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Sen. Bush’s bill would limit hospital debt collection and require notice before closures; authors, advocates urge fixes
Summary
SB 225 would bar hospitals and debt collectors from pursuing medical debt when hospitals aren’t compliant with specified reporting and transparency statutes, require DOH compliance reviews and 120 days’ notice before service-line reductions; sponsors and witnesses agreed to pursue technical amendments before further action.
Sen. Bush introduced Senate Bill 225 to curb aggressive medical-debt collection tied to hospital compliance and to require advance notice for major service-line reductions and closures.
The bill would prevent a hospital, debt collector or third party from pursuing medical debt when the hospital is out of compliance with a set of reporting and transparency requirements; it directs the Department of Health to determine hospital compliance and authorizes the attorney general to suspend a hospital’s ability to collect medical debt while noncompliance persists. It also creates civil penalties, restitution and notice requirements, including 120 days’ advance notice before long-term service-line reductions or closure, with waivers allowed for emergencies.
Rachel Sportward, chief of policy for…
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