Career Calling

December 20, 2014

Not-for-profit Hospitals and a New Type of Wage Theft


Huffington Post reports* that hospitals are now part of the wage theft game. Many would assume that these are for-profit hospitals who only care about the bottom line. Instead, the culprits are not-for-profit hospitals, the kind that like to use words like care in their marketing. They’ve given a new twist to wage theft. Rather than cheat their own workers (which they may or may not do), they are garnishing the wages of low income workers who have no health insurance or insurance that does not cover all of the bills. Wage garnishment laws vary from state to state. Kansas, Oklahoma, Nebraska, Missouri, and Alabama are most lenient in enabling wages to be garnished.

Some might argue that this isn’t wage theft because the charges are legitimate. Not so fast. Not-for-profit hospitals agree to serve the poor as part of their corporate charter, which provide tax-exempt status. Instead, too many of these “caring” institutions charge higher fees to those without insurance and sue to take a large part of their wages. Again, no one is saying that patients shouldn’t pay all or part of what is owed. The problem is that large hospitals that are supposed to serve the poor seem to be going out of their way to punish that’s wrong. That’s wrong.

*The story was originally covered by NPR and Pro Publica.


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