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Healthcare Financial News - Bill to Require Illinois Hospitals to Provide More Free Care

Healthcare Financial News


Tuesday, January 24, 2006
Bill to Require Illinois Hospitals to Provide More Free Care

In an effort to get Illinois not-for-profit hospitals to deliver more charity care, Illinois Attorney General Lisa Madigan introduced legislation that mandates tax-exempt Illinois hospitals give away an amount of care equal to at least 8% of hospital operating costs. In an article in the Chicago Sun-Times, Madigan calls the current level of charity care—an average of 1% of hospital charges—“miniscule.” If passed, the law would require hospitals to provide free care for uninsured patients whose income is below 150% of the federal poverty limit and give discounts of 65% to 80% to those earning between 150% to 250% of the poverty limit. Rural and government hospitals would be exempt from the mandate. A separate piece of legislation calls for more consumer-friendly billing and collection procedures for all hospitals, including allowing patients to pay in installments and more limited use of collection agencies.

posted on 1/24/2006 12:00:00 PM (CST)  Permalink