Regional to Charge Interest on Unpaid Bills

Five Regional Health hospitals in the Black Hills of South Dakota are changing their payment programs. The change causing the most conversation/consternation is its forgoing of long-term, interest-free payment plans on about $15 million in unpaid hospital bills.

Regional has about $60 million in outstanding hospital bills at any time, Mark Thompson, vice president of finance, explained to the Rapid City Journal. About $15 million of that is currently on long-term payment plans that can stretch out over years, in some cases.

Patients with outstanding bills will be offered a one-time 40 percent discount if they pay their bill in full or make plans within 30 days to pay the remaining balance within an agreed-upon time.

For those who can’t or don’t pay, or who do not contact the hospital to arrange a payment plan, the hospital has contracted to transfer those accounts to Medical Credit Resources, which will charge a 12 percent annual interest fee on the balance.

New patients who take longer than 90 days to pay their bills also will have their accounts transferred to Medical Credit Resources.