How Memphis's Methodist University Hospital, a "nonprofit," sued the shit out of its Black, poor patients while raking in millions and paying execs more than a million each

Methodist University Hospital in Memphis is a nonprofit: it pays virtually no local, state or federal tax; but unlike other Methodist hospitals, Methodist University Hospital is relentless in pursuing medical debts from indigent patients. The hospital owns its own collection agency, and is one of the leading litigants in Tennessee's debt courts.

At issue is Methodist University Hospital's policy of requiring patients to cover any expense excluded by their insurers, no matter how high that deductible or excess is and no matter how poor the patient is. And since Obamacare's lowest-cost plans carry incredibly high deductibles and excesses, and exclude many forms of care, the poorest patients at Methodist University Hospital are also expected to pay the highest bills.

There are a lot of poor people in Memphis, which is the second-poorest city in America, with more than 40% of the city's workforce earning less than $15/hour. The poor people of Memphis include Methodist University Hospital's own staff, many of whom have been sued by Methodist University Hospital because they couldn't afford their medical bills on the salary the hospital paid them. In addition to suing dozens of its own employees, Methodist University Hospital has garnished the wages it pays to more than 70 of its own workers.

Memphis's inequality closely tracks with race, with Black people carrying a much higher risk of poverty.

Methodist University Hospital's management -- including CEO Dr. Michael Ugwueke, who was paid $1.6 million in total compensation last year and former CEO Gary Shorb, who draws $1.2m/year to serve as Ugwueke's advisor -- are apparently pursuing this agenda on their own. Read the rest