Hospital Bad Debt and Medical Credit Cards

A leveraged buyout is in the works for the Hospital Corporation of America, a giant for-profit hospital operator.  The stated reasons for HCA’s disappointing stock performance in recent years depend on the news story, but at least one national news report has highlighted uncollected patient bills as a major culprit. Surely this is too simplistic an explanation, but the existence of significant bad debt owed by patients to for-profit hospitals makes one wonder why medical providers haven't been more successful in encouraging patients to use third-party credit (e.g., credit cards) to finance the self-pay portion of their care. Apparently, various credit providers and accounts receivable management businesses have had similar thoughts.  As can be seen here and here and here, credit products now are being marketed specifically for medical expenses to both patients and providers.  The real growth in medical credit will flow from the rise of health savings accounts that offer credit components.  These medical credit products aren't likely to transform the for-profit hospital industry, but, depending on their terms, could have a significant effect on household finances.