Migliaccio & Rathod LLP is investigating whether North Carolina hospitals and their debt collection companies have improperly pursued patients for medical bills while financial assistance applications were pending or without providing required advance notice.
North Carolina law prohibits hospitals from referring patients’ unpaid bills to collection agencies while the hospital is reviewing an application for charity care or other financial assistance. Hospitals must also provide written notice at least 30 days before referring a bill for collection. In addition, hospitals must require collection companies acting on their behalf to inform patients about available financial assistance policies.
These requirements are intended to prevent patients from facing collection pressure before a hospital has determined whether their bills should be reduced or forgiven. Patients who have applied for financial assistance should not have to navigate collection demands while waiting for the hospital’s decision.
What Consumers May Have Experienced:
- Receiving collection calls or letters while a hospital was still reviewing their financial assistance application;
- Having a medical bill referred to a collection agency before receiving a decision about financial assistance;
- Being sued over hospital debt without receiving the required advance notice;
- Being asked to pay an outstanding balance despite potentially qualifying for charity care;
- Receiving collection demands from a third-party company without being informed about the hospital’s financial assistance program.
Potential Claims May Include:
- Violations of N.C. Gen. Stat. § 131E-91;
- Improper referral of medical bills to collection agencies while financial assistance applications are pending;
- Failure to provide the required advance notice before collection referral;
- Failure to require collection agencies to inform patients about available financial assistance;
- FDCPA violations by third-party collection agencies, where applicable;
- Improper collection of amounts that should have been reduced or forgiven through charity care.
Signs You May Be Affected:
- You submitted a financial assistance or charity care application to a North Carolina hospital;
- Your hospital bill was sent to collections before you received a decision;
- A collection agency contacted you while your application was being reviewed;
- You were referred to collections without receiving at least 30 days’ written notice;
- You were not informed about financial assistance before collection activity began;
- You believe you qualified for charity care but were still pursued for the full amount of your hospital bill.
If a North Carolina hospital referred your medical bill to collections while your financial assistance application was pending, failed to provide required advance notice before collection activity, or pursued you for medical debt despite your potential eligibility for charity care, Migliaccio & Rathod LLP would like to hear from you. Please complete the contact form on this page, send us an email at [email protected], or give us a call at (202) 470-3520.