An Age-Old Concept Offers a Fresh Solution for a Hospital's Debt Woes

A handout was the last thing the man sitting in Richard Batt's office wanted.

The man, who was in his early 70s, had enjoyed a career as an accomplished and prize-winning writer. But the royalties had dried up, and he lacked health insurance to pay some hospital bills for his teenage son.

"He broke down in tears," recalls Mr. Batt, president of Franklin Memorial Hospital, a 70-bed nonprofit facility in Farmington, Me. "He was embarrassed. He didn't want to go the charity-care

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