Protecting Patients from Aggressive Collection Practices

Over the past 9 months, we are seeing a concerning trend: large hospital systems and private equity group purchasers are signing exclusive deals with collection agencies to reduce their bad debt and aggressive collection efforts are drastically increasing. This comes at the expense of our international patients, who suddenly face intimidating collection efforts even while claims are still under review or negotiation. These practices often violate the Fair Debt Collection Practices Act (FDCPA). The FDCPA is not a guideline or best practice; it is a federal law in the US that governs how third-party debt collectors may interact with individuals.

How this Trend is Impacting Our International Patients:

• Patients are receiving unexpected calls or letters from collectors demanding payment.
• Collectors are often uninformed about policy coverage, payment arrangements, or cost containment processes—yet they pressure patients directly.
• These tactics are creating unnecessary stress, damaging trust, and in some cases, exposing sensitive information.

How NFG Protects Our International Patients and Our Clients:

• We leverage the FDCPA to defend patients against these aggressive tactics. Here’s is an overview of the actions we take to fight aggressive collections.
• We send Cease & Desist letters under FDCPA authority, which immediately shift communications away from the patient and onto NFG.
• When NFG issues a Cease & Desist letter, it is not simply a warning—it is a legal document backed by FDCPA protections that compels collectors to stop harassing patients.
• We instruct all collectors to deal only with NFG, not with the patient or client, ensuring confidentiality and consistency.
• We never release policy limits, payment schedules, or personal information to the collection agency.
• We assert patients’ rights under federal law, signaling to collectors that NFG is the authorized party handling the case.
• We document all collector activity to ensure compliance and maintain leverage in disputes or escalations.

For international patients, we use the FDCPA to provide a critical safeguard against collectors who may attempt to exploit unfamiliarity with US law. Without it, patients could be pressured into making unnecessary or premature payments, disclosing personal information, or suffering undue stress.

What FDCPA Requires of Collectors:

• They must stop contacting a patient directly once a valid Cease & Desist is received.
• They cannot misrepresent the amount owed or threaten legal actions they do not intend to pursue.
• They cannot discuss the debt with third parties (like family, friends, or employers) without the patient’s consent.
• They must provide written verification of the debt if challenged.

To Strengthen the NFG Protection for your Patients, we encourage our clients to:

• Direct all collector inquiries they receive to NFG immediately.
• Advise patients to do the same and should not engage or share information.
• Have patients sign Cease & Desist authorizations so we can act swiftly on their behalf.
• Reassure patients that NFG is managing their case and they should not make payments outside of the agreed process.

The Bottom Line

Collectors are becoming louder, more aggressive, and more sophisticated. But with the right protections in place, we can maintain control of the case, safeguard patient well-being, and continue delivering cost savings for our clients. FDCPA is our legal shield. By invoking this law, NFG ensures that collectors understand their limits and that patients are protected under U.S. federal law, not just by our internal policies. NFG will continue to monitor this trend and update you on additional steps we are taking to stay ahead of these challenges.