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Bill

HB 1324

Hospitals - Medical Debt Collection - Sale of Patient Debt to Nonprofit Organizations

2025 Regular Session Introduced by Marlon Amprey and 11 co-sponsors

Restricts hospital medical debt sales to nonprofit organizations only, potentially reducing aggressive collection practices but limiting hospital revenue from debt monetization.

Hearing 2/26 at 1:00 p.m.
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Bill Summary · HB 1324

Legislative bill overview

HB 1324 permits hospitals to sell patient medical debt exclusively to nonprofit organizations rather than for-profit debt collectors. The bill restricts the secondary market for medical debt by limiting purchasers to nonprofits, which typically have missions focused on debt forgiveness or reduced collection practices. This represents a policy shift in how hospitals can monetize unpaid medical bills.

Why is this important

Medical debt is a leading cause of personal bankruptcy and financial hardship in the United States. By channeling debt sales to nonprofits instead of aggressive for-profit collectors, this bill could reduce predatory collection practices, harassment, and wage garnishment for patients struggling with medical bills. However, it also affects hospital revenue strategies and the financial ecosystem around medical debt.

Potential points of contention

  • Hospital revenue impact: Nonprofit organizations may offer lower prices for debt portfolios than for-profit buyers, potentially reducing hospital revenue from debt sales and affecting their financial margins
  • Nonprofit capacity and incentives: Questions remain about whether existing nonprofits have sufficient capital to purchase hospital debt and whether they would actually forgive/reduce debt or simply become gentler collectors
  • Market limitations: Restricting sales to nonprofits may create a thin market, reducing competition and potentially lowering prices hospitals receive, or creating bottlenecks in debt sales

Compiled from official sources — confirm details with the bill’s official record.

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