Michigan medical debt collection is a balancing act: the state applies a six-year statute of limitations, licenses every collection agency, and enforces the Michigan Collection Practices Act (MCPA) alongside a 2021 surprise-billing ban. At the same time, shrinking reimbursements leave bigger balances in patients’ hands. Midwest Service Bureau (MSB) equips your revenue-cycle team with a workflow that converts receivables into revenue, without triggering LARA investigations or damaging patient trust. Backed by 55 years of healthcare collections and analytics inside our Expert Analysis portal, we turn aging AR into predictable cash.
Michigan Medical Debt Collection Laws
State-Specific Regulations
- Statute of limitations: Six years on written or oral contracts, including most medical bills (MCL 600.5807). Partial payment or a new written promise restarts the clock.
- Surprise Medical Billing Laws (Public Acts 357–359 of 2020): Out-of-network balances under dispute cannot proceed to Michigan medical debt collection until the insurer-provider arbitration window closes.
- Non-profit charity-care: Hospitals must publicize financial-assistance policies and wait at least 120 days before extraordinary Michigan medical debt collection, mirroring IRS 501(r).
HIPAA & Breach-Notification Requirements
MSB encrypts every byte of PHI, enforces role-based access, and mirrors Michigan’s 45-day breach-notice deadline under the Identity Theft Protection Act (MCL 445.63). Immutable audit logs live in our HIPAA + FDCPA dashboard, ready for inspection.
Licensing & Michigan Collection Practices Act (MCPA)
Michigan’s Occupational Code (MCL 339.901 et seq.) requires a state license and up to a $50k surety bond for agencies. The MCPA (MCL 445.251 et seq.) bans harassment, misrepresentation, and unauthorized fees, and applies to healthcare creditors. MSB’s collectors renew their licenses annually, maintain the requisite bond, and complete yearly MCPA compliance refreshers—so every Michigan medical debt collection call is courteous and lawful.
Credit-reporting note: Michigan has not banned medical tradelines. MSB suppresses reporting at your request and is tracking the CFPB’s proposed 2025 nationwide prohibition.
Our Michigan Medical Debt Collection Process
Phase 1 – Account Review & Validation
We import receivables from Epic, Cerner, or Meditech Self-Pay Recovery, then scrub for duplicate claims, payer denials, charity-care eligibility, surprise-billing holds, and time-barred balances—so only compliant Michigan medical debt collection files move forward.
Phase 2 – Patient Contact & Communication
First notices mail within 24 hours, paired with bilingual charity-care flyers. Voice, SMS, email, and portal outreach respect Michigan’s 8 a.m.–9 p.m. window and MCPA scripting. Patients can self-serve through our Early-Out Patient Collections portal, setting up zero-interest plans in minutes.
Phase 3 – Resolution & Payment Processing
Settlements, HSA draws, and payment-plan drafts post instantly to your PMS; real-time APIs feed finance dashboards. All receipts satisfy MCPA disclosure rules, closing the loop on fully compliant Michigan medical debt collection.
Types of Medical Debt We Collect
Hospital & Health-System Debt
- Emergency-department visits
- Inpatient & outpatient surgeries
- Diagnostic imaging & lab services
- Surgical implants & supplies
Physician-Practice Collections
- Primary-care appointments
- Specialist consults & office procedures
- Ancillary lab/imaging referrals
Specialty Healthcare Debt
- Dental debt collection
- Vision & hearing care
- Mental-health therapy
- Home-health & physical-therapy balances
Benefits for Michigan Healthcare Providers
Improved Cash Flow
Clients using our Michigan medical debt collection workflow cut AR days by 30 %, freeing capital for staffing and technology upgrades.
Compliance Assurance
HIPAA encryption, state-licensed agents, and surprise-billing workflows shield you from LARA scrutiny and negative press.
Patient Relationship Preservation
Empathy-first scripting, transparent billing, and flexible payment options keep Net Promoter Scores high, even during tough Michigan medical debt collection conversations.
Frequently Asked Questions
What is the statute of limitations for medical debt in Michigan?
Six years from the date of the last payment or invoice. A partial payment or a new written promise restarts the six-year clock.
Can medical debt affect my credit score in Michigan?
Yes, unless you request suppression. MSB can withhold reporting, and we’re tracking the CFPB’s proposed nationwide ban.
How does medical debt collection differ from other debt?
Michigan medical debt collection must comply with HIPAA, state licensing, MCPA, surprise-billing arbitration holds, charity-care screening, and the six-year statute, stricter than standard consumer debt.
What should I do if I receive a medical debt collection notice?
Review the itemized bill, compare charges to your Explanation of Benefits, and contact MSB within 30 days to dispute or arrange a payment plan.
Contact Us
Ready to boost your revenue cycle? Reach our nationwide MSB headquarters, serving Michigan providers daily.
Phone: 316-263-1051
Address: 625 W. Maple St., Wichita, KS 67213
