Washington medical debt collection today means threading a needle: providers must wait 120 days before assigning accounts, cap post-judgment interest at 9 %, and screen patients for the state’s newly expanded charity-care program—all while surprise-billing disputes and a strict credit-reporting hold slow recoveries. Midwest Service Bureau (MSB) delivers a Washington medical debt collection workflow that turns self-pay balances into predictable revenue without drawing the ire of the Attorney General. With 55 years of healthcare focus and real-time analytics in our Expert Analysis portal, we help Evergreen-State providers collect faster and compliantly.
Washington Medical Debt Collection Laws
State-Specific Regulations
- Statute of limitations: Six years on written contracts (RCW 4.16.040) and three years on open-account or oral debts (RCW 4.16.080). A partial payment or a new written promise restarts the six-year clock.
- HB 1531 (2019):
- Hospitals must wait 120 days from the first post-service bill before assigning or selling medical debt.
- Post-judgment interest on medical debt is capped at 9 % (vs. 12 % default).
- Agencies must wait 180 days before furnishing medical debt to credit bureaus.
- Charity-Care Expansion (HB 1616, 2022): Non-profit hospitals must provide free or discounted care to patients ≤ 400 % FPL and exhaust screening before “extraordinary” Washington medical debt collection actions.
- Balance Billing Protection Act (RCW 48.49): Out-of-network balances under dispute stay out of collections until payer–provider arbitration ends.
- Hospital Price-Transparency Tie-In (RCW 70.41.470): Non-compliant facilities cannot pursue legal collection remedies on undisclosed service prices.
HIPAA & Breach-Notification
MSB encrypts all PHI in transit and at rest, enforces role-based access, and mirrors Washington’s 30-day breach-notice deadline (RCW 19.255.010). Immutable audit logs live inside our HIPAA + FDCPA compliance hub.
Licensing, RCW 19.16, and Consumer Protection
The Washington Collection Agency Act (RCW 19.16) requires agencies to hold a state license and a $10 000–$50 000 surety bond. Violations double as unfair acts under the Consumer Protection Act (RCW 19.86). MSB renews its license yearly, maintains bonding, and trains every collector on RCW 19.16 and HB 1531—so every Washington medical debt collection call is courteous and lawful.
Credit-reporting note: Washington’s 180-day hold remains in force; the CFPB’s nationwide tradeline ban (finalized 2025) is still pending. MSB suppresses reporting on request.
Our Washington Medical Debt Collection Process
Phase 1 – Account Review & Validation
We ingest receivables from Epic, Cerner, or Meditech Self-Pay Recovery and scrub each file for payer denials, duplicate claims, charity-care eligibility, surprise-billing holds, and time-barred balances, ensuring only compliant Washington medical debt collection accounts move forward.
Phase 2 – Patient Contact & Communication
First notices mail within 24 hours and include bilingual charity-care summaries. Voice, SMS, email, and portal outreach respect Washington’s 8 a.m.–9 p.m. window, 180-day credit-report hold notice, and RCW 19.16 scripting rules. 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 HB 1531 disclosure standards, closing the loop on fully compliant Washington 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 visits
- 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 Washington Healthcare Providers
Improved Cash Flow
Clients using our Washington medical debt collection workflow cut AR days by 30 %, freeing capital for staffing and tech upgrades.
Compliance Assurance
HIPAA encryption, state-licensed agents, 9 % interest-cap workflows, and charity-care screening keep you clear of AG scrutiny and media backlash.
Patient Relationship Preservation
Empathy-first scripting, transparent billing, and flexible payment options keep Net Promoter Scores high, even during tough Washington medical debt collection conversations.
Frequently Asked Questions
What is the statute of limitations for medical debt in Washington?
Six years for written contracts (three for open accounts). A partial payment or a new written promise restarts the six-year clock.
Can medical debt affect my credit score in Washington?
Only after 180 days, MSB can suppress reporting on request. A federal tradeline ban may eliminate reporting entirely (effective date pending).
How does medical debt collection differ from other debt?
Washington medical debt collection must comply with HIPAA, RCW 19.16 licensing, HB 1531 interest & timing rules, surprise-billing holds, charity-care screening, and the six-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 plan.
Contact Us
Ready to strengthen your revenue cycle? Reach our nationwide MSB headquarters, serving Washington providers daily.
Phone: 316-263-1051
Address: 625 W. Maple St., Wichita, KS 67213
