Medical Debt Collection in Texas

MSBureau is the premier medical debt collection agency serving large and small Texas providers. We deliver compliant recovery solutions, maximizing revenue while safeguarding your patient relationships.

Medical Debt Collection Expert

Texas Medical Debt Collection & Healthcare Revenue Recovery

Texas healthcare debt recovery demands a careful balance of compliance, compassion, and revenue-cycle expertise. Hospitals and clinics across Houston, Dallas, Austin, and San Antonio face rising self-pay balances while navigating some of the strictest consumer-protection rules in the nation. Efficiently collecting outstanding balances without damaging patient trust or violating Texas law is a critical challenge.

Partnering with Midwest Service Bureau (MSB) provides a tailored, compliant Texas medical debt collection program. Our 55 years of experience, combined with our analytics-powered Expert Analysis Portal, helps healthcare providers anticipate, manage, and resolve delinquent accounts efficiently — all while maintaining patient goodwill and minimizing regulatory risk.

Our Proven Medical Debt Collection Process — Texas

MSB’s structured approach ensures every account is validated, communicated with care, and resolved within HIPAA, TDCA, and Texas Finance Code regulations.

Phase 1: Account Review & Validation

Import receivables from Epic, Cerner, Meditech, or Athenahealth platforms.
Audit accounts for payer denials, duplicate claims, SB 490 itemized-billing compliance, and nonprofit charity-care eligibility.
Ensure accurate patient demographics and purge accounts outside the four-year statute of limitations for written contracts (Tex. Civ. Prac. & Rem. Code §337).

Phase 2: Patient Communication & Engagement

Dispatch initial notices within 24 hours, including plain-language financial-assistance flyers per Health & Safety Code §311.045.
Leverage omnichannel outreach — phone, SMS, email, and Early-Out Patient Collections portal — during Texas’s 8 a.m.–9 p.m. contact window.
All scripts comply with TDCA, FDCPA, and hospital charity-care rules, ensuring professional, respectful outreach.

Phase 3: Resolution & Payment Processing

Offer no-interest payment plans via secure patient portals for immediate enrollment.
Real-time API integration posts settlements to your PMS and finance dashboards, improving cash flow visibility.
Receipts and settlement documentation meet Texas Finance Code disclosure requirements, maintaining a fully compliant audit trail.

Turning Debt Challenges into Recovery Opportunities

Types of Medical Debt We Collect

Hospital & Health-System Debt

Physician-Practice Collections

Specialty-Healthcare Debt

Why Choose Us for Medical Debt Collection in Texas

Accelerated Cash Flow
MSB’s Texas medical debt collection programs reduce AR days by up to 30%, allowing providers to reinvest in staffing, technology, and patient services.
Compliance Confidence
We enforce HIPAA encryption, TDCA bonding, and SB 490 itemized-billing workflows, mitigating audit risk and protecting your organization from fines or legal exposure.
Patient-Focused Approach
Our “empathy-first” scripts and transparent repayment options maintain patient satisfaction, even during difficult collection conversations.

Compliance, Security & Professional Standards

State-Specific Regulations

Statute of Limitations: Four years for written contracts and promissory notes (Tex. Civ. Prac. & Rem. Code §337). Partial payments only restart the clock if a new written promise is made.
Itemized Billing: SB 490 (2023) requires hospitals to issue detailed bills before collection; noncompliance voids interest or late fees.
Charity Care: Nonprofit hospitals must document denials and offer financial assistance before selling or assigning accounts (Health & Safety Code §311.045).
TDCA Bonding: Agencies must maintain a $10,000 surety bond under Texas Finance Code Chapter 392.
Credit Reporting: CFPB’s 2025 ban is paused in Texas; MSB suppresses bureau reporting until the rule is fully in effect.

HIPAA Compliance Requirements

All Texas medical debt accounts include PHI secured with AES-256 encryption, role-based access, and detailed audit logs. Business Associate Agreements incorporate Texas’s 72-hour breach-notification window, ensuring full HIPAA alignment.

TDCA & FDCPA Compliance

MSB collectors complete annual TDCA recertification and follow FDCPA standards. Scripts, disclosures, and contact timing are monitored for full compliance with Texas Finance Code and federal regulations.

Our Track Record

Average recovery rate

0 %

Day Average

Accounts

Resolution

0 %

Our Track Record

93%

Average recovery rate

34

Day Average

4,812

Accounts

93%

Resolution

What Our Client Say

Discover the experiences of our satisfied clients. Hear firsthand Midwest Service Bureau Reviews on how MSB has delivered reliable, results-driven solutions that make a real difference.

Midwest Service Bureau is a company that truly looks out for the greater good of their client. They want to see their clients thrive, even if that means they do not make a profit. Any time I have ever had a question I call Midwest and they have the answer. Any time I have needed advice they have been there for me and have guided me through the process. Their customer service is outstanding and their work ethic is even better! I couldn’t imagine a time when I wouldn’t need them.

The team at Midwest Service Bureau has earned our trust for over 10 years based on their service, results, performance, and rates and that’s why they will continue to receive all our collection business. They deliver excellent customer service with quick responses, unlimited willingness to lend their assistance, ethical work values, and even training seminars that provide us with other processes and tools to reduce our collections activity. On top of that, I enjoy the relationships I have made with the people of MSB over the years. I have no reservation in recommending Midwest Service Bureau to others.

We have been doing business with Midwest Service Bureau for a while now. They have an extremely high recovery rate. They are always right on top of things, and get the job done. We have other credit services calling us but, we always tell them that we are happy with who we are using. We would highly recommend them to anyone.

Our office has had a great experience with Midwest Service Bureau. The staff is very helpful and knowledgeable, always available to answer questions. Our representative comes into our office once a month to check in and see how things are going for us. If we have any questions or issues they take the time to get them resolved. Midwest also offers training for the staff. We did take advantage of this opportunity and it was very helpful to the staff members that had no previous experience with collections. Through the training, the front office staff learned what information they should be gathering and the importance of it. I would highly recommend Midwest Service Bureau if you are looking for a collection agency.

I have been employed with Sunflower Bank for over 20 years as the collection manager, and during that time have dealt with Midwest Service Bureau, LLC regarding collection accounts to include credit cards, loans, and deposit accounts. I have also dealt with them prior to coming to Sunflower Bank when I worked for GMAC out of Wichita, KS for roughly ten years. Micki Kell who is the President of this organization and her staff have provided wonderful customer service the entire time. A representative from the organization always contacted us in person once a month, and the face-to-face contact was always greatly appreciated. Their staff was always available to answer any questions or address any concerns we had. Their software program was very user friendly and make it an easy way to communicate regarding accounts. I would definitely recommend this organization if you are looking for a company to handle your collection accounts.

Frequently Asked Questions

What is the statute of limitations for medical debt in Texas?

Four years for written contracts; suits filed after this period are generally dismissed. Partial payments do not restart the clock unless a new written acknowledgment is signed.

Can medical debt affect my credit score in Texas?

Currently, medical tradelines may appear on credit reports. The CFPB’s 2025 medical debt ban is paused in Texas and may take effect later.

How does medical debt collection differ from other debt types?

Texas medical debt collection must comply with HIPAA, TDCA, SB 490 itemized billing, and nonprofit charity-care rules, making it more stringent than general consumer debt.

What should I do if I receive a medical debt collection notice?

Review your itemized bill, compare it with your Explanation of Benefits, and contact Midwest Service Bureau within 30 days to dispute errors or arrange a payment plan.

Related Services

Contact Our Debt Collection Team

Ready to improve your healthcare organization’s revenue cycle? Contact our specialists today.

Phone: 316-263-1051
Address: 625 W. Maple St., Wichita, KS 67213

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Texas medical debt collection is a balancing act: the Lone Star State enforces some of the nation’s toughest consumer protections while hospitals wrestle with ballooning self-pay balances. By choosing Midwest Service Bureau (MSB), your organization secures a Texas medical debt collection program that converts receivables into revenue, without harming patient trust or triggering Texas Finance Code penalties. Our 55 years of experience and analytics-driven Expert Analysis portal give you the insight to predict, prevent, and pursue delinquent accounts with surgical precision.

Texas Medical Debt Collection Laws

State-Specific Regulations

Statute of limitations: Four years on written contracts and promissory notes (Tex. Civ. Prac. & Rem. Code §337)
Itemized-billing rule (SB 490, 2023): Hospitals must supply a detailed bill before initiating Texas medical debt collection. Non-compliance voids interest or late-fee claims
Charity-care mandate (Health & Safety Code §311.045): Non-profit hospitals must offer defined financial assistance and document denials before selling or assigning accounts

HIPAA Compliance Requirements

Every Texas medical debt collection file carries protected health information. MSB encrypts ePHI at rest and in motion, enforces role-based access controls, and mirrors Texas’s 72-hour breach-notification window in our Business Associate Agreement. Detailed audit logs live inside our HIPAA + FDCPA Compliance hub.

Texas Debt Collection Act (TDCA) & FDCPA

The TDCA (Texas Finance Code Chapter 392) extends FDCPA-style rules to all creditors, not just third-party agencies, and requires a $10,000 surety bond for agencies operating in the state. MSB’s collectors complete annual TDCA recertification and maintain the required bond on file with the Secretary of State.

Credit-reporting note: The CFPB’s 2025 national ban on reporting medical debt is currently paused by a federal court in the Eastern District of Texas. MSB therefore suppresses bureau reporting unless and until the rule takes full effect.

Our Texas Medical Debt Collection Process

Phase 1: Account Review & Validation

We ingest AR directly from Epic, Meditech Self-Pay Recovery, or any EHR, then scrub for payer denials, charity-care eligibility, duplicate claims, and SB 490 billing-rule compliance. Clean data is the bedrock of compliant Texas medical debt collection.

Phase 2: Patient Contact & Communication

First notices go out within 24 hours, paired with plain-language financial-assistance flyers. Calls, SMS, and email touchpoints follow Texas’s 8 a.m.–9 p.m. windows, and all scripts meet both TDCA and FDCPA standards. Patients can self-serve via our Early-Out Patient Collections portal, setting up no-interest plans in minutes.

Phase 3: Resolution & Payment Processing

Negotiated plans and settlements post instantly to your PMS, and real-time APIs feed results to your finance dashboards. All receipts satisfy Texas Finance Code disclosure rules, closing the loop on fully compliant Texas medical debt collection.

Types of Medical Debt We Collect

Hospital & Health-System Debt

ED visits, inpatient, and outpatient surgery
Diagnostic imaging & lab work

Physician-Practice Collections

Primary-care appointments
Specialist consults & office procedures

Specialty Healthcare Debt

Dental debt collection
Home-health, mental-health, vision, and therapy balances

Benefits for Texas Healthcare Providers

Improved Cash Flow

Clients who outsource Texas medical debt collection to MSB reduce AR days by 30 % on average, unlocking capital for staffing and tech upgrades.

Compliance Assurance

HIPAA encryption, TDCA bond coverage, and SB 490 itemized-billing workflows shield you from fines or PR fallout.

Patient Relationship Preservation

Empathy-first scripting and transparent payment options keep Net Promoter Scores high, even during challenging Texas medical debt collection conversations.

Frequently Asked Questions

What is the statute of limitations for medical debt in Texas?

Four years for written contracts; courts dismiss suits filed after that window. Partial payments do not reset the clock unless a new written promise is signed.

Can medical debt affect my credit score in Texas?

Today, yes—medical tradelines may still appear. However, a CFPB rule banning all medical debt from credit reports is paused in a Texas federal court and could take effect later in 2025.

How does medical debt collection differ from other debt?

Texas medical debt collection must comply with HIPAA, TDCA, SB 490’s itemized billing, and nonprofit hospital charity-care rules, stricter than general 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 Our Texas Medical Debt Collection Team

Seeking quicker recoveries with patient-focused compliance? Connect with our Texas experts today.

Phone: 316-263-1051
Address: 625 W. Maple St., Wichita, KS 67213