Patients finding novel solutions to address their medical debt

Sep 12, 2014 | Healthcare Accounts Receivable

As Americans continue to shoulder more of the burden of the cost of their medical care, many are finding innovative solutions to address their medical debt. Excessive medical debt can not only create stress, it can also affect sufferers ability to buy a car, own a home or make any major purchase.

A 2013 study by NerdWallet, a financial guidance site, found that the majority of bankruptcies in the U.S are caused by medical debt. To avoid this result, many lenders have begin offering loans specifically for medical debt. 

For those with medical debt that do not qualify for government assistance through either the Medicare or Medicaid programs, borrowing the funds necessary to address their medical debt is becoming increasingly popular. These agreements have lower borrowing costs than credit cards, and some non-profits and medical bill assistance organizations might offer low-interest or zero-percent loans to cover health care costs.

Another novel solution to medical debt is crowdfunding. This involves raising money, usually over the internet, from a large number of people. Popular crowdfunding sites include and, and require the recipient to explain why they need the financial assistance, relying on the audience's sympathy. Potential donors can then decide how much they would like to donate to support the cause and send funds directly to the person in need.

However, these solutions will not work for everyone, considering the massive amount of Americans currently facing medical debt. If your facility is encountering issues with cash flow as a result of bad debt, the decision to outsource receivables management can result in an improved patient/provider relationship and a sharp reduction in losses due to missed filing deadlines.