Years ago when I was in my 20s I needed a hospital stay and had no insurance. What the billing department did was helped me to apply for medicaid which was expected to be denied but it gave the hospital cover to write my treatment off on their taxes.
No, it gave the hospital a reason to charge more for the patients who PAY. I used to do billing for doctors and hospitals. Why do you think aspirins cost $15/or more each? If the people who pay were charged only for their own hospital bill it wouldn't cost so much. They are paying for the people who don't have insurance and don't pay.