Question

Explain the future of healthcare bad debt.

Answer 1

Healthcare industry is one of the biggest industry in USA. Each and every person needs healthcare facilities. Demand for healthcare services is increasing as the population is increasing. In the recent times, cost of healthcare has increased drastically and the major reasons are economy, unemployment and companies are passing the burden of cost of insurance premiums and other medical facilities on the employees. Employees are paying out of their pockets.

Currently the total bad debts amount is $50 Billion in a year in whole country. Hospitals are carrying heavy costs because they are not able to get payment from patients. Some uninsured patients are not able to afford the hospital bills due to this, bad debts are increasing. On account of heavy bad debts, hospitals are laying off the employees and non profit hospitals have got bankrupt.

Conclusion- Hospitals need to seek the strategies to get rid of this problem. They should start pre payment process. Hospitals should write off the bad debt every year.