When Nonprofit Hospitals Sue Their Poorest Patients

December 19, 2014

(NPR) – NPR and ProPublica have been investigating the increase in so-called “wage garnishment” by credit card and other companies. For this story, we looked specifically at nonprofit hospitals and found the practice widespread in five different states around the country. Nonprofit hospitals get huge tax breaks — they are considered charities and therefore don’t pay federal or state income tax or local property tax. In exchange, they are obligated to provide financial assistance or “charity care” to lower-income patients.