A New Orleans-based network of hospitals and clinics will eliminate $366 million in medical debt for about 193,000 low-income patients in Louisiana, Mississippi, and Alabama.
The agreement between Ochsner Health and the New York nonprofit Undue Medical Debt aims to ease the financial burden of medical expenses for those in need.
Ochsner Health, the largest health system in Louisiana, operates 46 hospitals and 370 clinics and urgent care centers across the three states.
The organization announced its partnership with Undue Medical Debt to eliminate past medical debts for eligible residents, providing much-needed relief in a region where healthcare costs are often a significant burden.
Undue Medical Debt, a donor-funded organization, specializes in negotiating with hospitals, doctors’ offices, and ambulance services to purchase and erase outstanding medical debts.
The nonprofit organization typically pays about 1 cent on the dollar to acquire such debts, making the estimated cost of this deal around $3.6 million.
“The city government gets a lot of credit for getting the ball rolling,” said Daniel Lempert, vice president for communications and marketing at Undue Medical Debt.
Lempert praised the efforts of New Orleans city officials, who had previously committed $1.3 million in federal funds from the 2021 American Rescue Plan Act to the nonprofit.
This initial funding facilitated the erasure of over $59 million in medical debt for 66,000 patients in the city.
Following this success, the partnership between Ochsner Health and Undue Medical Debt was extended to cover a broader geographic area, benefiting thousands more in the southern states.
The relief provided by this initiative underscores the critical need for innovative solutions to address the ongoing issue of medical debt in America.
As this program unfolds, it offers a beacon of hope to those struggling with the weight of unpaid medical bills, highlighting the importance of charitable organizations and healthcare providers working together to bring financial relief to those in need.