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Fraud perpetrated against some Customers is not a remedy for non-payment by others.

Some non payment is also considered bad debt (they expect the patient to pay, the patient doesn't pay). With charity care, the bill is explicitly forgiven.

The hospital industry claims non payments total around 6% of hospital expenses.

http://www.modernhealthcare.com/article/20120106/BLOGS01/301...

I do wonder if they calculate that 6% on what they bill though, rather than on what things actually cost. The margin on an unpaid bill isn't really a cost.

I remember reading that the 6% are from the billed prices, not the cost. The same when they claim to do things for poor people. They do a few procedures for free and claim the billed price so they can have nice PR for cheap.

Also for tax reasons, although different hospitals have different tax classifications.

No you don't.

This doesn't justify billing mistakes.

in reality that's covered by the price gouging and the hospital getting to write it off