Hospitals Turn to Credit Cards to Collect Unpaid Bills

Look, all the hospitals want is their money.  Towards that end, they’re looking at ways to allow patients expanded offerings that let them use credit cards to pay for care.

Hospitals are feeling the pinch of bad debt as more and more Americans find themselves unable to afford health insurance.  2007 doesn’t look like it’s going to be any better for the healthcare industry, either.

What makes the credit card option so attractive for hospitals is that any unpaid bills are paid by the lender, eliminating the risk for the hospitals.

UnitedHealth Group Inc., the biggest U.S. health insurer by market capitalization, is expanding a pilot credit card project in Texas for its own employees and those of Tenet.

The program’s main stumbling block is convincing employees to sign up for automatic payroll deductions.  Consumers must agree to have payments deducted from their paychecks if they fall behind on their credit card payments.

"There is a philosophical hurdle the employees need to overcome … with the concept that the cost of their health-care services will be automatically withdrawn from their paycheck," Tenet spokesman Steven Campanini said in a Reuters article.