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Title: Medical Debt forgiveness for low-income residents
Procurement
Health and Mental Hygiene (DOHMH)
Center for Health Equity and Community Wellness
MEDICAL DEBT RESOLUTION INC
2807 Jackson Ave Fl 5 , Long Island City, NY, 11101
Services (other than human services)
Sole Source
12/30/2024
Award
$18,000,000.00

PIN#81624S0004001

Description

The Department of Health and Mental Hygiene (DOHMH) is entering into a Sole Source contract with Medical Debt Resolution, Inc. d/b/a RIP Medical Debt (RIP MD), a national non-profit corporation to act as the third party between funders and hospitals to forgive medical debt. 

Medical debt is a significant problem for low-income and communities of color who have limited financial resources to cover the cost of medical bills, which in turn might even delay the care they need. Medical debt has negative impacts to patient’s credit scores and health, especially mental health.

By establishing a Medical Debt Relief program, it will increase the credit scores of patients and enhance their access to health care, enhance health equity in the community, and help hospitals sell dormant, non-performing assets.

DOHMH has determined that RIP Medical Debt is the only entity operating in the United States that acquires and abolishes medical debt owed by individuals who are in financial hardship and on a basis that is tax-free to program recipients. 


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