Atrium Health Cancels Medical Debt Liens on 11,500 Homes After NBC News Report

Less than a week after NBC News reported on Atrium Health’s pursuit of unpaid medical debts from former patients, the nonprofit company announced a significant policy change. It has decided to forgive the unpaid debts and cancel the liens it placed on patients' homes to collect on hospital bills. This decision, affecting approximately 11,500 liens in North Carolina and five other states, marks a major shift in Atrium's approach to medical debt collection. Some of these liens date back over 20 years.

North Carolina hospital company forgives debts of 11,500 people

Atrium's parent company, Advocate Health, stated that this change in policy is the "next logical step" following its 2022 decision to stop filing lawsuits and property liens to collect on patients' medical debts. Despite the significant impact of this policy shift, Advocate Health declined to comment further, leaving many questions unanswered.

This decision is expected to relieve a substantial burden on former patients who were facing the prospect of losing their homes due to unpaid medical bills. One such patient, Terry Belk, 68, from Charlotte, is a prime example of the impact of Atrium's previous policy. After his wife's death from breast cancer in 2012 and his own diagnosis of prostate cancer, Belk found himself overwhelmed by medical bills that were not fully covered by insurance. In 2005, he had granted Atrium the right to receive $23,000 from the sale of his family home as part of a financial agreement.

A Surprising Turn of Events

Belk was taken aback when he received a call from an Atrium Health executive informing him that his debts would be forgiven. Astonished by the change, Belk attributed this unexpected turn of events to the national media coverage by NBC News. He expressed disbelief at the impact of the news report, indicating that he had not anticipated such a significant resolution to his financial struggles.

This surprising outcome has drawn attention from various quarters. Rebecca Cerese, a health policy advocate at the North Carolina Justice Center, expressed her pleasant surprise at Atrium's decision and voiced hope that other healthcare institutions would follow suit. Cerese emphasized the importance of addressing the financial stress that exacerbates the challenges faced by patients dealing with health issues or the loss of a loved one.