For hospitals and health systems.
Help patients look beyond an unpaid bill. Explore cancellation with patient privacy at the center.
We will buy medical debt and cancel it. We will never collect it, report it or sue.
Getting ready for our first cancellation
Gifts to The Medical Bill, Inc. may not qualify for a federal income tax deduction. Our tax-exempt status is not confirmed yet.
Tax deductibility outside the United States depends on your local law.
Steps done: 1 of 8.
Why it fits 501(r)
- Section 501(r) of the federal tax code sets requirements for every nonprofit hospital facility, and one of them limits billing and collections.Source 1
- A nonprofit hospital has to give patients time to apply for financial assistance, and notice in writing, before it takes an extraordinary collection action.Source 2
- Selling a patient's debt counts as an extraordinary collection action, like reporting to a credit bureau or suing, unless the sale meets specific conditions.Source 2
- A sale does not count as one when the buyer's contract bars collection actions, caps interest at the IRS underpayment rate and lets the hospital take an account back if the patient qualifies for financial assistance.Source 2
How it works for a hospital
- A first callWho is involved Your team and ours
- Review account information in privateWho is involved Our team, under data terms
- An agreementWho is involved Both sides, with counsel
- Cancel the debtWho is involved Our team
- A letter to each patientWho is involved Our team, by mail
- A public reportWho is involved Our team, in public
Data and privacy
Patient data never touches our public website. We will sign business associate terms where the law requires them, and we publish only aggregate numbers.
What we publish
When we cancel debt, we will share these results on our impact page:
- The date.
- The medical debt cancelled.
- How many people it reached.
- The region, where enough people share it to keep each of them private.
Questions from hospitals
No. Public reports will show how much medical debt was cancelled and how many people it reached. We keep the details of our agreement private.
We can cancel only what is still owed when we buy an account. A payment made before the sale stays a matter for the hospital and its financial assistance policy.
Yes. Each person whose debt we cancel will get a letter from us that says so. It will carry a code they can check on our website, and it will never ask for money.
We will never report an account we buy. Where a cancelled account already shows on a credit report, we will ask for it to be removed; how we do that will be settled with counsel before our first purchase.
By letter, from us, once the cancellation is recorded. Your hospital may also tell its patients, with wording we agree together.
Talk to us
Tell us about your organization and how you’d like to work together.
Keep patient details out of this form.
Note 1 IRS, "Requirements for 501(c)(3) Hospitals Under the Affordable Care Act - Section 501(r)". Last checked November 2, 2026.
Note 2 IRS, "Billing and Collections - Section 501(r)(6)". Last checked November 2, 2026.