Hospitals can sell debt directly to RIP Medical, OIG says

RIP Medical Debt, a nonprofit organization that forgives unpaid medical bills, can now obtain the debt directly from health systems and large physician groups, according to an advisory opinion from HHS’ Office of Inspector General.

The opinion follows a request filed by RIP Medical Debt to expand its medical debt forgiveness program. OIG said when RIP works with health systems and large physician groups that donate or sell their bad debts to RIP, states won’t impose sanctions under federal anti-kickback or civil monetary penalty laws.

Before the opinion, RIP had bought medical debt only from commercial debt buyers that hospitals and physicians sold their debt to. RIP acquired the debt then forgave it. Now, RIP will ramp up its direct engagement with providers, the organization said. 

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