Legal Question in Credit and Debt Law in Washington

payments to a hospital

I had a procedure done at the hospital. Once they billed me I started paying them a montly payment. not missing any. They sent me to a collection agency who demanded I pay the remaining amount in 30 days or it would result in a negative on my credit. When I called the hospital to find out why they sent me to collections, they explained that they could do that even though I made my montly payments. Is this legal.


Asked on 7/11/07, 7:40 pm

1 Answer from Attorneys
Elizabeth Powell ELizabeth Powell PS Inc

Re: payments to a hospital

I answered this question very carefully yesterday, but apparently it has not posted.

You need to read budhibbs dot com so you can have a fresh perspective on collection agencies.

The hospital accounting office can only carry your account receivable as an asset on their books for six months. After that, it cannot be counted as an asset.

Therefore it is in their interest to get rid of it and allow some other entity to deal with you.

So yes, what they are doing is 'legal' even if highly irritating.

Remember the hospital gives up 50% of the debt to the collection agency in consideration of the collection agency's efforts.

So, when you give money to the collection agency it is going into their pocket, then half to the hospital.

Budhibbs dot com is the best explanation I know of.

Hope this helps. Elizabeth Powell

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Answered on 7/12/07, 10:42 am


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