Found an issue on this page? Let us know and we will look into it as soon as possible.
Can a hospital turn me over to a collection agency if I am paying on the bill but not as much as they are asking for?
Anonymous9 views4 answers
When my husband had cancer surgery, I notified each medical facility that we were overwhelmed by medical expenses but they each would be paid. Only one hospital said that the amount we were paying wasn't enough. After accepting the checks that we have been mailing, they are saying that the bill is being turned over to a collection agency. Do I have any recourse? I cannot pay them more and continue to pay them all.
Yes they can. No creditor has to renegotiate the deal they originally had with you, and even regular payments don't satisfy some creditors. The collection agency will just increase the pressure, but you don't have to take their calls.
Make sure if you keep making regular payments that you pay whoever actually owns the debt, if your original creditor sell it to someone. While it seems unlikely they'd sue you, it does happen.
Disclaimer: I'm only licensed in CA. Please note that this answer does not constitute legal advice, and should not be relied on, since each state has different laws, each situation is fact specific, and it is impossible to evaluate a legal problem without a comprehensive consultation and review of all the facts and documents at issue. This answer does not create an attorney-client relationship.
The short answer is that they are always allowed to use a collection agency if the bill hasn't been paid in full. You might have an argument that if you reached an agreement with them for payments, and fulfilled that agreement, they cannot require more.
There are limits on what a collection agency can do, and a number of alternatives which you can consider. You might want to arrange a consultation with an attorney, who would review your overall financial situation and discuss your options with you.
I agree with Attorney Koslyn. The hospital could send your unpaid bill to collections. If you cannot make the payments, the most important thing is to keep paying what you can. It is almost never a good idea to stop paying all together.
NOTE: The information above is intended as general legal information based on minimal information, and does not constitute legal advice. This information does not constitute communication with an attorney, nor does it create an attorney-client relationship or any of the privileges that relationship provides.
www.strom-consulting.com
Yes, a hospital can send you to a collection agency, but under the Fair Debt and Collections Act (a federal law), the collection agency must stop calling you if you notify them you are aware of the debt and respresented by counsel.
I recommend you or your attorney obtain a copy of the medical records. Once you have the medical records, you can review them to make certain your husband actually received all the services on the bill. Very often, patients are billed for medications or diagnostic tests they never received. In addition, a good review of the records might reveal potential malpractice claims (especially in Pennsylvania, where the state laws favor plaintiffs in medical malpractice cases), or violations of the JACHO (joint commission for the accredidation of hospitals) rules, or conflicts with Medicare regulations, such as charging for care resulting from "never events," such as urinary catherter related infections or bed sores.
In addition, the new Patient Affordability and Accountability Act (Obanacare) requires not-for-profit hospitals to limit their charges to unfunded patients to an average of their top three highest paying contracts. Therefore, when your husband had the surgery and whether the hospital was a not-for-profit hospital are important considerations as well.
