You may be able to include the $23,000 portion that was for the hospital bill as a medical expense on your tax return, assuming you haven't previously deducted this amount and it wasn't reimbursed by insurance or any other tax free form of reimbursement. The interest portion would not be deductible.
To be deductible, the medical portion had to have been for doctor fees, hospital services, prescription drugs, or other qualified medical treatment. Even though the bill was from a previous year, it's considered deductible in the year it was paid.
