October 29, 2025 | From City of New Orleans
The City of New Orleans Health Department Partners with Undue Medical Debt to Eliminate Medical Debt for Eligible Low-Income Patients
New Orleans, LA. -- The City of New Orleans, together with its Health Department, New Orleans City Council, LCMC Health, and the national nonprofit Undue Medical Debt (previously RIP Medical Debt), is proud to announce the successful conclusion of the city’s Medical Debt Relief initiative, which has helped ease the burden of medical debt for residents across Orleans Parish.
With the most recent round of debt cancellation, LCMC Health and Undue Medical Debt (UMD) partnered to abolish $30 million in medical debt for 21,000 New Orleans residents. This marks the final phase of a collaborative effort launched in 2023 to help residents burdened by unpayable medical debt.
In total, since the initiative began, the partnership with Undue Medical Debt has erased more than $150.5 million in unpaid medical debt for 123,436 people across Orleans Parish.
“LCMC Health is proud to partner with the City of New Orleans and Undue Medical Debt to help bring relief to our patients by eliminating outstanding medical debt,” said Greg Feirn, CEO of LCMC Health. “No one should ever have to choose between their health and their financial well-being. As a community-rooted, patient-centered health system, we’re committed to doing our part to provide patients with the compassionate care they deserve.”
Those who had debt cancelled will automatically receive an official letter from UMD confirming which medical debts have been erased. Undue works with hospital systems and other providers across the country, along with collection agencies, to purchase portfolios of past due medical debt belonging to those least able to pay and then it erases the debt. Qualifying medical debt is purchased in bulk at a fraction of its face value, so one dollar donated erases $100 of medical debt on average. Every eligible patient included in this partnership will receive a one-time notification in a branded envelope from Undue Medical Debt confirming that their debt has been cleared. Medical debt relief is source-based, meaning it cannot be requested.
Under Undue’s guidelines, those who qualify for this medical debt relief have medical debts that are 5 percent or more than their annual income or they earn at or below four times (400%) poverty-level income. The current federal poverty level is an annual income of under $32,150 for a family of four. Letters for residents who qualify for this one-time debt relief are arriving in the area now. Residents do not need to take any action, as the eligible medical debt will automatically be eliminated for those who qualify.
“This initiative shows what’s possible when we put people first,” said Mayor LaToya Cantrell. “Medical debt can weigh heavily on families, affecting their health, their finances, and their peace of mind. By working together with our hospital partners and Undue Medical Debt, we’ve lifted a major burden for thousands of New Orleanians. This is equity in action, and it’s how we build a stronger, healthier, and more resilient city for everyone.”
The City of New Orleans entered into an agreement in May 2023 to partner with Undue Medical Debt and provide the national nonprofit with $1.3 million in American Rescue Plan Act (ARPA) funds to acquire and eliminate qualifying debt for city residents facing financial hardship. This initiative was unanimously approved by the New Orleans City Council and represents a powerful investment in health equity and economic justice.
“Today’s action to erase residents’ medical debt represents another concrete step toward building a fairer, healthier city. This initiative reflects our belief that access to care should never come at the cost of long-term financial hardship. Every family freed from this burden represents a story rewritten - one where stability and dignity replace stress and uncertainty. We’re proving that government can and should lead with compassion and practical solutions, ensuring that recovery, both physical and financial, is within reach for everyone,” said City Council Vice President Helena Moreno.
A December 2020 analysis of credit reports by the Consumer Financial Protection Bureau found that about 22 percent of Louisiana's population has medical debt. The Undue Medical Debt partnership helps further health equity efforts, as social risk factors exacerbate existing health disparities. Data shows communities of color are disproportionately impacted by medical debt.
“Medical debt is more than a financial burden—it’s a public health issue. When people delay or avoid care because of cost, their health and well-being suffer. This partnership shows what’s possible when we align public health, healthcare systems, and national partners toward equity. Together, we’ve helped more than 123,000 New Orleanians breathe a little easier,” said Jeanie Donovan, Deputy Director of Population Health and Disease Prevention of the New Orleans Health Department.
The city’s collaboration with Undue Medical Debt and local healthcare partners, including Ochsner Health and LCMC Health, shows how public and private organizations can work together to create meaningful change. Both health systems have a strong history of offering accessible, affordable care and supporting patients who face financial challenges.
As this initiative comes to a close, the City of New Orleans is proud to have helped erase more than $150.5 million in unpaid medical debt for 123,436 residents, giving families across the city much-needed financial and emotional relief.
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About the New Orleans Health Department
The mission of the New Orleans Health Department is to promote, protect, and improve the health of all in our community through equitable policies, programs, and partnerships.
About Undue Medical Debt
Undue Medical Debt (formerly RIP Medical Debt) is a national 501(c)(3) nonprofit that was founded in 2014 by former debt collectors. To date Undue Medical Debt has acquired — and abolished — almost $12 billion of burdensome medical debt, helping over 7 million families and addressing a major social determinant of health. Undue Medical Debt purchases debts for a fraction of their face value in bundled portfolios and partners with individuals, faith-based organizations, government, foundations, and corporations to empower donors by converting every dollar contributed into $100 of medical debt relief on average.
Undue Medical Debt partners with hospitals, health systems and physician groups to acquire medical debt for abolishment. Undue Medical Debt rose to national prominence on an episode of HBO’s “Last Week Tonight” with John Oliver in which Undue Medical Debt facilitated the abolishment of $15M in medical debt. To learn more, visit: https://unduemedicaldebt.org/
About LCMC Health
Established in 2009, LCMC Health is a Louisiana-based, not-for-profit hospital system serving the healthcare needs of the Gulf Coast region. LCMC Health currently manages Manning Family Children’s, East Jefferson General Hospital, Lakeside Hospital, Lakeview Hospital, New Orleans East Hospital, Touro, University Medical Center New Orleans, and West Jefferson Medical Center.