You’re uninformed or misinformed. When hospital bills go unpaid they calculate the losses into future billing.
This way the bills are paid by other patients and thier heath insurance companies.
I’ve wondered about that. It goes for doctors too
Typically, a bill will be tendered and medicare will pay it partially. What happens to the accounting?
In theory, the unpaid remainder becomes a bad debt. On a corporate income tax form, bad debts are deductible to reduce income and thus taxes.
Do doctors and hospitals then pay taxes?