Bill Positions

Bill Number: SB 776

Bill Title: Health Services Cost Review Commission - Financial Assistance and Debt Collection Policies

Bill Sponsor(s): Sen. Della

Subject: Health

Committee: FIN

Bill Summary: This bill will set standards for hospital debt collections by requiring free or reduced care based on patients' incomes and providing information to all patients of the hospitals' assistance policies. The bill will prohibit hospitals from selling bad debts or charging interest on bills of self-pay patients prior to obtaining a court judgment. A knowing violation of the standards will subject a hospital to a fine of up to $50,000 per occurrence. The HSCRC is to establish a workgroup on patient financial assistance and debt collection.

History: SB 776 was enacted as Chapter 310.

Chamber Position: Support W/Amend

Position Summary: The MD Chamber supported greater standardization of charity care and debt collection practices by hospitals and the oversight by the HSCRC of those practices. However, businesses have a vital concern that bad debt and uncompensated care be minimized so that businesses are not unnecessarily burdened with higher hospital rates and health care costs. We recommended that liens should be allowed on primary residences in certain circumstances, and the Chamber should be allowed to participate in the HSCRC workgroup on bad debt collections.

Position Statement: Click here (pdf)

Chamber Staff: Ronald Wineholt

General Assembly: Click here to view the bill on the Maryland General Assembly's website.