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5/13/2025 4:37:02 PM
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California's Costly Decision: State Hospital Bills Mentally Ill Man $760,000


California's Costly Decision: State Hospital Bills Mentally Ill Man $760,000

Outrageous Practice: State Hospitals Billing Former Patients for Hundreds of Thousands of Dollars

CalMatters is a nonprofit, nonpartisan newsroom that delves into California policy and politics. Recently, there has been an uproar regarding the billing practices of the Department of State Hospitals, especially towards vulnerable patients released from their care.

The Shocking Bills

After being released from Napa State Hospital, Sultan Khan was stunned to receive a bill for $769,490 to cover the cost of his stay. This practice of billing patients hefty amounts upon release has been in place since the 1930s, despite recent laws prohibiting similar charges for other vulnerable populations.

  • California has five state mental health hospitals with over 5,500 patients, most from the criminal justice system.
  • Medi-Cal does not cover individuals in state hospitals, leaving them financially burdened upon release.

Public defenders like Rachel Draznin-Nagy have expressed outrage over the Department of State Hospitals' actions, calling it unfair and exploitative.

'I'm Basically Going to Be in Debt for the Rest of My Life'

Khan, diagnosed with schizophrenia, is struggling to cope with the massive bill he received. Despite the treatment he received at the hospital, he now faces a lifetime of debt due to the exorbitant charges.

  • Advocates and attorneys are fighting against these billing practices, arguing that they place undue financial burdens on already vulnerable individuals.
  • Legislative changes have been made in recent years to stop similar billing practices for other groups, but state hospital patients continue to be targeted.

What do you think?

  • Should state hospitals be allowed to bill patients such exorbitant amounts after their release?
  • Is it fair to burden vulnerable individuals with massive debts for seeking mental health treatment?
  • Should legislative action be taken to stop this practice once and for all?

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Source Credit

Marcus Johnson
author

Marcus Johnson

An accomplished journalist with over a decade of experience in investigative reporting. With a degree in Broadcast Journalism, Marcus began his career in local news in Washington, D.C. His tenacity and skill have led him to uncover significant stories related to social justice, political corruption, & community affairs. Marcus’s reporting has earned him multiple accolades. Known for his deep commitment to ethical journalism, he often speaks at universities & seminars about the integrity in media

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