Thousands of Ohio residents face wage garnishments after hospital debt lawsuits surge.
In a quiet Ohio town, medical debt has turned into a courtroom routine. At Mary Rutan Hospital in Bellefontaine, the only hospital in Logan County, thousands of patients have faced lawsuits over unpaid bills. For many, a hospital visit that began with pain or injury has ended with years of financial hardship.
Over the past two years, the Ohio hospital has sued roughly 2,700 patients—an astonishing rise compared to past years. Court data show that between 2000 and 2023, the hospital averaged fewer than 400 lawsuits annually. Now, nearly two-thirds of all civil filings in Bellefontaine’s municipal court come from this single hospital. Most of the defendants appear without lawyers, and many never show up at all. When that happens, judges issue automatic rulings for the hospital, allowing it to collect 25 percent of each debtor’s paycheck until the balance, plus 8 percent interest, is paid in full.
The amounts owed vary widely. Some debts total less than $500, while others exceed $100,000. In most cases, patients have no attorney to guide them through the process or question disputed charges. For many, the bills arrive without clear explanations, leaving them confused about how much they owe or why insurance didn’t cover it. Several residents said they didn’t realize they had been sued until their paychecks were suddenly smaller.
Hospital officials say the lawsuits are necessary. In a written statement, CEO Chad Ross explained that Mary Rutan offers financial aid and payment plans but must stay “fiscally responsible” to continue operating. He blamed the spike in lawsuits on legal changes, delayed filings during the pandemic, and the hospital’s need to collect overdue balances. The hospital, a nonprofit exempt from taxes, reported a yearly average profit of about $4.4 million over the last decade.
Still, the toll on local families has been severe. A factory supervisor named Courtney Henderson said she’s watched co-workers get garnished one after another while enduring her own court battles with the Ohio hospital. Even though she had Medicaid coverage, she couldn’t confirm the charges against her. Paying back the debts, she said, left her unable to save for rent or emergencies.
Another resident, cosmetologist Tuff Kline, owed more than $31,000 after surgery for a life-threatening condition that struck when she was between insurance plans. Unable to afford the hospital’s requested $1,500 monthly payments, she now pays $130 per week under court order, with interest added. The debt will follow her for nearly six years. “They just have no compassion anymore,” she said.
Others have filed bankruptcy as a last resort. A local contractor, Dustin Overly, fell behind after knee surgery left him unable to work. When the hospital sued him for $23,000, he chose bankruptcy, saying he had no other choice.
Some in the community, including lawyers and former hospital staff, have criticized the scale of the lawsuits. Attorney Matthew Curry said he has represented several defendants and was shocked by the volume. While hospitals often send overdue accounts to third-party collectors, he said few take their patients to court in such large numbers.
A former paralegal at a law firm that handled the hospital’s cases said she left her job because she couldn’t bear to participate. “It was awful,” she said. “These weren’t credit card debts. These were people who needed care.”
Even some hospital employees have faced lawsuits from their own employer. One worker said she was sued twice for hospital bills connected to childbirth and her child’s care, despite having insurance coverage. She described the situation simply: “I feel helpless.”
A bill now before Ohio lawmakers would limit hospitals’ ability to garnish wages, cap interest at 3 percent, and prevent reporting medical debt to credit agencies. Supporters say the measure could protect families from financial ruin. Opponents argue it would leave small hospitals struggling to recover costs.
For now, the cases keep coming. Each week, more residents find themselves in court, standing before the same magistrate who has heard hundreds of similar cases. In Bellefontaine, the hospital that once symbolized healing now represents something else entirely—survival, not just from illness, but from debt.
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Mary Rutan Hospital sues 2,700 people in two years for unpaid bills
This small-town Ohio hospital sued 2,700 patients in two years for unpaid medical bills
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