Hospitals - Medical Debt Collection - Sale of Patient Debt to Nonprofit Organizations

HB 1324 allows Maryland hospitals to sell unpaid patient medical debt to nonprofit organizations *only* if the nonprofit cancels the debt. This directly affects hospitals (requiring them to amend financial policies) and patients with outstanding medical bills who may have their debt forgiven through this process. Key provisions mandate hospitals to dismiss all pending legal actions for sold debt and prohibit any further collection efforts - including on judgments - on debt sold to qualifying nonprofits. The bill also updates hospital reporting requirements to include demographic data on debt collection practices, but its core change centers on enabling debt cancellation via nonprofit partnerships.