Hospitals hope credit card plans ease bad debt

U.S. hospitals and health insurers are hoping to boost collection of unpaid medical bills, a major drag on hospital profit margins, by expanding offerings that let patients use credit cards to pay for care.

Hospitals have been struggling to collect unpaid medical bills as rising numbers of Americans go without health insurance and those with coverage face steeper costs. Unpaid bills, also known as "bad debt," have been rising for several years and are seen worsening in 2007.

The new credit programs, offered through deals among hospitals, insurers and financial services companies, seek to lure patients to use credit cards by offering a discount on medical services or easier access to the tax-free medical spending accounts set up by their employers.

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