Hero Background

Hospital financial assistance and debt collection policies

A NATIONAL DATA SET

Medical debt affects as many as 100 million Americans, contributing to financial harm and worse health. Hospitals can alleviate this debt or exacerbate it, depending on how they provide free and discounted care, and how aggressively they collect outstanding medical bills. 

The Lown Institute compiled and reviewed data from the financial assistance and collections policies of 2,500 hospitals across the United States, to better understand how these policies differ across hospital type and location. In most states, hospitals set their own policies around who is eligible for free or discounted care and the actions they may take to collect debt, which leads to considerable variation among hospitals.

Press release | Methodology

Key Takeaways

  • Many middle-class people may qualify for free or discounted care and not know it. Most hospitals offer discounted care for families making under 400% of federal guidelines, about $100,000 for a family of three.
  • The most common income threshold for free care is 200% of federal guidelines, about $50,000 for a family of three.
  • Free care thresholds vary widely, from 100% of federal guidelines ($25,000 for a family of three) to 600% ($150,000).
  • Similar types of hospitals in the same cities can have very different policies. For example, in New York City, the income threshold for free care varied from 200% of federal guidelines at NewYork-Presbyterian Hospital to 600% at Tisch Hospital.
  • Most hospitals (59%) allow at least one extraordinary collection action, like wage garnishments, selling debt to a third party, or denying non-emergency care.

Explore the data

The chart below contains financial assistance and collection policy information from 2,500 hospitals nationwide. Data was collected from hospital websites from June 2024-April 2025 and confirmed via email with hospitals when possible. Data will continue to be updated on an ongoing basis.  

Understanding the data

If the “Free Care” column reads “200” that means the hospital’s income threshold for a full discount on care is at 200% of federal guidelines, about $50,000 for a family of three.

If the “Discounted Care” column reads “400” that means the hospital’s income threshold for a partial discount on care is at 400% of federal guidelines, about $100,000 for a family of three.

“Legal Actions” indicates whether or not a hospital’s collection policy allows the hospital to take legal actions against patients for unpaid medical debt, such as lawsuits, wage garnishments, or property liens.

DOWNLOAD: Hospital Financial Assistance, Billing and Collections Data

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Terms of Use*
This data has been collected from policies posted on hospital websites, and, where indicated, confirmed through communications directly with a hospital representative. Data collection is ongoing and updates and corrections will be made on a schedule to be determined. Third parties should confirm data with hospitals before sharing a specific hospital’s policies as fact. Use of this data is limited to personal and academic noncommercial purposes and must cite the Lown Institute as the source. To inquire about data use other than personal or academic, contact us at info@lowninstitute.org. The standard Lown Institute terms of use also apply.

What is financial assistance?

Most hospitals offer free or discounted care for patients who cannot afford to pay. This is known as “financial assistance” or “charity care.” Hospitals usually have a written policy that outlines eligibility standards based on income, family size, bill amount, insurance status, and other factors. Private nonprofit hospitals are required to make their financial assistance policy widely available.

FINDINGS

  • Most hospitals in our study (84%) have a financial assistance policy available online. 
  • Private nonprofit hospitals (99%) are much more likely than public (57%) or for-profit hospitals (49%) to have their financial assistance policy available online. 
  • The majority of private nonprofit (75%) and for-profit hospitals (74%) made their policies available in multiple languages, while only 43% of public hospitals had multiple languages available.

Who is eligible for financial assistance at U.S. hospitals? 

Free care

There are no federal minimum requirements for financial assistance eligibility, which gives hospitals considerable leeway to craft their own policy. This flexibility leads to considerable variation in free care eligibility levels across hospitals. 

FINDINGS

  • Among the hospitals in our study, 87% offer free care as part of their financial assistance policy.
  • The most common threshold for free care was 200% of federal guidelines (meaning that a family of three making about $50,900 would be eligible).* Fifty-two percent of hospitals offered free care for patients making 200-249% of federal guidelines. 
  • Among outlier hospitals were 207 hospitals that restrict free care to those making under 150% of federal guidelines and 60 hospitals that offer free care to those making 400% and above. 

*Some hospitals report their income eligibility based on the federal poverty guidelines (FPG) while others use federal poverty level (FPL). Alaska and Hawaii also have different FPG income levels than the contiguous US states. The differences between these thresholds are accounted for in our comparisons of median county income and income eligibility thresholds by family size. For simplicity, we use “federal guidelines” throughout this report to refer to either FPG or FPL-based income eligibility levels.

Discounted care

Hospitals generally provide discounted care for patients who do not qualify for free care. Discounted care means that a patient’s bill will be reduced, usually based on a flat discount or sliding scale.

FINDINGS

  • Among the hospitals in our study, 83% offer discounted care as part of their financial assistance policy.
  • The most common threshold for discounted care was 400% of federal guidelines (about $100,000 for a family of three). Fifty-two percent of hospitals offered discounted care for patients making 400-449% of federal guidelines.
  • Thresholds ranged from under 250% (124 hospitals) to 600% and above (70 hospitals). 

Restrictions on financial assistance

Some hospitals put additional restrictions on financial assistance aside from income: 

  • More than a third of hospitals (42%) limit financial assistance to those living in the state or local area, and 14% limit free care to uninsured patients. 
  • Private nonprofit hospitals were more likely to have a residency requirement (46%) and public hospitals were more likely to restrict free care to uninsured patients (20%).  
  • Some hospitals also exclude certain types of care from financial assistance, like birth control, infertility treatment, bariatric procedures, dental care, ambulance services, cardiac rehabilitation, transplant, vaccines, and physician services for emergency department, radiology, anesthesia, or pathology.

Media inquiries should be directed to Aaron Toleos, vice president of communications for the Lown Institute, at atoleos@lowninstitute.org.