Legal Question in Credit and Debt Law in California

I'm trying to start a Non-profit organization that raises money for individuals who don't have enough to pay for treating their diseases (such as cancer treatments, etc.) or that helps pull people out of debt caused by having to pay for medical treatments.

Upon doing research, I know I cannot request medical records to verify if people are telling the truth about their current status due to the HIPAA law. Because of this, I have decided to withhold all money raised for the individual from the individual. Instead of writing them a check, I will write a check to the organizations whom are owed money from that individual.

My question is this:

What are my options when it comes to handling money on behalf of an individual in paying for medical bills or credit debt? I'm a bit confused on the legalities of paying for these things as a third party. What do I need to do to make sure I can provide the money raised for that individual to these organizations that are owed without running into any legal disputes concerning privacy or any other facet of the law?

Thank you for your time and expertise.


Asked on 10/11/11, 1:16 am

1 Answer from Attorneys
David Gibbs The Gibbs Law Firm, APC

I would be less-concerned with the mechanics of paying these bills, and more concerned with how to do this and remain within the legal boundaries of a 501(c)(3) nonprofit. You need to consult with an attorney who represents nonprofit entities. Also, the individuals receiving assistance can place the nonprofit's name in their HIPPAA disclosures as authorized to receive medical information - I think it is necessary to even see their billing statements.

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Answered on 10/14/11, 4:52 pm


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