Allina Health, a prominent nonprofit healthcare system based in Minnesota, made the announcement on Friday that it will cease withholding care from patients with outstanding medical debt. The organization stated that it is currently re-evaluating its policy of cutting off services to individuals who have accumulated at least $4,500 in unpaid bills. While this practice will be temporarily halted, Allina will not restore care to patients who have already lost access due to their indebtedness.
Previously, Allina’s hospitals provided emergency room treatment to all individuals, regardless of their financial situation. However, other services were denied to patients with medical debt, including children and those managing chronic illnesses like diabetes and depression. These patients were unable to receive further treatment until their debt was completely paid off. Allina’s CEO, Lisa Shannon, referred to the decision as a “thoughtful pause” while the company re-evaluates its policy.
Dr. Matt Hoffman, a primary care physician at Allina in Vadnais Heights, Minnesota, expressed optimism regarding the change and voiced hope that the organization will ultimately implement more significant reforms in its treatment of indebted patients. He emphasized the importance of not considering this as just a temporary measure to alleviate current criticism and urged Allina to reinstate those patients who have already been terminated.
Minnesota Public Radio initially reported on the policy change, and Allina Health, as a nonprofit entity, was able to avoid approximately $266 million in taxes at the state, local, and federal levels in 2020, according to the Lown Institute, a healthcare think tank. In response to Allina’s practices, Minnesota Attorney General Keith Ellison has encouraged affected patients to reach out to his office. Mr. Ellison expressed his concern upon reading The New York Times article and stated that Allina is obligated, under the Hospital Agreement, to refrain from aggressive billing practices and provide charity care to qualifying patients, just like all hospitals in Minnesota.
Allina Health owns and operates 13 hospitals and over 90 clinics in Minnesota and Wisconsin. By revamping its policy on withholding care from indebted patients, the organization aims to address the concerns raised and foster a more compassionate approach in its provision of healthcare services.
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