If you’re considering partnering with a debt collection agency to streamline your healthcare accounts receivable, HIPAA compliance is a top priority. Capital Recovery Corp is a HIPAA-compliant healthcare debt collection agency ready to answer your questions.
Isn’t it Against HIPAA to Send a Debt to Collections?
No, working with a debt collection agency is not a violation of HIPAA laws. Like many aspects of doing business in healthcare, it can be done. But it has to be done right. Here’s what the HIPAA Journal has to say on this important question (emphasis added):
“It is not a HIPAA violation to send to collections provided the minimum necessary Protected Health Information is disclosed and – if using an external collection agency – a Business Associate Agreement is in place with the collection agency. However, before sending medical bills to collections, it is important to consider state and local laws relating to medical debt relief.”
In short, debts can be collected using the minimum amount of Protected Health information (PHI) required to complete payment. Examples include patient name, address, account number, date of service, and amount owed. On the other hand, it’s illegal/in violation of HIPAA to share or discuss diagnostic or treatment information when collecting medical debt. Your agency will define those terms with you, with the required Business Associate Agreement, in accordance with applicable state and local laws.
Other Considerations for Healthcare Debt Collection
When reviewing your options, bear in mind that your healthcare debt collection agency may be limited in scope by state medical debt relief laws, as well as PHI protections. Some states have capped medical debt to avoid putting families under extreme financial hardship. Others make special provisions for veterans, and some clinics provide thier own financial aid and debt forgiveness programs.
Because healthcare regulations are always changing, especially regarding debt collection laws, we recommend seeking independent compliance advice from your legal department before entering into any Business Assocuate Agreement with a healthcare debt collection agency.
It’s also important to do your due diligence about the agency itself. What is their reputation in the industry? How well do they perform for their healthcare clients? And what steps to they take to inform consumers about their rights and protections under the law? Factors like these can help you make a confident, informed decision that sets you up for success.
A Trusted Partnership Starts Here
When it comes to investing in third-party debt collection and extended business office solutions for your healthcare clinic, your patients’ privacy, and the future of your clinic, are more than worth the effort. Capital Recovery Corp is a trusted debt collection partner for urgent care clinics, doctor’s offices, and therapy practices. If you’ve been looking to safely and securely streamline operations, why not start with your accounts receivable? Book a consultation with us today to explore the possibilities.
Note: This blog is for informational purposes only, and does not constitute legal advice.
We follow the Fair Debt Collection Practices Act (FDCPA) and are HIPAA compliant.
Capital Recovery Corporation – NMLS No. 1666542
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