For hospitals and health systems.
Sell or donate unpaid patient accounts to be cancelled, with public reporting that never names a patient.
We will buy medical debt and cancel it. We will never collect it, report it or sue.
Where we are today
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
Our buyer terms will meet these conditions, and counsel will approve their wording before we sign any purchase. We will never collect, report or sue on an account we buy.
- A first callWho is involved Your team and ours
- Data review and eligibility screeningWho is involved Our team, under data terms
- An agreementWho is involved Both sides, with counsel
- Purchase and cancellationWho 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
For each purchase, one row in our public ledger, without the price or your name:
- The date of the purchase.
- 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. We will agree a price for each portfolio with your hospital, in private. We will never publish the price or your name.
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 what you have in mind. The form asks only for what we need to understand it.
Sources
Note 1 IRS, "Requirements for 501(c)(3) Hospitals Under the Affordable Care Act - Section 501(r)". Published July 2, 2026. Last checked November 2, 2026.
Note 2 IRS, "Billing and Collections - Section 501(r)(6)". Published July 2, 2026. Last checked November 2, 2026.