[scotty79]

I recently heard that hospitals still benefit from people who don't pay off their medical debt. They sell it for fraction of the amount and use the loss to offset earnings to dodge taxes. Prices of their services are inflated for this purpose (among others). It's better to have triple price, have insurer pay third of it and sell the debt of remaining two thirds as half-price. This way you get all the income and zero taxes. And if some chump patient decides to actually pay them they get ahead even more.

Does it sound plausible?

[gruez]

>It's better to have triple price, have insurer pay third of it and sell the debt of remaining two thirds as half-price. This way you get all the income and zero taxes.

I'm sorry but this sounds like someone invoking "they'll write it off" without knowing how write offs work. In that scenario your revenue will be 2/3rds of the list price. Taxes payable is dependent on your profit, not your revenue. Profit is revenue minus costs. Inflating the list price doesn't change anything in this equation, and thus won't affect your taxes payable.

[scotty79]

I guess you are right. Since they are creating the debt out of thin air selling it for any price is always a profit not a loss.