New Jersey medical debt collection is tricky terrain: the Garden State runs a six-year statute of limitations, forbids “extraordinary” actions for 180 days, and enforces a robust Consumer Fraud Act. Add the 2018 Out-of-Network Transparency Act and the 2024 Louisa Carman Medical Debt Relief Act, and one compliance slip can cost thousands. By partnering with Midwest Service Bureau (MSB), you get a workflow that converts receivables into revenue, without risking Attorney-General penalties or hurting patient trust. Our 55 years of healthcare collections and analytics-driven Expert Analysis portal deliver the predictable cash flow your finance team needs.
New Jersey Medical Debt Collection Laws
State-Specific Regulations
- Statute of limitations: Six years on written and oral contracts, including most medical bills (N.J.S.A. 2A:14-1).
- Louisa Carman Medical Debt Relief Act (July 2024): Medical creditors must wait 180 days from the first post-service bill before any collection action and must screen for charity-care eligibility.
- Out-of-Network Consumer Protection, Transparency, Cost-Containment & Accountability Act (P.L. 2018, c. 32): Disputed out-of-network balances stay out of collections until insurer–provider arbitration ends.
- Hospital Charity-Care Program: Non-profit hospitals must publicize financial-assistance policies and exhaust screening before selling or assigning accounts.
HIPAA & Breach-Notification Requirements
MSB encrypts all PHI at rest and in transit, enforces role-based access, and mirrors New Jersey’s 45-day breach-notice deadline. Immutable audit logs live in our HIPAA + FDCPA dashboard for instant oversight.
Consumer Fraud Act & Debt-Collection Rules
While New Jersey’s proposed Fair Debt Collection Practices Act (S1992) has yet to pass, the New Jersey Consumer Fraud Act (N.J.S.A. 56:8-1 et seq.) already bans false, deceptive, or misleading collection practices. MSB trains every collector yearly on CFA case law and maintains a $25 k surety bond—even though the state does not mandate bonding—to exceed best-practice standards.
Our New Jersey Medical Debt Collection Process
Phase 1 – Account Review & Validation
We import receivables from Epic, Cerner, or Meditech Self-Pay Recovery, then scrub for payer denials, duplicate claims, charity-care eligibility, arbitration holds, and time-barred balances. Only compliant New Jersey 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 New Jersey’s 8 a.m.–9 p.m. window and CFA 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 CFA disclosure rules, closing the loop on fully compliant New Jersey 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 New Jersey Healthcare Providers
Improved Cash Flow
Clients using our New Jersey medical debt collection workflow cut AR days by 30 %, freeing capital for staffing and tech upgrades.
Compliance Assurance
HIPAA encryption, CFA-trained agents, and 180-day grace-period workflows shield you from Attorney-General scrutiny and negative press.
Patient Relationship Preservation
Empathy-first scripting, transparent billing, and flexible payment options keep Net Promoter Scores high, even during difficult New Jersey medical debt collection conversations.
Frequently Asked Questions
What is the statute of limitations for medical debt in New Jersey?
Six years from the service date or the last payment. A partial payment or a new written promise restarts the six-year clock.
Can medical debt affect my credit score in New Jersey?
Yes—until the CFPB’s nationwide ban (effective date pending). MSB suppresses bureau reporting on request.
How does medical debt collection differ from other debt?
New Jersey medical debt collection must follow HIPAA, the Consumer Fraud Act, the 180-day Louisa Carman hold, out-of-network arbitration, and charity-care screening, stricter than ordinary consumer debt.
What should I do if I receive a medical debt collection notice?
Review the itemized bill, check your Explanation of Benefits, and contact MSB within 30 days to dispute or arrange a plan.
Contact Us
Ready to strengthen your revenue cycle? Reach our nationwide MSB headquarters, serving New Jersey providers daily.
Phone: 316-263-1051
Address: 625 W. Maple St., Wichita, KS 67213
