Pennsylvania Medical Collections: How to recover revenue in a “No Wage Garnishment” State
For healthcare CFOs and Practice Managers in Pennsylvania, debt collection presents a unique challenge found almost nowhere else in the country.
Unlike most states, Pennsylvania generally prohibits wage garnishment for commercial debts, including medical bills. This means the standard “legal threat” used by lazy agencies—suing to garnish a patient’s paycheck—is completely toothless here.
If your current agency relies on threats of wage garnishment or credit reporting to get paid, they are selling you a strategy that is legally impossible and increasingly obsolete.
We have engineered a recovery model specifically for the Commonwealth’s restrictive landscape. We focus on diplomacy and asset execution, ensuring you get paid without relying on empty threats.
The Pennsylvania Challenge: Why Standard Agencies Fail
Operating in PA requires a higher level of skill because the “easy button” (garnishment) doesn’t exist.
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The “Wage Protection” Wall: You cannot garnish a patient’s wages for medical debt in PA. Period. This creates a “judgment-proof” mindset among some debtors who know that even if you sue them, their paycheck is safe.
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The Credit Reporting Ban: With the CFPB’s 2025 rules banning most medical debt from credit reports, the secondary tool of “wrecking their credit score” is also vanishing.
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Act 6 Interest Caps: Under Pennsylvania’s “Act 6,” the legal interest rate is often capped at 6% for smaller debts unless you have a specific contract stating otherwise. Agencies who unknowingly demand higher interest are exposing you to liability.
Our solution is simple: Since we can’t force payment through wages, we use psychological negotiation and asset leverage to prioritize your bill.
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Our “PA-Specific” Recovery System
We don’t treat a patient in Pittsburgh the same way we treat a debtor in Texas. Our 4-step model is calibrated for Pennsylvania law.
Phase 1: The “Flat-Fee” Nudge (Steps 1 & 2)
Because legal options are limited, voluntary payment is your gold standard. We maximize this early on.
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The Strategy: We act as an extension of your billing office, sending courteous but firm “Audit Notices.”
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The Cost: A low flat fee (approx. $15/account).
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The Benefit: This clears out the 40% of patients who simply forgot or are procrastinating, without you paying a commission. You keep 100% of the dollars collected here.
Phase 2: Negotiated Resolution (Step 3)
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The Strategy: This is where our training shines. Since we can’t threaten wage garnishment, our collectors are trained in “consultative collection.” We work with patients to find hidden liquidity—tax refunds, savings, or family assistance—to settle the debt.
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The Cost: 40% contingency.
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The Benefit: We find money where others only find excuses.
Phase 3: Asset Execution (Step 4)
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The Strategy: When a patient has the means to pay but refuses, we escalate to litigation. While we can’t garnish wages, we can and do pursue bank account levies and property liens. A frozen bank account is often more motivating than a wage garnishment.
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The Cost: 50% contingency.
Why PA Providers Switch to Us
1. We Don’t bluff. Debtors in PA know the law. If an agency threatens to “garnish their wages,” the debtor knows it’s a lie, and you lose all credibility. We use honest, actionable leverage that actually works.
2. We Navigate the “UPMC vs. Highmark” Confusion. Whether you are in the Allegheny Health Network (Pittsburgh) or the Penn Medicine ecosystem (Philadelphia), patients are often confused by complex EOBs. Our agents act as patient advocates, helping them understand what insurance didn’t cover so they feel comfortable paying the balance.
3. Local Statute Mastery. We strictly track the 4-year Statute of Limitations for medical debt in PA. We ensure you don’t throw good money after bad by chasing time-barred debts that could trigger a lawsuit against your practice.
Sector Spotlight: Who We Help
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Independent Specialists: Orthopedics and Dental practices in the Philly suburbs who need to maintain high community standing.
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Urgent Care Centers: From Erie to Harrisburg, handling high-volume, low-balance copays.
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Ambulance & EMS: Recovering funds from auto-accident settlements where “Act 6” rules on medical costs often apply.
Frequently Asked Questions
Q: Is it true I really can’t garnish wages for medical bills in PA?
A: Yes, it is true. Pennsylvania is one of the few states that strictly prohibits wage garnishment for commercial debts like medical bills. We can only garnish for taxes, student loans, and support. This is why hiring a skilled negotiator is far better than hiring a “litigation mill.”
Q: Can you put a lien on their house?
A: Yes. If we obtain a judgment in court, it acts as a lien against real estate in that county. The debtor generally cannot refinance or sell their home without paying you off.
Q: What is the “Statute of Limitations” in Pennsylvania?
A: You generally have 4 years from the date of the last payment or missed payment to file a lawsuit. After that, the debt is “time-barred.” We automatically audit your files to ensure we are within this window.
Stop relying on empty threats. Start using a strategy that works in Pennsylvania.
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