Tennessee court tries out online medical debt resolution

A judge in Tennessee's Hamilton County is piloting an online dispute resolution platform to keep medical debt collection out of court, according to a report from the ABA Journal's June/July 2022 issue. 

Patients of Erlanger Health System's Chattanooga providers can use the platform to communicate with the hospital about payment options and ways to potentially reduce bills, according to the report. Patients can also use the pro bono services of a trained mediator to reach a settlement if needed. 

From October to December 2021, 66 of 238 Erlanger patients who had been unresponsive to the health system's communications responded after email invites, according to the report. Of those 66, 70 percent resolved their outstanding debt through lump-sum payments, payment plans or financial assistance, potentially resulting in 46 fewer lawsuits filed in small claims court. 

About 61 percent of the responsive patients engaged directly with the platform, while the rest communicated with the hospital through other methods to resolve their debt, according to the report. In total, $79,775.26 in debt was resolved, with an average savings of 33 percent to patients.

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