California Health and Safety Code

§ 127425

HSC § 127425 Effective Jan 1, 2025Div. 107 · Part 2 · Ch. 2.5 · Art. 1

Statute text

(a)A hospital shall not sell patient debt to a debt buyer, as defined in Section 1788.50 of the Civil Code, unless all of the following apply:

(1)The hospital has found the patient ineligible for financial assistance or the patient has not responded to any attempts to bill or offer financial assistance for 180 days.

(2)The hospital includes contractual language in the sales agreement in which the debt buyer agrees to return, and the hospital agrees to accept, any account in which the balance has been determined to be incorrect due to the availability of a third-party payer, including a health plan or government health coverage program, or the patient is eligible for charity care or financial assistance.

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Legislative history

Amended by Stats. 2024, Ch. 520, Sec. 10.5. (SB 1061) Effective January 1, 2025.