Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Louise F. Rogers, Chief, San Mateo County Health
Chester J. Kunnappilly, MD, Chief Executive Officer, San Mateo Medical Center
Subject: Agreement with Medical Debt Resolution, Inc for the Sale and Relief of Patient Medical Debt
RECOMMENDATION:
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Adopt a resolution authorizing an agreement with Medical Debt Resolution, Inc dba RIP Medical Debt for the one-time sale and relief of patient medical debt that is determined to be uncollectible.
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BACKGROUND:
San Mateo Medical Center (SMMC) has historically transferred patient medical debt (accounts receivable) that was determined to be difficult to collect to the County's Revenue Services Division. Revenue Services would pursue collection of these receivables on behalf of SMMC and charge a fee for all amounts they collected.
In 2018, Revenue Services discontinued accepting new accounts but continued to pursue collection on accounts it already held in its portfolio, and SMMC began contracting with a third-party collection agency for newly incurred debt. As of June 30, 2022, the Revenue Services portfolio held 172,000 accounts of outstanding patient medical debt, of which 90% are 7-20 years old.
DISCUSSION:
Medical debt is a financial burden for many Americans, particularly for low-income people and communities of color. More than 17% of Americans had an outstanding medical bill in collections in 2020, according to a new study by the Journal of American Medical Association. Medical debt can lead to poor credit scores, housing insecurity wage garnishments, anxiety, and financial stress and is reported to be the number one cause of bankruptcy across the country.
In 2021, Peninsula Health Care District introduced Medical Debt Resolution, Inc dba RIP Medical Debt (RIPMD) to SMMC. RIPMD's mission is to end medical debt for patients by acquiring and relieving the medical debt of persons ex...
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