HCI HealthCare Collections
HCI HealthCare Receivables Management

Client Login  |  Payment

1-800-219-3101

Developing a Suitable Response

What started out as one article about hospitals that file lawsuits against their former patients with unpaid medical debts has turned into a national phenomenon, as more and more mainstream media outlets turn their spotlights onto the healthcare networks in their markets. A running tally of the areas that have seen articles published include:

* Memphis [https://www.healthleadersmedia.com/finance/nonprofit-hospital-makes-millions-owns-collection-agency-and-relentlessly-sues-poor]

* Glens Falls, N.Y. [https://poststar.com/news/local/glens-falls-hospital-takes-patients-to-court-over-billing/article_55ed6d88-62b9-5c97-9819-5811e5082fe3.html]

* Fredericksburg, Va. [https://www.fredericksburg.com/news/local/mary-washington-hospital-suspends-policy-of-suing-patients-following-american/article_526d34d5-e374-545f-8568-0c66ba0734e5.html]

* Baltimore, Md. [https://www.baltimoresun.com/health/bs-hs-hopkins-sues-patients-20190516-story.html]

* Virginia [https://www.washingtonpost.com/health/uva-has-ruined-us-health-system-sues-thousands-of-patients-seizing-paychecks-and-putting-liens-on-homes/2019/09/09/5eb23306-c807-11e9-be05-f76ac4ec618c_story.html]

* Oklahoma [https://www.enidnews.com/oklahoma/oklahoma-hospitals-sue-thousands-each-year-over-unpaid-medical-bills/article_ff382c58-b9e4-11e9-b658-530193959070.html]

If you’re looking for one article that offers a fairly comprehensive summary of this new trend, you can find it here: https://www.propublica.org/article/thousands-of-poor-patients-face-lawsuits-from-nonprofit-hospitals-that-trap-them-in-debt. Top administrators in Washington, D.C., have even said the practices uncovered by the reports have led to calls for the federal government to take control over the nation’s healthcare system.

Any healthcare network or medical facility that files lawsuits against individuals with unpaid debts needs to be ready for a phone call from their local newspaper or television station, asking questions about why they are suing people who can’t afford to pay their bills.

There is nothing legally wrong with hospitals filing lawsuits against former patients who did not pay their bills. But in the court of public opinion, doing so can be made to look like a heartless corporation, even a non-profit hospital, attacking someone who had an emergency and now has to choose between buying food for his or her family or paying the hospital bill.

Healthcare companies need to have a plan in place to deal with this situation, should it ever arise. In most of the cases, the hospitals that were profiled subsequently announced changes to their policies, some going as far as to announce they will no longer file lawsuits against individuals with unpaid debts or raising the income thresholds to make charity care more widely available to individuals who either do not have insurance or are likely to walk out of a hospital with a debt.

Hospitals and healthcare providers that are using third-party collection agencies or collection law firms especially need to have a conversation with those third parties to coordinate a response should an inquiry ever be made. Collection agencies can be used to receiving these types of calls and may have good insights that can be shared as a response is developed, as well. As with all collection efforts, empathy and understanding are key. Many of the reports have illustrated the lengths that healthcare companies will go to work with individuals to avoid lawsuits. Those efforts need to be highlighted.

Take a page from how others have handled this situation and be approachable and understanding. Newspapers and TV stations do not have to be the only copycats out there.

« back to blog

RSS Feed

 

HCI Fast Facts

  • In business since 1992
  • Only serve healthcare providers
  • Meet HIPAA and PCI DSS compliance standards
  • All employees are trained and certified on their knowledge of the FDCPA, FCRA, TCPA, HIPAA and the emerging CFPB rules
  • Secure client portal
  • Secure patient portal
  • Long-term client relationships
  • Low employee turnover

one of only 70 PPMS Certified collection agencies

PPMS Certified

PPMS is a management system for recovery agencies based upon developing, implementing and adhering to a set of strict industry-specific professional practices and policies.

PPMS certification, much like a SAS-70 audit, requires independent CPA attestation that an agency has in place written policies, procedures, and work processes that ensure regulatory compliance and adherence to industry best practices. The agency must also demonstrate that it has procedures in place to identify and remediate any variance from these. PPMS certified agencies are subject to annual surveillance and must re-certify every five years.

An agency that has voluntarily undergone the PPMS application and certification process is, quite simply, a better business partner than one which has not. This rigorous process results in:


  • Greater productivity/better recoveries
  • Increased efficiency for better customer service
  • Improved data security and physical security
  • Improved solutions to compliance issues
  • Enhanced disaster recovery
  • More effectively trained staff
  • Continuous measurement of client satisfaction
  • Faster resolution of client services issues
  • Company-wide commitment to quality assurance
  • Documented procedures for consistent performance

This strict accreditation insures that you as HCI clients, receive the very best service.

"Clients come to us when good isn't good enough. They demand the best. We love it and wouldn't have it any other way."
— Christian Lehr, VP/COO

 
HCI is a proud member of the following associations:
HCI Associations Recovery and Medical Associations Recovery and Medical Associations