Financial Times FT.com

US hospitals’ bad debts add up to healthcare woe

By Christopher Bowe in New York

Published: August 6 2007 03:00 | Last updated: August 6 2007 03:00

Bad debts at hospitals from unpaid patient bills are triggering deep and growing problems within the US healthcare system as up-front costs are increasingly passed on to consumers and growing numbers of people are opting out of health insurance.

Bad debts for hospitals in 2004 were estimated to be between $26bn and $30bn (€22bn, £15bn), and currently represent about 12 per cent of hospitals’ revenue and rising.

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