Virginia medical debt collection is a tight-rope walk: the Commonwealth enforces a five-year statute of limitations on written contracts, bars hospital liens on a patient’s home, caps judgment interest at 6 %, and requires nonprofit facilities to screen every patient for charity care. Add Virginia’s 2021 Balance-Billing Protection Act and aggressive oversight from the Attorney General’s Consumer Protection Section, and one slip can cost thousands. By partnering with Midwest Service Bureau (MSB), you secure a Virginia medical debt collection workflow that converts receivables into predictable revenue, without harming patient trust or triggering VCPA penalties. Backed by 55 years of healthcare collections and live analytics in our Expert Analysis portal, we keep your cash flow and reputation healthy.
Virginia Medical Debt Collection Laws
State-Specific Regulations
- Statute of limitations – Five years on written contracts (Va. Code § 8.01-246) and three years on oral/open accounts (§ 8.01-246(4)); any partial payment or signed promise restarts the clock.
- Hospital debt-relief package (HB 573/SB 561, 2020) – Bars liens on a patient’s primary residence, limits wage-garnishment to 25 % of disposable earnings, and caps judgment interest on medical debt at 6 %.
- Charity-Care & Payment Plans (Va. Code § 32.1-137.08) – Nonprofit hospitals must:
- Offer free care to patients ≤ 200 % FPL and discounts up to 400 % FPL.
- Provide 12-month, zero-interest payment plans on request.
- Wait 60 days after the first post-service bill before “extraordinary collection actions.”
- Balance Billing Protection Act (Va. Code § 38.2-3445.01) – Out-of-network balances under dispute stay out of collections until payer–provider arbitration concludes.
HIPAA & Breach-Notification
MSB encrypts all PHI in transit and at rest, applies role-based access, and follows Virginia’s 30-day breach-notice rule (Va. Code § 18.2-186.6). Immutable audit logs live in our HIPAA + FDCPA compliance hub, ready for inspection.
VCPA, FDCPA & Licensing
Virginia has no separate collection-agency license, but the Virginia Consumer Protection Act (VCPA, Va. Code § 59.1-196 et seq.) makes any “fraudulent, deceptive, or misleading” practice actionable, with treble damages. MSB’s collectors complete annual VCPA & FDCPA refreshers and maintain a voluntary $25 000 bond for added assurance, ensuring every Virginia medical debt collection call is courteous and lawful.
Credit-reporting note: Virginia has not banned medical tradelines; MSB suppresses reporting on request and is tracking the CFPB’s proposed 2025 nationwide prohibition.
Our Virginia Medical Debt Collection Process
Phase 1 – Account Review & Validation
We import receivables from Epic, Cerner, or Meditech Self-Pay Recovery, then scrub each file for payer denials, duplicate claims, charity-care eligibility, surprise-billing holds, and time-barred balances—so only compliant Virginia medical debt collection accounts advance.
Phase 2 – Patient Contact & Communication
First notices mail within 24 hours and include bilingual charity-care summaries. Voice, SMS, email, and portal outreach respect Virginia’s 8 a.m.–9 p.m. window and VCPA 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 VCPA disclosure standards and the 6 % statutory-interest cap, closing the loop on fully compliant Virginia 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 Virginia Healthcare Providers
Improved Cash Flow
Clients using our Virginia medical debt collection program cut AR days by 30 %, freeing capital for staffing and tech upgrades.
Compliance Assurance
HIPAA encryption, 6 % interest-cap workflows, and charity-care screening shield you from AG scrutiny and negative press.
Patient Relationship Preservation
Empathy-first scripting, transparent billing, and flexible payment options keep Net Promoter Scores high, even during challenging Virginia medical debt collection conversations.
Frequently Asked Questions
What is the statute of limitations for medical debt in Virginia?
Five years for written contracts, three for oral/open accounts; a partial payment or new written promise restarts the five-year clock.
Can medical debt affect my credit score in Virginia?
Yes—medical tradelines may still appear. MSB can suppress reporting on request and will adjust when federal rules change.
How does medical debt collection differ from other debt?
Virginia medical debt collection must observe HIPAA, VCPA, a 6 % judgment-interest cap, hospital lien & garnishment limits, charity-care screening, and the five-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 with your Explanation of Benefits, and contact MSB within 30 days to dispute or arrange a payment plan.
Contact Us
Ready to strengthen your revenue cycle? Reach our nationwide MSB headquarters, serving Virginia providers every day.
Phone: 316-263-1051
Address: 625 W. Maple St., Wichita, KS 67213
