Please point to me an indigent person, or a person who is eligible for Medicaid but doesn't have it say, who ever got an assessment from the IRS for written-off medical debt.
The hospital should issue the former patient a 1099 form, for the services performed. Then lets see just how the government treats said indigent patient when they cannot pay taxes on their windfall. Said patient will end up in jail. Only the government can abuse the patients. The government hates the competition, as was said above.