Editors Note: This article is part of our Medical Bankruptcy in America series. Each case is drawn from publicly filed federal bankruptcy records. Identifying details about individuals have been removed to protect privacy. The financial information and creditor listings referenced are documented in court filings.
We publish these cases to examine the role medical debt plays in personal bankruptcy and to assess accountability where federally supported healthcare programs are involved.
He is an electrician in Virginia.
He works.
He supports children.
He pays rent.
He does not own a home.
He does not have retirement savings.
He did not have a financial cushion.
When he filed Chapter 7, he had less than $5,000 in total assets.
He had more than $92,000 in debt.
A significant portion came from one episode of emergency medical care.
Among his largest debts:
The emergency providers are located on the campus of TriCities Hospital, a participant in the federal 340B Drug Pricing Program.
The 340B program allows hospitals to purchase outpatient drugs at steep discounts — often far below market rates.
The program was designed to help vulnerable patients.
But this patient ended up in bankruptcy court.
He brought home just over $3,200 per month.
His monthly expenses were nearly $3,900.
Every month, he was short.
Then came a $20,000 hospital bill.
When you are already operating in the red, there is no way to absorb that.
Collections begin.
Credit collapses.
Wages can be garnished.
Borrowing fills the gap.
The spiral tightens.
Chapter 7 becomes the only exit.
If a hospital receives federal drug discounts meant to stretch resources and support patients…
Why are patients still going bankrupt?
Patients are rarely told:
This bankruptcy filing does not show a patient discount.
It shows liquidation.
This is not an isolated case.
We are reviewing bankruptcy filings across multiple states.
The pattern is consistent:
Working adults.
Emergency care.
Five-figure 340B hospital bills.
Minimal assets.
Chapter 7.
If federally supported hospitals are benefiting from drug pricing programs while patients are entering bankruptcy, accountability is no longer optional.
It is overdue.