Took on a medical bill or a collectorMedical bills$6,500
Sued Over a Hospital Bill That Charity Care May Have Covered
An uninsured nursing student was sued over a $6,500 bill from a nonprofit hospital whose policy suggests she may have qualified for charity care. CBS News explains why eligible patients often never apply.
Video by CBS Evening NewsPublished April 24, 2025Breakdown updated September 15, 2026
Key moments
“Hospitals sue patients over medical debt even though they qualified for relief” by CBS Evening News. We didn't make this video; it loads from YouTube when you press play.
Where Alexis started
About six years before the report, Alexis was working two jobs to put herself through nursing school, with no health insurance, when a night in the hospital for trouble breathing left her with a bill of about $6,500. She'd gone to the University of Tennessee Medical Center in Knoxville, a nonprofit hospital whose policy, as reported, says a single person earning less than $52,000 a year may qualify for financial assistance. She says no one ever told her.
What Alexis did
- 1
She received a bill of about $6,500 and didn't have the money to pay it.
- 2
The hospital never told her she might be eligible for financial assistance, and she didn't know charity care existed.
- 3
After she missed payments and the hospital couldn't reach her, its collection agency sued her.
- 4
A judge ordered deductions from her paychecks to go toward the debt.
- 5
Six years after the hospital stay, she is still paying $150 a month.
What you can learn from it
Check for charity care before anything else
Alexis didn't know financial assistance existed. The CFPB suggests asking the hospital for its financial assistance policy, which by law must be provided free of charge and explain how to apply.
The names can be confusing
An attorney with the nonprofit Dollar For says many patients think 'financial assistance' or 'charity care' means a payment plan. The CFPB describes these programs as free or discounted care for people who need help paying medical bills.
Hospitals must publicize the policy
Nonprofit hospitals have to post their policy online, offer a plain language summary and put a conspicuous notice on billing statements. As the report notes, it's still up to patients to read it and apply.
A lawsuit can reach a paycheck
In Alexis's case, the lawsuit ended with a judge ordering deductions from her pay. Anyone facing a collection lawsuit should talk to a consumer attorney or a legal aid office about their options.
In their words
“They don't understand terminology like financial assistance or Charity Care, because those terms don't really mean anything.”
“They think that it's a payment plan or something.”
Before you copy this path
The $52,000 cutoff is this hospital's policy as reported, not a national rule, and charity care limits differ from hospital to hospital. Federal requirements apply to nonprofit hospitals, and only some states extend charity care protections to all hospitals.
Medical debt basicsCommon questions
Can a nonprofit hospital sue a patient over an unpaid bill?
IRS rules count a lawsuit as an 'extraordinary collection action.' Before starting one, a nonprofit hospital must notify the patient about its financial assistance policy and generally wait at least 120 days after the first post-discharge bill.
Source: irs.govHow do you apply for hospital charity care?
The CFPB suggests asking the hospital for a copy of its financial assistance policy, which must be provided free of charge and explain how to apply. The application usually asks about income, such as last year's tax forms or a current pay stub, and about expenses like rent and utilities.
Source: consumerfinance.govWhat happens if someone is sued over a medical bill and doesn't respond?
The CFPB says a judgment can be entered against them, which may let a collector garnish wages or freeze funds in a bank account. It notes that some attorneys offer free or reduced-fee help, and legal aid offices may be able to assist.
Source: consumerfinance.govSources
By DebtCheckUSAEditorial Team. This is our summary of a video we didn't make, and nobody paid us to include it. It's one person's experience, not financial, tax or legal advice. Advertiser disclosure
More stories
All stories
Took on a medical bill or a collector
Facing a Big Medical Bill? Charity Care, Itemized Bills and How to Negotiate
Jared Walker of the nonprofit Dollar For explains hospital financial assistance, how to ask for an itemized bill and negotiate it, and paying in installments, with a practice phone call.
Took on a medical bill or a collector
Billed for a Surgery She Never Had, Then Chased by a Debt Collector
A California woman got a $1,100 bill for a Florida shoulder surgery that belonged to another patient with her name, and the debt was sold to a collector. The segment shows how she pushed back and what finally stopped the letters.
Took on a medical bill or a collector
She Thought It Was a Payment Plan. It Was a Medical Credit Card
Rebecca says she signed what she thought was a payment plan for an $850 ER bill, but it was a $2,000 line of credit. Months later, delinquency notices arrived and her credit score dropped 200 points.
Your story starts with the whole picture.
List your debts once and see your debt-free date and which options fit. Nothing you enter leaves your browser.