Consumer Law In the News

Hospitals Learning Valuable Lesson About Collection Efforts

This article reprinted in the Sun News caught my eye. It seems hospitals are learning from their own mistakes and are revamping their formerly aggressive approaches to patient debt collection efforts. However, the rationale behind the move might be a little more fiscally-minded than ethically-minded. If you’ve never been the target of a hospital or medical institution collection effort, here’s what you missed: “slapping liens on patients’ homes, seizing their bank accounts and arresting a debtor who failed to appear for a court hearing - a tactic called “‘body attachment.’”

I found this quote especially enlightening, from a report written by a credit-industry consultant:

“Companies that emphasize more empathetic and patient-friendly collections processes, invest in collector-training programs and integrate legal compliance efforts thoroughly with collection operations turn regulatory compliance into a competitive advantage and are most likely to succeed in this market over time,” said the report by Kaulkin Ginsberg of Bethesda, Md.

So, hospitals are backing off those aggressive and questionable tactics, not because it’s the right thing to do - not because it’s morally proper - but because it’ll keep them in business longer.

Regardless the reason, it’s a positive move for consumers, who deserve to be treated with respect.

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