Can hospitals still send unpaid medical bills to collections?

Core Impact Points

• Hospitals can still send unpaid medical bills to collections, but they typically attempt to work with patients on a solution before escalating the debt.
• Nonprofit hospitals are required to follow certain financial assistance and billing rules before taking extraordinary collection actions.
• Recent changes in credit reporting rules have limited the reporting of certain medical collection accounts, including removing paid medical collections and delaying when unpaid medical collections can appear on credit reports.
• Smaller medical collections debts typically have less impact on credit decisions than they once did, but patients can still receive collection notices and face lawsuits in certain situations.
• Patients should review their bills for errors, apply for financial assistance, and consider debt relief solutions to minimize the impact of unpaid medical debt.
• Early communication with hospitals and collection agencies can create more opportunities for negotiation and affordable solutions.