Serving Texas — licensed & bonded
Collection Agency in Texas
MSB is a premier medical debt collection agency in Texas.
Texas at a glance
Third-party debt collector license required.
Trusted Collection Agency in Texas
Debt recovery demands a careful balance of compliance, compassion, and revenue-cycle expertise. Hospitals and clinics across Houston, Dallas, Austin, and San Antonio face rising self-pay balances while navigating some of the strictest consumer-protection rules in the nation. Efficiently collecting outstanding balances without damaging patient trust or violating Texas law is a critical challenge.
Partnering with Midwest Service Bureau (MSB) provides a tailored, compliant medical debt collection program. Our 55 years of experience, combined with our analytics-powered Expert Analysis Portal, help healthcare providers anticipate, manage, and resolve delinquent accounts efficiently — all while maintaining patient goodwill and minimizing regulatory risk.
MSB’s structured approach ensures every account is validated, communicated with care, and resolved within HIPAA, TDCA, and Finance Code regulations.
Texas medical debt collection is a balancing act: the Lone Star State enforces some of the nation’s toughest consumer protections while hospitals wrestle with ballooning self-pay balances. By choosing Midwest Service Bureau (MSB), your organization secures a Texas medical debt collection program that converts receivables into revenue, without harming patient trust or triggering Texas Finance Code penalties. Our 55 years of experience and analytics-driven Expert Analysis portal give you the insight to predict, prevent, and pursue delinquent accounts with surgical precision.
We ingest AR directly from Epic, Meditech Self-Pay Recovery, or any EHR, then scrub for payer denials, charity-care eligibility, duplicate claims, and SB 490 billing-rule compliance. Clean data is the bedrock of compliant Texas medical debt collection.
First notices go out within 24 hours, paired with plain-language financial-assistance flyers. Calls, SMS, and email touchpoints follow Texas’s 8 a.m.–9 p.m. windows, and all scripts meet both TDCA and FDCPA standards. Patients can self-serve via our Early-Out Patient Collections portal, setting up no-interest plans in minutes.
Medical Balances We Recover
Hospital & Health-System Collections
- Emergency-room visits
- Inpatient admissions
- Outpatient procedures
- Surgical & diagnostic services
Physician-Practice Collections
- Office visits & specialist consultations
- Procedure fees & follow-ups
- Lab work & imaging services
Specialty-Healthcare Debt
- Dental care
- Vision services
- Mental-health counseling
- Physical therapy & rehabilitation
- Home-health nursing
Why MSB is a Reliable Collection Agency in Texas?
You Only Pay When We Recover
MSB operates on a performance-based model — no upfront fees, no hidden costs. You pay only when we successfully recover your outstanding medical accounts.
Proven Recovery Success Rate
With 55+ years of medical collection experience, we deliver strong, consistent recovery results that help healthcare providers secure more of their earned revenue.
Improved Cash Flow for Healthcare Providers
Our efficient recovery processes reduce aging receivables and strengthen financial stability for hospitals, clinics, and medical groups throughout Texas.
Transparent Reporting & Real-Time Account Tracking
You receive clear, up-to-date performance reports and full visibility into every account, ensuring complete transparency throughout the recovery process.
Compliance, Data protection & Professional Standards
Statute of Limitations
Texas enforces a 4-year statute of limitations on written contracts and promissory notes under Tex. Civ. Prac. & Rem. Code §16.004. This means creditors have four years from the date of default to file a lawsuit for unpaid medical debt. Importantly, a partial payment does not restart the clock unless the debtor makes a new written promise to pay.
Texas Finance Commission Licensing
All third-party debt collectors operating in Texas must be licensed and bonded through the Texas Office of Consumer Credit Commissioner under Finance Code Chapter 392. Agencies are required to maintain a $10,000 surety bond filed with the Secretary of State. MSB maintains all required bonds and licenses, ensuring full compliance with Texas regulatory requirements.
Wage Garnishment Rules
Texas is one of the most debtor-friendly states in the nation when it comes to wage garnishment. Texas does not allow wage garnishment for most consumer debts, including medical debt. Creditors cannot garnish wages to collect unpaid medical bills, though they may pursue other collection remedies such as bank account levies (with limitations) or property liens.
Key Consumer Protection Laws
Texas Debt Collection Act (TDCA): Extends FDCPA-style protections to all creditors — not just third-party agencies — prohibiting deceptive, harassing, or unconscionable collection practices. SB 490 (2023): Requires hospitals to issue detailed, itemized bills before initiating collection activity. Non-compliance voids interest or late fees on the account. Nonprofit Hospital Charity Care: Under Health & Safety Code §311.045, nonprofit hospitals must document financial assistance denials and offer charity care options before selling or assigning medical debt accounts.
Credit Reporting
The CFPB’s 2025 national ban on reporting medical debt is currently paused by a federal court in the Eastern District of Texas. MSB therefore suppresses bureau reporting unless and until the rule takes full effect.
HIPAA Compliance Requirements
All Texas medical debt accounts include PHI secured with AES-256 encryption, role-based access, and detailed audit logs. Business Associate Agreements incorporate a 72-hour breach-notification window, ensuring full HIPAA alignment.
TDCA Recertification & FDCPA Standards
MSB collectors complete annual TDCA recertification and follow FDCPA standards. Scripts, disclosures, and contact timing are monitored for full compliance with Finance Code and federal regulations.
How MSB Ensures Compliance in Texas
MSB maintains full TDCA bonding, completes annual TDCA recertification for all collectors handling Texas accounts, and follows strict HIPAA protocols with AES-256 encryption for all protected health information. Our compliance team monitors legislative changes — including SB 490 billing requirements and evolving CFPB rules — to ensure every Texas medical debt collection file meets or exceeds regulatory standards.
Frequently Asked Questions
Four years for written contracts under Tex. Civ. Prac. & Rem. Code §337. Partial payments do not reset the clock unless a new written promise is made.
Currently, medical debt may appear on credit reports. The CFPB’s 2025 ban on reporting medical debt is paused in Texas and could take effect later in 2025.
Texas medical debt collection must comply with HIPAA, TDCA, SB 490 itemized billing, and nonprofit hospital charity-care requirements, making it stricter than general consumer debt.
Review the itemized bill and Explanation of Benefits, then contact Midwest Service Bureau within 30 days to validate or set up a secure payment plan.
Yes. Under Texas law, a health-care provider must send you a bill by the first day of the 11th month after the services were provided. If they miss that billing deadline, they may lose the right to legally collect that debt.
Yes. You have the right to ask for a detailed, itemized bill, challenge errors, and request validation of the debt. Disputing can be especially effective if the bill is old, unclear, or seems inflated.
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Call (800) 362-0272