In 2025, the city agreed to give $1 million to the charity-driven organization, which purchases medical debt from hospitals and debt collectors at a discount and pays off that debt for individuals it identifies as experiencing hardship.
Lexington has a three-year contract with the group.
In their first detailed breakdown of how the debt forgiveness initiative is proceeding, the council was told that more than $12.6 million in medical debt has been erased for nearly 6,500 Fayette County residents. UMD says the cost was about $90,000, or 0.7% of the total cost of the debt itself.
While the council has been enthusiastic about the program, Mayor Linda Gorton has expressed concern about the administrative costs involved in UMD — allowing the contract to move forward without her signature.
But Tuesday, Councilwoman Liz Sheehan said the initial report shows the program is working.
"Some of my constituents have asked me about the program, (questioning if) this an efficient use of taxpayer funds. When you look on the return on investment that we're getting and the sheer amount of relief that has happened already even as we're getting started, I think the answer is yes," she said.
The city's partnership with UMD still has over $900,000 left to spend.