In practice, this is exactly what happens. Many hospitals have a mandate not to deny treatment, so many people come to the hospital (especially to the emergency room, where care is known to be more expensive than non-emergent settings) and simply don't pay after the fact.
I don't know how to solve this, or whether it's fair, but it's pretty universal if you talk to people in healthcare billing.
I don't know how to solve this, or whether it's fair, but it's pretty universal if you talk to people in healthcare billing.