Community Hospital-In January 2008, Susan Cromartie was admitted
Health policy Case Study
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“Community Hospital”
In January 2008, Susan Cromartie was admitted to Community
Hospitalâ??s emergency room for treatment of an acute kidney stone. On
admission, Susan gave the hospital her name and address and then was rushed to
treatment. She was released 8 hours later. The hospital sent Susan a bill
($15,000, using the hospitalâ??s â??customary chargesâ?) and
tried to contact her a half-dozen times over the next 3 months regarding
payment, but Susan never responded. At the end of three months, the hospital
turned Susanâ??s account over to a debt collection agency. That agency tracked
down Susan, and found that she was unemployed and behind in her rent on a small
apartment. The debt collection agency advised the hospital that the emergency
room bill was uncollectible under the circumstances, and the hospitalâ??s
accounting department wrote off the bill. The cost of Susanâ??s services to the
hospital (using an average cost methodology, including overhead) was $8000.
“Do you think the hospital provided â??charity careâ? to Susan? If so, in what amount and how does this affect the free
market?”
1. Explanation of the relationship between charity care and
Susan
2. Analysis of the amount of care provided to Susan and the
impact on the free market(If any)
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