St. Eugene Catholic Church in Oklahoma City raised $25,000 through a grassroots donation campaign, which erased $6.5 million in medical debt across four central Oklahoma counties. The parish partnered with nonprofit Undue Medical Debt, which buys unpaid medical bills from hospitals and collectors at steep discounts, then forgives the debt entirely rather than collecting it.
The campaign reflects a growing model for medical debt relief: small donations create outsized impact because healthcare debt trades at a fraction of its face value. Father Jim Goins led the effort at St. Eugene, framing it as a direct response to Pope Francis's call for parishes to address poverty and care for vulnerable families crushed by medical bills.
Table of Contents
- How Undue Medical Debt Multiplies Your Donation
- What St. Eugene Accomplished in Four Counties
- Who Benefits and How Medical Debt Relief Works
- The Replicable Model and What Other Communities Can Do
- Limitations and What Medical Debt Relief Cannot Do
- Frequently Asked Questions
How Undue Medical Debt Multiplies Your Donation
Undue medical debt operates on a simple but powerful principle: medical debt often sells for pennies on the dollar. The nonprofit purchases unpaid medical bills from hospitals, health systems, and debt collectors at a steep discount, then erases the debt.
On average, each dollar donated purchases and forgives approximately $100 in medical debt. This is not debt forgiveness as charity in the traditional sense. Undue works with institutions that already wrote off accounts as uncollectable losses. The debt purchase is legal and documented; the people whose debt is erased receive notice and verification, so there is no surprise or catch.
What St. Eugene Accomplished in Four Counties
The Oklahoma campaign exceeded its initial $10,000 target significantly. Donors contributed $25,000 through what the parish called "10-bucks Sundays"—recurring collections specifically for medical debt. That $25,000 purchase eliminated $6.5 million in medical debt owed by families across four central Oklahoma counties, affecting thousands of households in a single transaction.
The scale matters because medical debt is widespread. In Oklahoma, as nationwide, unpaid medical bills are the largest source of personal debt on credit reports, and they remain even after the underlying liability is resolved. Erasing $6.5 million removed a burden that would have followed those families for years.
Who Benefits and How Medical Debt Relief Works
Medical debt forgiveness does not require the debtor to apply, prove hardship, or meet income limits. When Undue purchases debt, it notifies account holders directly. Those notified learn the debt has been erased and cannot be collected—meaning no calls, no lawsuits, no credit report damage from accounts already sold to collection agencies. This model helps people who often fall between cracks in traditional assistance programs.
hospital financial assistance requires applications and income verification. Undue's purchase is unconditional: a person whose debt was erased receives notice, that's final, and no action on their part is required.
The Replicable Model and What Other Communities Can Do
Father Jim Goins explicitly encouraged other parishes and faith communities to replicate the model. Undue Medical Debt provides resources for churches, nonprofits, and community groups to launch their own campaigns. The mechanics are straightforward: set a fundraising target, collect donations, and Undue handles the debt purchase and notification. Several faith communities and nonprofits nationwide have already launched similar efforts.
The barrier to entry is low—a $10,000 fundraising goal is achievable for many parishes and small organizations—but the impact scales based on how much debt is available to purchase in your region. Undue works with organizers to identify medical debt in specific states or counties, so fundraising efforts can be targeted and measured.
Limitations and What Medical Debt Relief Cannot Do
Medical debt forgiveness erases past debt but does not prevent future bills or change how healthcare is priced. A person whose medical debt is erased by Undue still faces the same costs if they need care again. The relief is a one-time intervention, not a solution to the underlying system that creates medical debt. Additionally, Undue's model depends on debt being available for purchase at a discount—meaning accounts already sold to collectors or written off as losses.
Fresh bills owed directly to hospitals may not be purchasable in the same way. And although erasing debt improves credit over time (accounts stop reporting), it does not retroactively fix damage already done while the debt was active.
Frequently Asked Questions
If I am in Oklahoma, how do I know if my medical debt was erased by St. Eugene's campaign?
Undue Medical Debt sends direct notification to households whose debt is purchased and erased. If your account was sold to a collector and you receive notice from Undue, you can verify it through their website or by calling the contact provided in the letter. Do not assume your debt was erased without direct notification.
Can my church or nonprofit launch a similar campaign?
Yes. Undue Medical Debt provides resources and guidance for organizations nationwide. Contact Undue directly to discuss your region, identify available debt, and plan your fundraising target. Most campaigns start with a modest goal like $10,000 to $50,000, which can erase hundreds of thousands in debt depending on local debt availability.
Does erased medical debt hurt my credit score?
Erased debt stops future reporting harm, but accounts that were active and delinquent before erasure remain on your report for seven years from the original delinquency date. Over time, as older accounts age, their impact on your credit score decreases. Erasing the debt does not erase its history, but it stops active collection damage.
Is this taxable income to me?
Medical debt forgiveness is generally not considered taxable income for the recipient. However, tax law varies by situation. If you receive notice of debt erasure and have questions about tax consequences, consult a tax professional or the IRS resources on debt forgiveness.