Rehabilitation hospitals must offer financial assistance to cover emergency and medically necessary care for uninsured and underinsured patients. Nonprofit rehabilitation hospitals are legally required to maintain and publicly share a written Financial Assistance Policy as a condition of their tax-exempt status, under federal IRC Section 501(r) rules.
For-profit facilities operate under no such mandate, so assistance availability varies widely by facility. Most rehabilitation hospitals base eligibility on household income and insurance status, with typical tiers offering full write-offs for families below 100% of the Federal Poverty Line ($33,000 for four people in 2026) and 25–75% discounts for those between 200–400% of the poverty line ($66,000–$132,000). The program covers hospital stays, rehabilitation therapy, and outpatient services—but elective and cosmetic procedures are typically excluded.
Official resources:
- Read the official guidance from CMS — Use this primary source to verify the official guidance.
- Check eligibility on Atriumhealth’s official study page — Use this page to check the study’s participation requirements.
Table of Contents
- Who Qualifies
- Income Thresholds and Assistance Amounts
- How to Apply
- Nonprofit Hospitals vs. For-Profit Facilities
- What to Do If You're Declined
- Frequently Asked Questions
Who Qualifies
Uninsured patients have first priority. Before approval for assistance, you must cooperate with Medicaid application processes and exhaust third-party funding sources like auto insurance or settlements. Many rehabilitation hospitals screen applicants for Medicaid eligibility automatically, so you may be enrolled without formal effort on your part.
Insured patients with high-deductible plans or significant out-of-pocket costs can also apply for financial assistance if medical debt creates genuine hardship relative to household income, though uninsured patients receive priority consideration. If your insurance does not cover rehabilitation care or leaves you with large bills, contact the hospital's patient financial services department to discuss your options.
Income Thresholds and Assistance Amounts
financial assistance is income-based. Families earning under 100% of the Federal Poverty Line qualify for a full write-off of charges, while those earning between 200–400% of the poverty line typically receive 25–75% discounts depending on the facility's specific policy. A family of four earning $33,000 would qualify for full assistance; one earning $80,000 might receive a 50% discount.
The exact threshold and discount percentage vary by hospital, so your eligibility at one facility may differ from another. Request the hospital's written Financial Assistance Policy summary—nonprofit hospitals are required to provide this in plain language at no cost—to see the exact income bands and assistance levels before applying.
How to Apply
Application requires documentation of household income and proof in the form of tax returns, pay stubs, or utility bills. Contact the hospital's financial assistance or patient financial services office to request an application, available on the hospital website or by phone. Most facilities allow you to apply before, during, or after your stay.
Approval typically takes 5–30 days once you submit complete documentation. If your application is incomplete, the hospital will notify you of missing documents. Some hospitals will hold bills and suspend collection attempts while your application is under review, so ask about this when you apply.
Nonprofit Hospitals vs. For-Profit Facilities
Nonprofit rehabilitation hospitals are required by law to maintain and offer financial assistance programs, while for-profit rehabilitation hospitals are not subject to these requirements, so availability and generosity vary widely. Nonprofit status and facility size are the strongest predictors of assistance scope—larger nonprofit systems typically offer more generous programs and wider income thresholds.
Before you commit to a rehabilitation hospital stay, confirm that your facility offers financial assistance and obtain its policy document. If you cannot afford the out-of-pocket cost, ask whether the facility is nonprofit and what income limits apply. For-profit facilities may offer assistance but are not required to, so you will negotiate on a case-by-case basis.
What to Do If You're Declined
If your application is denied, request a written explanation of the reason. Common reasons include income above the facility's threshold, failure to cooperate with Medicaid application, or omission of required documentation. You have the right to appeal most denials—ask the financial assistance office for its appeal procedure and deadline. If appeal fails, contact your state's hospital ombudsman or patient advocate office for free help.
Some hospitals negotiate reduced cash-pay rates with patients they cannot place in assistance programs. Medical bill advocates and patient assistance foundations may also help identify additional funding sources for your specific condition or hospital.
Frequently Asked Questions
Does financial assistance cover physical therapy at rehabilitation hospitals?
Can I apply for financial assistance after I'm discharged?
Yes. Most hospitals allow applications before, during, or after your stay, though you may need to appeal if bills have already been sent to collections.