In late April, the Washington Supreme Court issued a decision that impacts how collection agencies handle collection letters for hospital debt in Washington state.
The court ruled in the case Preston v. SB&C, Ltd., it was ruled that any agencies collecting hospital debt are required to provide charity care notifications under Washington law (RCW 70.170.060(8)(a)). In the decision, it was held that collection agencies are “assignees” of the hospital’s and carries the obligation to provide these notices.
In the court’s conclusion, they stated that the requirements of RCW 70.170.060(8)(a) apply to a collection agency collecting on a hospital debt and that the statute’s plain language includes “other written communications concerning billing” in the types of communication required to provide notice of charity care.
What does this mean for collectors in Washington state?
For agencies collecting in Washington state, all collection letters and written communications pertaining to hospital debt must include a charity care notice. The notice must inform patients that they may qualify for free or discounted hospital care.
The statute says that to comply, notices must include the following or substantially similar language in hospital debt collection letters:
“You may qualify for free care or a discount on your hospital bill, whether or not you have insurance. Please contact [Hospital Name]’s financial assistance office at [website] and [phone number].”
It also says that the notice must be:
- Prominently displayed on the first page.
- In English, and the hospital’s service area’s second-most-spoken language.
- Accompanied by the hospital’s actual financial assistance office contact information.
If your hospital or healthcare system works with a collection agency, you will want to make sure they stay in compliance with this decision. It’s best to review and update any and all collection letter templates and ensure they have the correct contact information for your hospital’s financial assistance office. Taking these steps will help make sure your collection agency remains in compliance with the decision. Americollect is prepared for this and similar situations as they arise.
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