HHS-OIG Modifies Conditions Allowing a Charity to Purchase and Forgive Medical Debt
Highlights
HHS-OIG issued a Notice of Modification of Advisory Opinion No. 20-04, which allows a charitable organization to purchase and receive medical debt owed by certain qualified patients and forgive such medical debt
The modification would permit hospitals and other providers to disclose the sale or donation of patient debt when reporting the hospital’s community benefits and/or financial assistance policies and permit the charitable organization to identify certain providers by name in marketing materials
HHS-OIG did not impose administrative sanctions on the charitable organization in connection with the modified arrangement
On April 24, 2023, the Office of Inspector General of the U.S. Department of Health and Human Services (HHS-OIG) issued a Notice of Modification of Advisory Opinion No. 20-04 regarding a charitable organization’s proposal to publicize the purchase or donation of unpaid medical debt owed by qualifying patients from certain types of healthcare providers, and the charitable organization’s forgiveness of that debt.
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