Final answer:
Uninsured individuals often delay seeking medical attention, which can lead to emergency room visits that hospitals must provide by law. The costs are partially covered by the government, but the rest is handled by charities or the insured, presenting an economic externality.
Step-by-step explanation:
The issue of when to report indigents for medical attention is rooted in the broader context of Access to Medical Facilities. Before the implementation of the Affordable Care Act, also known as Obamacare, many poor individuals lacked health insurance, leading to limited healthcare options.
These uninsured individuals often delay seeking medical help until their conditions worsen, necessitating costly emergency room visits, which hospitals are federally mandated to provide regardless of the patient's financial means. Emergency care costs are partially covered by the government, but the remainder is often shouldered by charities or distributed among insured patients, revealing an economic externality. Hospitals providing care for numerous indigent patients may encounter severe financial strain, risking closure.