Can Hospitals Send Non-Paying Patients to Collections?

The question of whether hospitals can send non-paying patients to collections is a common one. While many patients are given the opportunity to set up a payment plan, hospitals often have the legal right to pursue unpaid medical bills by sending them to collections if necessary. This article will explore the various factors and steps patients can take to avoid or temporarily stop such actions.

Understanding the Legal Process

Just like any other business, hospitals may send patients with unpaid medical bills to collections if those debts are not settled within a reasonable time frame. The decision to send a debt to a collection agency typically depends on the hospital's internal policies. However, it's important to note that patients are often given an opportunity to make partial payments or set up affordable payment plans, especially if they are experiencing financial hardships.

While hospitals are expected to work with patients, they may resort to debt collection as a last resort to protect their financial stability. In the United States, all hospitals are businesses and are legally allowed to send unpaid medical bills to collection agencies. These agencies purchase unpaid bills for a discounted price and then attempt to collect the full amount from patients.

Options for Patients

There are several options available to patients to avoid or temporarily stop the collections process:

Hospital Charity Care: Patients can apply for hospital charity care if they meet certain eligibility criteria. If approved, hospitals may reduce or waive the patient's medical bill. Patients who have paid on other claims in the past few months may also be eligible for a refund. Payment Arrangements: Making partial or full payments can help avoid the collections process. Even a small payment can help improve your situation. Referral to Legal Aid: Patients who are facing significant financial hardships may seek legal assistance to understand their rights and options. In some cases, a lawyer may be able to negotiate with the hospital or collection agency to get bills reduced or removed.

Consequences of Ignoring Medical Bills

If a patient consistently ignores their medical bills, the hospital may send them to collections after about 6 months. This can have serious consequences for the patient's credit score and financial well-being. Collection agencies will continue to harass the patient, and the debt may even affect their ability to secure future medical treatments. In extreme cases, hospitals can place liens on the patient's real estate, prioritizing payment of the medical bills.

These practices can result in significant stress and financial strain for individuals. However, it's worth noting that many hospitals and collection agencies are bound by regulations and ethical standards. There are also legal rights and options available to patients who are facing unpaid medical bills.

Conclusion

Hospitals have the right to send unpaid medical bills to collections if patients fail to pay their bills. While it's not ideal for anyone to be sent to collections, patients have several options available. It's important to stay informed about your rights and the available options, whether it's through hospital policies, payment arrangements, or seeking legal assistance. By understanding the process, patients can take proactive steps to manage their medical debts and avoid the stress and financial impact of collections.