http://www.kevinmd.com/blog/2008/06/auctioning-off-medical-debt.html Tue, 14 Feb 2012 17:18:00 +0000 hourly 1 http://www.kevinmd.com/blog/2008/06/auctioning-off-medical-debt.html#comment-85963 Anonymous Tue, 03 Jun 2008 17:40:00 +0000 http://clients.emmense.com/kevinmd/2008/06/auctioning-off-medical-debt.html#comment-85963 A growing market . . . and a potential disaster. This kind of arrangement nearly sank Greater Southeast General Hospital in Washington, DC. They sold their receivables to a debt marketer who bundled and securitized the hospital's unpaid debt. The securitizer went bankrupt and in chapter 11 stopped paying the hospital but claimed the right to still collect on the debts under the terms of the contract with the hospital and to satisfy the terms of their bankruptcy claim. A growing market . . . and a potential disaster. This kind of arrangement nearly sank Greater Southeast General Hospital in Washington, DC. They sold their receivables to a debt marketer who bundled and securitized the hospital’s unpaid debt. The securitizer went bankrupt and in chapter 11 stopped paying the hospital but claimed the right to still collect on the debts under the terms of the contract with the hospital and to satisfy the terms of their bankruptcy claim.

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