Hospitals - Medical Debt Collection - Sale of Patient Debt

HB 765 allows Maryland hospitals to sell patient medical debt **only to government units or their contractors for debt cancellation**, not for profit. It requires hospitals to dismiss all pending collection actions for sold debt, stop all collection efforts on that debt, and report detailed data on debt sales (including amounts sold, payments received, and patient demographics) annually. The bill directly affects hospitals by mandating new financial policies and patient reporting requirements, and impacts patients whose debt is sold by preventing further collection attempts. Key provisions include prohibiting interest charges before court judgment, requiring refunds for patients later found eligible for free care, and banning hospitals from reporting adverse credit information during an 180-day grace period.