This 2-Minute Personal Injury Healthcare Tip for Medical Offices is about protecting your business from huge risk and potential gigantic loss.
Do NOT Report Patient Medical Debt to Credit Reporting Agencies
There is an attack on independent medical practices going on around this country.
Currently, about 15 states have passed laws which say, in effect, that if you report medical debt to a credit reporting agency, such as say Equifax, your bill is void and unenforceable. That’s right: you lose any right to collect that debt owed even if you provided amazing medical care for your patient.
California went a step farther, and those medical offices in California need to take immediate action. In California, for every patient you are treating as of July 1, 2025 and going forward, if you don’t have a specific provision in your patient financial responsibility documentation and agreements—even if you never have or ever would report a patient’s debt to a credit reporting agency—your bill is void and unenforceable. That’s right: just not having that sentence in your documentation in California has you losing any right to collect on that debt.
This is part of an ongoing attack on independent medical practices.
The bottom lines:
If in California, you need to take action now and get that provision in your financial responsibility agreements.
If you are in one of the states that has passed related laws, make sure not to report medical debt.
And if you are in a state where no such law currently exists, monitor to see if your state plans to and if so speak up! Stop the attack on independent medical practices. This is your business, your mission, your life.
And I’ll see YOU at the next 2MMM!
