For any medical practice in Virginia, from a local clinic to a large hospital system, managing accounts receivable is a critical business function. When patient accounts become delinquent, collecting that debt is necessary for the financial health of your practice. However, the process is fraught with legal complexities that, if navigated improperly, can lead to severe financial penalties and significant damage to your reputation.

This isn’t just about collecting money; it’s about protecting your practice. Understanding the legal landscape, particularly the rules surrounding HIPAA and the FDCPA, is non-negotiable.

The FDCPA: Setting the Rules of Engagement

The Fair Debt Collection Practices Act (FDCPA) is a federal law that dictates how debt collectors can interact with consumers. While some believe it only applies to third-party agencies, its principles of fair and ethical conduct are the bedrock of professional collections. The FDCPA prohibits actions such as:

• Harassing or abusive language.
• Making false or misleading statements.
• Calling at unreasonable hours.
• Discussing a debt with unauthorized individuals.

Violating these rules can expose a collection agency, and by extension, your practice, to legal action. Therefore, it is essential that any partner you choose operates with an ironclad commitment to FDCPA compliance.

HIPAA: The Critical Consideration in Medical Collections

For healthcare providers, the Health Insurance Portability and Accountability Act (HIPAA) adds a crucial layer of complexity. When you engage a collection agency, you are sharing Protected Health Information (PHI). This action legally designates your collection partner as a “Business Associate.”

This has two critical implications:

• A Business Associate Agreement (BAA) is required: You must have a formal, signed BAA with your collection agency. This contract obligates the agency to protect your patients’ PHI with the same rigor that you do. Operating without a BAA is a serious HIPAA violation.
• Information Must Be Limited: The agency should only receive the minimum necessary information to perform its collection duties. Providing extraneous medical details is a compliance risk.

A breach by your collection agency is a breach of your practice. The stakes are incredibly high, involving potential fines, corrective action plans, and a loss of patient trust. Therefore, choosing a partner who is deeply versed in HIPAA-compliant debt collection is not just a preference; it’s a requirement.

The Gilliam & Mikula Difference: Your Legal Shield

This is where Gilliam & Mikula stands apart. We are not a standard collection agency; we are a collections partner headed by a debt collection lawyer. Our entire process is built on a foundation of legal and ethical integrity, designed to secure your revenue while shielding you from risk.

Here’s how our legal edge protects your practice:

• Attorney-Vetted Compliance: Our collection strategies and communications are reviewed by our legal team to ensure strict adherence to the FDCPA, HIPAA, and all relevant medical debt collection laws in Virginia.
• Seamless BAA Implementation: We understand our role as a Business Associate. Executing a comprehensive Business Associate Agreement is a standard, non-negotiable part of our onboarding process.
• Risk Mitigation: By treating every individual with professionalism and courtesy, we not only protect your reputation but also reduce the likelihood of complaints that could trigger legal or regulatory scrutiny.
• True Enforcement Capability: Should a debt require legal action, our in-house attorney is prepared to leverage the court system correctly and ethically—a capability most agencies lack.

Choosing a collection agency based on contingency fees alone is a dangerous gamble. The true cost of a compliance failure far outweighs any fee.

Don’t Risk Your Practice. Partner with a Professional.

Protect your practice, your reputation, and your peace of mind. Partner with a firm that provides not only effective collection services but also the legal oversight necessary to navigate the complexities of medical debt.

If your Virginia-based practice is seeking a safer, more professional, and legally sound approach to collections, contact Gilliam & Mikula today. Let’s discuss how we can help you recover outstanding revenue while safeguarding everything you’ve worked to build.

Gilliam & Mikula is centrally located in Richmond, Virginia, and serves clients throughout the Commonwealth of Virginia. Our attorneys have over forty years of combined experience in various practice areas, representing individuals and businesses. We are licensed to practice in all General District Courts and Circuit Courts of the Commonwealth of Virginia including, Central, Tidewater, and Northern Virginia areas.

The attorneys at Gilliam & Mikula are here to smoothly guide you through the “legal maze” and ensure that you achieve the most favorable outcome.

The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only.  Information on this website may not constitute the most up-to-date legal or other information. 

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