That sounds great, but I don't understand how they can do that if the debt isn't to the US government.
The way I understand it, is you owe the hospital money, and after you default, they sell your debt to debt collectors for pennies on the dollar, and then the collectors "own" your debt and harass you and ruin your credit score until you pay.
How does the government have any say on clearing that debt? With the student loan forgiveness, the debt was owned by the federal government, so they can choose to forgive it.