Tennessee medical debt collection is no longer a “business-as-usual” task. The Volunteer State enforces a six-year statute of limitations, licenses every collection agency through the Tennessee Collection Service Board, and polices “unfair or deceptive” conduct under the Tennessee Consumer Protection Act (TCPA). The 2021 Surprise Billing law further keeps disputed out-of-network balances out of collections until payer–provider arbitration ends. One compliance misstep can invite fines—or worse, damage hard-won patient relationships. Partnering with Midwest Service Bureau (MSB) gives you a Tennessee medical debt collection workflow that converts receivables into revenue, without triggering Board sanctions or TCPA penalties. With 55 years in healthcare collections and analytics inside our Expert Analysis portal, we keep your cash flow and reputation healthy.
Tennessee Medical Debt Collection Laws
State-Specific Regulations
| Key Rule | Requirement | Citation* |
|---|---|---|
| Statute of limitations | 6 years on written contracts & open accounts; partial payment or a new written promise restarts the clock | T.C.A. § 28-3-109 |
| Surprise Billing (HB 1246, 2021) | Disputed OON balances stay out of collections until arbitration concludes | T.C.A. § 56-7-2406 |
| Charity-Care Screening | Non-profit hospitals must offer discounts/free care ≤ 200 % FPL and wait 120 days before “extraordinary” actions (mirrors IRS 501(r)) | Tenn. Rules & Regs. 1200-08-29 |
| Post-judgment interest | 7.25 % (floating statutory rate) unless the contract specifies less | T.C.A. § 47-14-121 |
*Compiled from Tennessee Code and Department of Commerce & Insurance rules (2025).
HIPAA & Breach-Notification
MSB encrypts all PHI in transit and at rest, applies role-based access, and mirrors Tennessee’s 45-day breach-notice deadline (T.C.A. § 47-18-2107). Immutable audit logs live in our HIPAA + FDCPA compliance hub.
Licensing, TCPA & FDCPA
The Tennessee Collection Service Act (T.C.A. § 62-20-101 et seq.) requires agencies to:
- Hold a state license (renewed every June 30).
- Maintain a $25 000 surety bond.
- File annual trust-account audits.
Violations also constitute unfair acts under the Tennessee Consumer Protection Act (T.C.A. § 47-18-104), carrying treble-damage exposure. MSB renews its license and bond annually, then trains every collector on both TCPA and FDCPA, ensuring every Tennessee medical debt collection call is courteous, accurate, and fully documented.
Credit-reporting note: Tennessee has not banned medical tradelines. MSB suppresses bureau reporting on request and is monitoring the CFPB’s proposed 2025 nationwide prohibition.
Our Tennessee Medical Debt Collection Process
| Phase | What We Do | Result |
|---|---|---|
| 1 – Account Review & Validation | Pull receivables from Epic, Cerner, or Meditech Self-Pay Recovery; scrub for payer denials, duplicate claims, charity-care eligibility, surprise-billing holds, and time-barred balances | Only clean, compliant Tennessee medical debt collection files advance |
| 2 – Patient Contact & Communication | First notices mail in 24 h with bilingual charity-care flyers. Voice, SMS, email, and portal outreach follow Tennessee’s 8 a.m.–9 p.m. window and TCPA scripting. Self-service via our Early-Out Patient Collections portal enables zero-interest plans in minutes | Higher right-party contacts, lower complaints |
| 3 – Resolution & Payment Processing | Settlements, HSA draws, and payment-plan drafts post instantly to your PMS; APIs feed real-time dashboards. All receipts reflect Tennessee’s floating post-judgment rate and TCPA disclosures | Faster cash, audit-ready documentation |
Types of Medical Debt We Collect
Hospital & Health-System Balances
- Emergency-department visits
- Inpatient & outpatient surgeries
- Diagnostic imaging & lab services
- Surgical implants & supplies
Physician-Practice Debt
- 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 Tennessee Healthcare Providers
- Improved Cash Flow – Clients using our Tennessee medical debt collection workflow trim AR days by 30 %, freeing capital for staffing and tech upgrades.
- Compliance Assurance – HIPAA encryption, state licensing, and surprise-billing holds shield you from audits and PR fallout.
- Patient Relationship Preservation – Empathy-first scripting, transparent billing, and flexible payment options keep Net Promoter Scores high, even during difficult conversations.
Frequently Asked Questions
What is the statute of limitations for Tennessee medical debt collection?
Six years from the last payment or invoice; a new payment or written promise restarts the six-year clock.
Can medical debt affect my credit score in Tennessee?
Yes—medical tradelines may still appear. MSB can suppress reporting on request, and we will adjust when federal rules change.
How does medical debt collection differ from other debt?
Tennessee medical debt collection must respect HIPAA, state licensing, TCPA, surprise-billing arbitration holds, charity-care screening, and the six-year statute, stricter than ordinary 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 plan.
Contact Us
Ready to strengthen your revenue cycle? Reach our nationwide MSB headquarters, serving Tennessee providers daily.
Phone: 316-263-1051
Address: 625 W. Maple St., Wichita, KS 67213
