How Common Are Hospital Lawsuits for Medical Debt?

Across the U.S., hospitals are suing more patients over unpaid medical bills than ever before. Some nonprofit hospitals have filed thousands of lawsuits a year, even for small amounts. Headlines show families facing wage garnishments and court judgments simply for getting medical care.

In this blog, we’ll explore how common these lawsuits are and why they’re increasing, an issue that even those in licensed practical nurse programs in Chicago should understand as they enter the healthcare field.

How Common Are Hospital Lawsuits for Medical Debt? (With Data)

Hospital lawsuits over unpaid medical bills are more common than most people think. Between 2023 and 2025, reports show that thousands of lawsuits are filed each year by hospitals across the U.S. A study from Kaiser Health News revealed that some hospital systems took over 20,000 patients to court in just one year. Even small community hospitals have filed hundreds of lawsuits for medical debt.

According to data from the Consumer Financial Protection Bureau (CFPB) and the Journal of the American Medical Association (JAMA), around 25% of U.S. hospitals have sued patients over unpaid bills in recent years. Some go straight to court, while others use collection agencies to chase down payments. But either way, the pressure on patients is growing.

What’s Causing the Rise in Lawsuits?

There are a few clear reasons why this is happening more often:

• Rising healthcare costs make it harder for patients to keep up with bills. Even with insurance, out-of-pocket expenses can be overwhelming.
• Insurance coverage is shrinking. More people have high-deductible plans, which means they’re stuck paying more upfront.
• Hospitals, including nonprofits, use aggressive debt collection to recover payments. Some even sue over small amounts, such as $500 or less.

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This leads many to ask, how often do hospitals sue for unpaid bills? The answer: more than most expect, and the numbers keep rising.

Who Gets Sued and Why?

Sadly, lawsuits don’t just target people with large debts. Many patients being sued are low-income individuals who struggle to pay for even basic care. Others face legal action for minor unpaid bills, often due to surprise charges or insurance claim denials they didn’t expect. Some never received a clear bill before being taken to court.

In anatomy and physiology classes, future healthcare workers often learn how the body works, but they may not learn how often hospitals sue for unpaid bills or how this affects real people. That’s why this issue matters beyond just legal statistics.

Where Are Lawsuits Most Common?

Certain states see much higher lawsuit rates than others. For example:

• Virginia has some of the highest numbers of hospital debt cases.
• Texas and Tennessee also rank high for filing lawsuits over unpaid medical bills.

These states have large hospital networks that rely on court action as a regular part of their billing process.

So, do hospitals write off unpaid medical bills? Sometimes, yes. But more often than not, they pursue payment through aggressive tactics, including lawsuits. Many patients believe bills will be forgiven, only to receive a court summons instead. That’s why it’s important to understand how often do hospitals sue for unpaid bills and what steps to take before it gets to that point.

While some hospitals may choose to write off unpaid medical bills, it’s clear that suing patients has become a common strategy in the U.S. healthcare system.

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Conclusion

Yes, hospital lawsuits for medical debt are common, and they’re growing. But there are signs of change. The No Surprises Act and proposed rules aim to limit harsh collection practices. Patients should request itemized bills, ask about charity care, or seek legal help. As more people learn how hospitals handle unpaid medical bills, awareness of hospital debt forgiveness for unpaid bills is also growing, even in programs with Illinois College of Nursing accreditation.