225-8885 for assistance."
Verrier said almost every bill he received has "gone to collections. It has been treacherous. They are hounding me daily."
"The hospital didn't do all that it should do in terms of helping him," Cohen told the I-Team.
IRS records uncovered by WBZ-TV and the CBS News data team show Verrier is not alone. In 2021, UMass Memorial attempted to collected more than $6 million from patients who were eligible for financial assistance. It's a problem Health Law Advocates said is across the board.
"Every nonprofit hospital in the state where we have had clients experience similar problems," said Cohen.
The IRS is primarily responsible to oversee these hospitals to make sure they are following the law and meeting their obligations. But Cohen said, "ultimately, it's the patient that's caught in the middle."
Frustrating for Verrier who had some of his debt covered, but is still fighting. "As a nonprofit and a reputable hospital, I would expect better. I want my medical debt to be wiped clean, I feel like I'm entitled to that."
How to get help with medical debt
The IRS told CBS News that it reviews tax returns to ensure compliance with the law. If you have medical debt and believe you may qualify for financial assistance, here are links to some of the available programs in Massachusetts:
