Collecting payments from patients isn’t always easy. For healthcare providers in Florida, it can also be tricky to stay on the right side of the law. New rules and changing guidelines mean that even small mistakes can lead to big problems—like fines or lawsuits.
This article will walk you through the basics of Florida debt collection rules, especially when it comes to handling medical bills. If you’re part of a hospital, clinic, or billing office, this is for you. We’ll explain what’s new, what’s required, and what you need to avoid.
Medical Debt in Florida: Why This Matters
Medical bills can be stressful. For patients, even a small emergency room visit can lead to big charges. For providers, unpaid bills can hurt the bottom line. But collecting those payments has to be done legally and fairly.
What’s the Problem?
In recent years, Florida lawmakers noticed a rise in complaints about unfair medical debt practices. Patients said they were being sued too quickly or didn’t understand what they owed. Some never got a proper bill before being sent to collections. That’s a big deal.
What’s Changed?
To fix this, Florida passed new debt collection laws that apply to healthcare facilities. These rules became law in 2024 and are designed to protect patients from harsh collection tactics. At the same time, they help providers by creating clear steps for collecting payments.
If you work in medical debt collection, you need to know these rules. They cover things like:
- What kind of notice you must give before starting collections
- How long you must wait before taking legal action
- What kind of help (like payment plans) you must offer first
Why It Matters for You
If your team doesn’t follow the rules, your practice or hospital could get in trouble. Fines, bad reviews, or even lawsuits can happen. But if you do follow the rules, you’ll build trust with patients and avoid risk.
Key Legal Requirements Under Florida Law (HB 7089 and More)
The law that changed everything in Florida is called HB 7089. It tells healthcare providers exactly what they must do before collecting medical debt from patients.
Here’s a look with some clear steps:
1. Give Patients a Proper Bill
Before starting any legal collections, you must give the patient an itemized bill. That means a clear list of services, costs, and what insurance paid (if any).
Also, you must:
- Bill any insurance plan first
- Wait for the insurer to make a decision
- Give patients a fair chance to review the charges
2. Offer Help Before Collections
You can’t just send a patient to collections right away. First, you must:
- Tell them about financial help programs
- Offer a grievance process if they want to dispute the bill
- Wait at least 30 days after sending a written warning before taking action
And that notice must be trackable (like certified mail or email with a read receipt).
3. No “Extraordinary” Actions Until You’ve Tried Everything Else
Florida law lists some actions that are too aggressive unless you’ve followed all the steps above. These include:
- Suing the patient
- Reporting to credit agencies
- Garnishing wages or placing liens on property
- Selling the debt to outside companies
Doing any of these too soon could violate debt collection laws in Florida.
4. Understand the New Time Limit
You used to have five years to file a lawsuit for unpaid medical bills. Now, you only have three years from the date you refer the account to a collection agency. That’s a big change, and it’s part of staying on top of Debt Collection Compliance.
5. Protect the Patient’s Property
If you try to collect through the courts, you must know what’s protected. Florida’s new rules say patients can keep their car or other personal items up to a value of $10,000—unless they’re using a homestead exemption.
Federal Laws and Risk Areas Healthcare Providers Can’t Ignore
Even though Florida has its own rules, healthcare providers must also follow federal laws. These laws protect patients across the country—not just in Florida. And yes, they do apply to how you collect payments.
Let’s go over the big ones you need to know.
1. FDCPA – Fair Debt Collection Practices Act
This law covers how third-party collection agencies behave. If you hire someone to collect money for you, they must follow these rules:
- They can’t call too often or use rude language.
- They must stop calling if a patient says to stop.
- They can’t call early in the morning or late at night.
- They must send a letter explaining the debt within 5 days of first contact.
If they break these rules, your practice could still be blamed. So always choose your collection partners carefully.
2. FCCPA – Florida’s Version of the FDCPA
The FCCPA is similar but is specific to Florida. It protects patients from unfair treatment—even if you’re collecting the debt yourself. This means Florida debt collection rules go even further than federal ones.
Here’s what that looks like:
- Don’t contact patients after they’ve hired a lawyer.
- Stop all collection activity if they file for bankruptcy.
- Never mislead or threaten patients about what could happen.
Being polite, honest, and clear isn’t just nice—it’s the law.
3. HIPAA Compliance Still Matters
You probably know this one. HIPAA compliance protects patient privacy. But did you know it applies to billing too?
Here’s what to watch for:
- Don’t share patient info with a collection agency unless there’s a signed agreement.
- Make sure billing staff knows what’s okay to say in voicemails or emails.
- Don’t print patient details on envelopes or postcards.
HIPAA isn’t all medical records—it also affects how you talk about billing.
4. Risk Areas That Get Providers in Trouble
You might follow the law most of the time. But here are a few easy-to-miss mistakes:
- Offering payment plans with interest but not following compliance laws like TILA (Truth in Lending Act).
- Forgetting to pause collections while a patient is applying for help.
- Selling debt too soon, before finishing all required steps.
- Letting your collection agency act without proper oversight.
If you’re unsure, it’s always safer to double-check. Being proactive is one of the best Debt Collection Tips you can follow.
Building a Compliant, Patient-Centered Collection Strategy
It’s possible to collect payments the right way and keep patients happy. The secret? A clear, organized strategy that follows the rules and shows respect.
Here’s how to make that happen.
1. Start with Clear Communication
Patients are more likely to pay when they understand what they owe. So always:
- Send itemized bills that are easy to read
- Explain what insurance covered and what’s left
- Include contact info in case they have questions
This reduces confusion—and delays.
2. Set Up a Fair Payment System
Not every patient can pay right away. That’s okay. Help them with simple options:
- Offer interest-free plans when possible
- Limit to four installments to avoid triggering extra laws
- Give clear written terms, even for small balances
Make sure patients know their choices up front.
3. Train Your Team Regularly
Laws change. Mistakes happen when staff don’t know the rules. Keep everyone updated on:
- Florida debt collection rules
- What your notices must include
- What actions to avoid without proper notice
Role-play calls or practice handling questions. It’s worth the time.
4. Build a Solid Paper Trail
Keep records of:
- When you sent bills and notices
- Any financial help applications
- Notes from calls or patient emails
Good records protect your team and show you followed the law.
5. Choose Your Partners Carefully
Your collection agency should follow your values—and the law. Ask questions like:
- Are they trained in compliance laws and HIPAA?
- Do they provide call recordings or reports?
- How do they handle disputes?
A strong partner helps you recover payments while protecting your reputation.
Conclusion
Navigating Florida’s medical billing rules doesn’t have to be scary. If you take the time to learn the law and follow the right steps, you can collect payments while still treating patients fairly. That’s a win for everyone.
Remember: follow the timeline, give clear notice, and always offer support first. These rules are here to guide you—not stop you—from running a smooth, compliant practice.
Need help getting your billing process up to speed? The team at Medical Data Systems is ready to help you stay compliant and confident. Let’s get it right—together.
FAQs
1. Can I send a patient to collections right after service?
No. You must bill their insurance, provide a clear itemized statement, and wait at least 30 days after proper notice.
2. What is considered an “extraordinary collection action”?
Actions like suing, garnishing wages, or reporting to credit bureaus without completing all legal steps first.
3. How long do I have to file a lawsuit for medical debt?
Only three years from the date you send the debt to a collection agency, under Florida law.
4. What if a patient is applying for financial assistance?
You must pause any collection activity until that application is reviewed and processed.
5. Does this law apply to all types of medical providers?
It applies mostly to licensed facilities like hospitals and ambulatory surgical centers—not to individual doctors’ offices.