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Hospital bad debt is on the rise in the U.S., with more than one-third of active hospitals reporting more than $10 million in unrecovered funds. Of the 25 hospitals on our list, eight reported bad debt that was greater than their net patient revenue in fiscal year 2017. The high rates of bad debt could be attributed to many factors, including high percentages of uninsured patients, lack of revenue cycle management, and more.
The average bad debt ratio for the hospitals on our list is over 105 percent, with the median being just under 82 percent. All 25 hospitals reported a combined $2.3 billion in bad debt, with an average of $95 million.
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