Medical debt has a strange and storied history in America. Stretching back to colonial times, physicians and patients alike have grappled with its harsh realities. In recent years, hospitals have resorted to selling medical debt to third parties, who then aggressively pursue patients. In today’s episode, medical historian Luke Messac, MD, PhD, guides us through the past and present landscape of medical debt, examining perspectives from patients, providers, hospitals, and governments. We delve into a form of indentured servitude in the name of debt clearance, the birth of nonprofit hospitals, a pivotal shift in the 1980s, feasibility of operating healthcare under free market principles, medical economics in the 1600s, hospitals suing patients, and the emergence of medical debt as its own thriving industry.💡 Check out our Free Resources specifically designed to address pain points in medical practice💡Guest Bio: Luke Messac MD, PHD emergency physician and medical historian whose research focuses on health care's history and political economy. Luke is an attending physician at Brigham and Women’s Hospital, an Instructor in Emergency Medicine at Harvard Medical School, and the author of two books, No More to Spend: Neglect and the Construction of Scarcity in Malawi's History of Health Care and most recently, Your Money or Your Life: Debt Collection in American Medicine. We Discuss:Hospitals suing patients over debtThe Service Credit Program | Indentured servitude in the name of debt clearanceNonprofit hospitals were born out of the almshouse tradition, where charity care was part of the missionThe 1980s were a turning point for medical debt in the United StatesWith cuts in government medical spending, hospitals cut costs by limiting charity care and aggressively pursuing unpaid debtsWhy healthcare cannot operate in a pure free marketHospitals used to refuse care to patients and the courts supported itPatient dumping and the rise of EMTALACollecting money from patients has been an issue for hundreds of yearsIn the 1600s, doctors could be arrested for charging too muchDebtor's prisonDoes suing patients to recover medical debt improve a hospital's bottom line?In the early 2000s, Yale New Haven Hospital put liens and foreclosing on patients' homes as part of a debt collection strategyMedical debt collection has now become a thriving industryHow third-party medical debt collectors operateRIP Medical Debt buys and forgives medical debtIs buying and forgiving medical debt better or just forgiving it upfront?Dollar For is a nonprofit focused on helping patients navigate financial assistance programsSome hospitals are making financial assistance easier to accessState legislation is starting to address medical debt collectionNational approaches to medical debtMedical debt is prevalent around the world, but the US stands apart among wealthy countriesThe consequence of copaysPaul Farmer and caring for the destitute sick. The jungle hospital that's carrying out Paul Farmer's vision in GuatemalaRudolf Virchow - Physicians are the natural attorneys for the poorMentioned in this episode:Awake + Aware Bend May 5-7, 2025 | Our in person live event Ready to reset, recharge, and level up?
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