In January 2008, Susan Cromartie was admitted to Community Hospitalâ??s emergency room for treatment of an acute kidney stone. On admission, Susan gave the hospital her name and address and then was rushed to treatment. She was released 8 hours later. The hospital sent Susan a bill ($15,000, using the hospitalâ??s â??customary chargesâ?) and tried to contact her a half-dozen times over the next 3 months regarding payment, but Susan never responded. At the end of three months, the hospital turned Susanâ??s account over to a debt collection agency. That agency tracked down Susan, and found that she was unemployed and behind in her rent on a small apartment. The debt collection agency advised the hospital that the emergency room bill was uncollectible under the circumstances, and the hospitalâ??s accounting department wrote off the bill. The cost of Susanâ??s services to the hospital (using an average cost methodology, including overhead) was $8000.
"Do you think the hospital provided â??charity careâ? to Susan? If so, in what amount and how does this affect the free market?"
1. Explanation of the relationship between charity care and Susan
2. Analysis of the amount of care provided to Susan and the impact on the free market(If any)
1.The relationship between charity care and Susan is the point of the hospital having the power to write the bill of to their charity program. As you read in the case study the amount of the bill was $15,000 but the hospital wrote the bill off for $8,000. In most instances where there is a charity care program the hospital also has a self-pay discount. The discount coincides with the ...
The solution is comprised of information that answers the below questions regarding the case study on charity care.