Some New Mexico hospitals suing over medical debt despite law, report alleges

Some New Mexico hospitals are accused of disregarding a state law protecting low-income patients from medical debt collection, according to NM Political Report. 

Advertisement

The law that went into effect in July 2021 requires hospitals to verify that a patient’s income status doesn’t fall below 200 percent of the federal poverty line before suing or sending the bill to a collection agency, according to the report. 

But Nicolas Cordova, an attorney for the New Mexico Center on Law and Poverty, told NM Political Report there are hospitals that are not verifying income status before seeking collection. He declined to name the hospitals. 

A spokesperson for the New Mexico Attorney General’s Office said the office has received multiple complaints about providers’ noncompliance, according to the report. No formal legal actions have been filed, but two hospitals that file the most medical debt lawsuits are being  investigated, according to the report. 

At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.

Advertisement

Next Up in Financial Management

Advertisement

Comments are closed.