Medical Bankruptcy & Nonprofit Hospitals

Medical Bankruptcy in America

Across the country, families facing serious illness are also facing financial collapse. Patients Rising is documenting these stories to better understand how hospital billing practices, insurance barriers, and healthcare policy contribute to medical debt.

Medical Bankruptcy in America (1240 x 1240 px)

Why We Are Documenting Medical Bankruptcy

Serious illness can change every part of a family’s life physically, emotionally, and financially. For many Americans, the financial consequences of illness become overwhelming.

Even patients with insurance often face high out-of-pocket costs, travel expenses, lost income, and complex medical billing systems. Over time, these pressures can push families into significant debt and, in some cases, bankruptcy.

Patients Rising is documenting medical bankruptcy stories from across the country, with particular attention to cases involving 340B-participating hospitals. Our work seeks to better understand how healthcare costs accumulate, how hospital billing and debt collection practices affect patients, and how policies intended to support vulnerable communities—including nonprofit hospital systems and safety-net programs like the 340B Drug Pricing Program—intersect with the financial realities facing patients and caregivers. The 340B program, designed to expand access to discounted medications for underserved populations, generates substantial revenue for participating hospitals; yet patient stories reveal instances where such hospitals remain major creditors in bankruptcy filings or pursue aggressive collection tactics.

Behind every bankruptcy filing is a human story. Our goal is to bring those stories to light so policymakers, healthcare leaders, and the public can better understand the real impact of medical debt—and evaluate whether programs like 340B are truly delivering on their promise to protect vulnerable patients.