Charity care is the health services and health care given to certain individuals free of charge or at subsidised charges. Most of such patients are uninsured and have low income that is not enough to cater for medical care. Hospitals that provide charity care are sometimes given compensation by the government for their services (Stern, 2007).

At first, the hospital was not willing to write off Susan’s bill, and the concerned agency had to follow up and investigate the capability of Susan to pay the bill. This means that the community hospital was not willing to provide charity care. However, the community hospital did agree to provide charity care to Susan eventually. This was because her bill was written off after it had been found that Susan could not pay the bill. The concept of charity care works in a way that the whole bill is written off if a patient is unable to pay it. In a case where a patient can pay part of the bill, the hospital covers the rest of the bill (Stern, 2007). Susan could not manage to pay any of her owed bills and, therefore, the charity care given to her catered for the full amount of her hospital bill.

Free market applies in a situation where the price of goods or that of services is determined by the rate of supply and demand of these goods and products. Charity care has a direct effect on free market since the price of the medical service provided is determined by its complexity, the level of health care the service needs and the amount of funds a patient can raise (Schansberg, 2011). Susan was suffering from acute kidney stone that required a lot of attention and medical care. This service was charged at $15, 000 using customary charges of the healthcare facility. The bill was brought down to $ 8,000 which was still a high price since Susan could not raise this amount.  

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