Michigan Nonprofit Hospitals and Community Benefit Financial Assistance Challenges

In Michigan, nonprofit hospitals, including 116 facilities benefiting from over $1 billion in tax exemptions under the Affordable Care Act (ACA), are expected to provide community benefits aimed at making healthcare more accessible. However, data and patient advocacy indicate that many hospitals may not fully inform patients about available financial assistance programs, resulting in significant out-of-pocket medical expenses.

For example, Henry Ford Health System collected over $16 million from patients in 2022 who qualified for community benefit aid but may not have been fully informed about these options. Patient advocates argue for greater transparency and communication about financial assistance, highlighting that many patients leave hospitals unaware of the discounts or aid they could receive, even when eligible under criteria based on federal poverty guidelines and sliding-scale discounts up to 400% of the poverty level.

The case of Laura Pintor, who underwent emergency treatment at Henry Ford Health for severe brain bleeding, exemplifies these challenges; despite qualifying for aid under the system, her family faced substantial bills and only partially mitigated their costs through fundraising. Henry Ford Health maintains that it integrates financial counseling within its care services and communicates about assistance through multiple channels including billing statements, digital platforms, and direct outreach. The story underscores ongoing concerns in the nonprofit healthcare sector about compliance with community benefit obligations and effective patient communication to mitigate medical debt burdens.

Experts call for systemic reforms to enhance patient awareness and access to financial aid, which has implications for healthcare providers, payers, regulators, and policymakers focused on regulatory compliance and financial risk management in the nonprofit hospital sector.