Debt types › Medical debt
Sell medical debt and healthcare receivables
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Short answer: Hospitals, physician groups and other providers can sell patient receivables, but medical debt usually sells for less than credit card debt. The FTC study found buyers paid less for medical and utility debt than for credit card debt (FTC). HIPAA, state medical-debt laws and credit-reporting limits add steps.
What should sellers consider first?
- HIPAA: share only the minimum necessary data and sign a business associate agreement where required.
- Nonprofit hospitals: IRS §501(r) limits "extraordinary collection actions", and selling debt can count as one. Check with counsel.
- State medical-debt laws are changing fast; some states restrict sales or credit reporting.
- Insurance and financial-assistance screening should be finished before sale.
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What else do sellers ask?
Can medical debt be sold?
Generally yes, subject to HIPAA, state law and, for nonprofit hospitals, IRS §501(r) rules on extraordinary collection actions. Several states have added limits on medical debt sales and reporting, so get legal review before a sale.
Does selling medical debt violate HIPAA?
Not by itself. HIPAA permits disclosures for payment purposes, which covers collection and sale of receivables, but only the minimum necessary data should be shared, under a proper agreement. Confirm the structure with counsel.
How much do hospitals sell debt for?
Usually less than comparable credit card debt. The FTC found lower prices for medical debt, and secondary sources cite under 1 cent for aged medical paper (unverified).
Can a hospital sell your bill to a collection agency?
Hospitals can either place bills with an agency on contingency or sell them outright. Nonprofit hospitals must follow §501(r): a sale to a third party counts as an extraordinary collection action unless the agreement includes specific patient protections.
Information only, not legal, tax or accounting advice. Price figures are third-party estimates, not offers. Last reviewed: October 2026.