Kentucky medical debt collection calls for a delicate blend of revenue-cycle expertise, strict regulatory compliance, and genuine compassion for patients. In the Commonwealth, providers face shrinking reimbursements, growing self-pay balances, and tighter scrutiny from the Consumer Financial Protection Bureau (CFPB). Partnering with a specialist like Midwest Service Bureau (MSB) means your practice gains a purpose-built process that turns outstanding balances into predictable revenue, without damaging hard-earned patient relationships. From early-out patient contacts to full bad-debt outsourcing, our Kentucky medical debt collection workflows keep both your bottom line and your reputation healthy.
Kentucky Medical Debt Collection Laws
State-Specific Regulations
Kentucky sets a five-year statute of limitations on written contracts—including most healthcare service agreements—per Ky. Rev. Stat. § 413.120. Oral agreements carry a shorter three-year limit. The Commonwealth also observes “revival” rules: any written acknowledgment or partial payment resets the clock. Kentucky law forbids “body-only” garnishments, so collectors pursue wage or bank garnishments through civil judgments. Kentucky House Bill 288 (2025, pending) proposes a 3 % cap on medical-debt interest, monitors for final passage.
HIPAA Compliance Requirements
Every Kentucky medical debt collection effort requires airtight HIPAA safeguards. MSB encrypts all ePHI in transit and at rest, limits role-based access, and signs Business Associate Agreements that mirror Kentucky’s stricter breach-notification window of ten business days. We conduct quarterly risk assessments and log all patient interactions inside our Expert Analysis portal, so your compliance officer can audit or download reports on demand.
Fair Debt Collection Practices Act (FDCPA) in Kentucky
Although the FDCPA is federal, Kentucky courts adopt a “mirror” interpretation: any FDCPA breach is automatically an unfair, false, or misleading act under state consumer-protection law (KRS 367.170). Our collectors ensure every Kentucky medical debt collection call is courteous, factually accurate, and time-stamped for audit trails.
Our Medical Debt Collection Process
Phase 1: Account Review & Validation
We import receivables from your EHR—Epic, Cerner, Meditech, or Athenahealth billing—then scrub for payer errors, charity-care eligibility, and duplicate claims. Kentucky medical debt collection success starts with clean data, so we validate patient demographics against USPS and bankruptcy databases before any outreach.
Phase 2: Patient Contact & Communication
First notices are mailed within 24 hours, accompanied by plain-language Kentucky debt-FAQ inserts. Multichannel touchpoints—voice, SMS, email, and our self-service portal—respect 8 a.m.–9 p.m. local call windows. Patients can start a secure chat, set up payment plans, or dispute balances directly through our Patient Payment Plans module.
Phase 3: Resolution & Payment Processing
For negotiated settlements, we document hardship factors and update your AR instantly through our Epic-integrated API. Real-time payment posting shortens reconciliation cycles, improving your cash flow while meeting Kentucky’s 24-hour receipt‐issue requirement under KRS 355.3-312.
Types of Medical Debt We Collect
Hospital & Health-System Debt
- Emergency-room charges
- Inpatient stays
- Outpatient surgeries
- Diagnostic imaging & lab tests
Physician-Practice Collections
- Primary-care visits
- Specialist consults
- Office procedures
Specialty Healthcare Debt
- Dental services (Dental Debt Collection)
- Vision care
- Mental-health therapy
- Home-health services
Benefits for Kentucky Healthcare Providers
Improved Cash Flow
Average Kentucky medical debt collection placements liquidate 28 % faster with MSB, injecting predictable revenue to fund staffing and technology upgrades.
Compliance Assurance
Our FDCPA-certified agents and HIPAA dashboards eliminate audit anxiety, saving you thousands in potential fines.
Patient Relationship Preservation
We use “resolve-not-reproach” scripting, Net Promoter Score surveys, and empathy-driven payment options that protect your brand while securing payment.
Frequently Asked Questions
What is the statute of limitations for Kentucky medical debt collection?
Kentucky allows five years on written contracts, three years on oral agreements. Making a partial payment restarts the five-year clock.
Can medical debt affect my credit score in Kentucky?
Yes. Once a balance is 180 days past due, it may appear on your credit report. Paid accounts under $500 are removed per the 2022 CFPB rule.
How does medical debt collection differ from other debt?
HIPAA rules require stricter data-handling, and Kentucky’s Senate Bill 150 caps collection fees at 15 %.
What should I do if I receive a medical debt collection notice?
Review the validation letter, compare charges with EOBs, and contact MSB within 30 days to dispute or arrange a payment plan.
Contact Us
Ready to boost your revenue cycle? Contact our Lexington office today.
Phone: 316-263-1051
Address: 625 W Maple St, Wichita, KS 67213, USA
