Fueled by donations from college students to philanthropist MacKenzie Scott, RIP Medical Debt has relieved $6.7 billion in unpaid debt since 2014, NPR reported Aug. 15.
Six things to know:
1. RIP Medical Debt's model was developed by two former debt collectors, Craig Antico and Jerry Ashton.
2. Debt is relieved randomly, CEO Allison Sesso told NPR. It depends on which hospitals' debts are available for purchase.
3. New regulations allow the company to buy loans directly from hospitals, instead of only on the secondary market.
4. A recent surge in donations has allowed RIP Medical debt to hire staff and develop software to sift through databases and identify targeted debt faster.
5. RIP is expanding the pool of those eligible for relief, according to the report. Citing inflation and job losses, Ms. Sesso said RIP now buys delinquent debt for those making up to four times the federal poverty level.
6. RIP is now advising hospitals on how to improve their internal financial systems to better screen for patients eligible for charity care, according to the report.