N.C. Hospital Wants to Intercept Tax Refunds, Lotto Winnings for Unpaid Patient Debt

For many Americans spring marks the anticipation of a tax refund from federal or state governments. But residents of one North Carolina county who owe a medical debt to the New Hanover Regional Medical Center (NHRMC) may soon discover that the hospital has the ability to intercept state income tax refunds or lottery winning to cover individual patient bad debt.

According to a story on StarNewsOnline, NHRMC wants in on an already established county debt settlement program that allows the county government to capture funds from tax refunds and lotto windfalls in the event of unpaid municipal financial obligations.

Since the program’s inception, the county has collected almost $3 million from residents who owe government debts. To date, the hospital has not been able to leverage this tool to recover lost revenue. County officials believe that policy should change.