Holding NC Hospitals to Their Charity Care Promises — What It Means for Our Community

Published May 19, 2026 | Source: The Assembly NC | By Sara Israelsen-Hartley

A powerful new investigative report published today speaks directly to the work LVCM CDC is doing through our Healing Without Debt initiative in Forsyth and Guilford Counties. The article documents both a historic breakthrough and a serious accountability challenge our community must be aware of.

The Breakthrough: $6.5 Billion in Medical Debt Forgiven

In 2024, all 99 acute-care hospitals in North Carolina agreed to relieve unpaid medical debt going back to 2014 and to expand charity care in exchange for more than $6 billion in enhanced Medicaid reimbursements from the state. More than 2.5 million North Carolinians have already received letters telling them their old bills have been wiped out. This was the first time any state in the country tied Medicaid payments to hospitals provision of charity care.

What Happened at Greensboro Peeler Recreation Center

One of the key scenes in the article takes place at a community listening session at Greensboro Peeler Community Recreation Center — one of our Health in the Streets activation sites in Guilford County. A community member named Amber Holloway received a letter with an UNDUE stamp telling her eight old hospital bills had been forgiven. Her first reaction: I thought it was fake. That moment captures exactly why our Healing Without Debt work exists. Debt relief is happening but communities do not know it. Charity care is available but families do not know how to claim it. Rights exist but residents do not know they have them.

The Accountability Problem

While the debt relief program is historic, the reporting reveals a troubling gap. Nearly half of NC nonprofit hospitals received more in tax benefits than they spent on charity care in fiscal year 2022. NC hospitals had $72 million in bad debt from patients who would have qualified for charity care under the hospitals own standards but were sent to collections instead. Hospital compliance reports are due this summer. As Rebecca Cerese of the NC Justice Center told the Greensboro community: We do not know if hospitals are doing that or not. Our community needs to be watchful.

Our Healing Without Debt Response

LVCM CDC Healing Without Debt operates a three-track model. RELIEF: We connect residents to the debt forgiveness they are already owed and help them navigate disputes with hospitals that have not complied. PREVENTION: We educate families about charity care eligibility before bills go to collections, ensuring applications happen before any bill ever goes to collections. PROTECTION: We advocate alongside the NC Justice Center and community partners to hold hospitals accountable as the summer reporting deadlines arrive. We deploy this model at every Church in the Streets and Health in the Streets activation.

Know Your Rights Under NC Medical Debt Law

If your household income is at or below 350 percent of the Federal Poverty Level, you may qualify for charity care at your hospital. Medical debt going back to 2014 is eligible for forgiveness at all 99 participating NC acute-care hospitals. If you received a letter with an UNDUE stamp, it is real and your debt has been forgiven. If you have old medical bills and have NOT received a letter, contact our Healing Without Debt navigators. We can help you determine eligibility and file for relief.

Read the Full Report

Read the full investigative report at The Assembly NC: https://www.theassemblync.com/news/health/healthcare/hospitals-medical-debt-charity-care-north-carolina/ — This is the kind of journalism that empowers communities to hold institutions accountable. Share it. Print it. Bring it to your neighbors.

Get Help Now

Attend one of our upcoming Health in the Streets or Church in the Streets events, or contact us directly: LVCM CDC Healing Without Debt | (336) 925-4045 | info@lvcmcdc.org | www.lvcmcdc.org | No appointment needed. No judgment. Real help at the doorstep of the communities that need it most.