Undue Medical Debt acquired $30 billion in medical debt belonging to 20 million people from third-party debt buyer Pendrick Capital Partners.
Six things to know:
1. The deal marks the largest acquisition in Undue Medical Debt’s history, according to an April 4 news release. The nonprofit organization was formerly known as RIP Medical Debt before rebranding last year.
2. All payment plans with Pendrick have ended, and unpaid balances for those at or below 400% of the federal poverty level are now erased, Undue Medical Debt said.
3. Sixty percent of the medical debt relief is in non-Medicaid expansion states.
4. The states with the highest amounts of debt in the portfolio acquired by Undue are Texas, Florida, California, Georgia and Oklahoma.
5. The average amount of debt erased is estimated at $1,100 per patient. The highest amount relieved is more than $350,000.
6. The deal allows Pendrick to exit the medical debt collection space. Undue said that if not for its acquisition, the medical debts would have been “sold to a for-profit collection agency and patients would be pursued for the outstanding balances and potentially end up on payment plans.”
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