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Taxes and Hospital bills?

This was something I was just thinking about and questioned. Are not hospitals privately owned, and if they are, do they get federal funding for some reason? Prior to the health care bill being passed how does taxes pay for people's health care unless the hospital if receiving funding from the government, outside of state medical?

What I have always presumed happens is people don't pay their bills and their for the hospital has to eat those unpaid bills and in return raise cost to cover those unpaid bills, but that can happen rather someone has insurance or not, cause insurance doesn't always cover everything, just a percentage right? So anyway there are unpaid bills that the hospital has to eat, and therefore raises the cost of services. Which those who are using said services are really paying for the cost of those who are not paying their bills. So how are taxes being used to pay for these unpaid bills?

Answer Question

Asked by Anonymous at 2:31 AM on Apr. 17, 2010 in Politics & Current Events

Answers (4)
  • i think the hospital can write these "losses" off on their taxes and ultimately pay less taxes. that is only a guess!!! i really do not know.

    Answer by happy2bmom25 at 7:57 AM on Apr. 17, 2010

  • Not to mention that many times people do pay over time, they just make smaller payments. Just because it doesn't all get paid off at once doesn't mean that patients aren't paying their bills.


    Answer by Anonymous at 8:31 AM on Apr. 17, 2010

  • It's a myth that all hospitals get federal funding. I've worked for hospitals and they didn't get a penny in federal money. One eventually closed down because it was losing money.

    There are non-profit hospitals and they sometimes get some federal funding. There are also county hospitals that get funding from the county or state.

    The federal government does not pick up the tab at a hospital if people don't pay. I have no idea where that came from.

    Answer by mancosmomma at 10:06 AM on Apr. 17, 2010

  • "i think the hospital can write these "losses" off on their taxes"

    This is incorrect.

    If you don't collect the money, you don't pay taxes on it. Hospitals can write off the expenses they have incurred, but they cannot write off lost profits on their taxes. They can write it off their bookkeeping, which means taking it out of the accounts receivable, but not off their taxes.


    Answer by mancosmomma at 4:40 PM on Apr. 17, 2010

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