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 Us
Ready to supercharge your revenue cycle? Connect with our nationwide HQ—serving Texas providers every day.
Phone: 316-263-1051
Address: 625 W. Maple St., Wichita, KS 67213
