Healthcare price increases have been a frequent topic of public debate, but little is understood about how such increases impact consumers. I study the effect of hospital prices on the financial health of individuals. I use detailed healthcare microdata and state hospital cost reports obtained via a series of Freedom of Information Act (FOIA) requests to construct a novel zip-level measure of prices that hospitals charge for their services. Using insurer medical loss ratio as an instrument, the findings reveal a causal link between higher hospital prices and adverse financial outcomes, including a rise in personal bankruptcy filings and reduced demand for home mortgages. I provide evidence that financial institutions are less inclined to approve mortgage applications due to elevated debt-to-income ratios resulting from escalating hospital prices. Additionally, I show an increase in credit card debt and increased use of home equity line of credit. Furthermore, I provide evidence that such price increases disproportionately impact areas with individuals particularly exposed to healthcare prices, such as areas with a higher percentage of uninsured individuals, lower Medicare/Medicaid enrollment and areas with a higher population concentration of people of color. However, the presence of home equity appears to mitigate some of these effects, as areas that experienced plausibly exogenous increases in house prices are less impacted by increases in hospital prices. The results are robust to alternative specifications and using an alternative instrument exploiting changes in prices induced by hospital competition in a geographic area.