New MedFico Scores Must Be Covered By The FCRA
February 19, 2008 – 7:46 pmby Geoffrey H. Baskerville, Esquire
Under a system that could begin operation as early as this summer, hospitals could check a patient’s specially designed medical credit score to determine the patient’s ability to pay his or her hospital bill.
The new MedFico score is being developed by Healthcare Analytics, a technology firm from Massachusetts. Money to develop the new scoring system is coming from Fair Isaac; Tenant Healthcare Corp., and North Bridge Venture Capital Partners, a venture capital firm. Each is reported to have contributed $10 million to the project.
While proponents of the new system claim that it is necessary for hospitals to be able to assess the amount of money coming in and thereby be able to determine if they have the resources to pay for various projects, others worry that the system will be used to determine if a patient should be treated. Tenet already uses a system that ranks a patient’s ability to pay based on various criteria including credit score. Given that Tenent had approximately $433 million in medical debt in the first three quarters of 2007, any system that can be used to assess the hospital’s ability to collect composite triple beat from its patients could become a litmus test for the care offered to the patient. This fear is born out by a recent study conducted by researchers with the American Caner Society, and reported in the New York Times, that shows that the uninsured and those on Medicaid are more likely than those with private insurance to receive a diagnosis of caner at a late stage of the disease, which often diminishes their chance of survival.
The concern that the new MedFico score will be used to determine treatment options highlights that there is the very serious possibility that the new system will become a new area of operation for identity thieves and source of frustration for the victims of mixed files. Does this new MedFico score and its reporters come under the Fair Credit Reporting Act? Surely those who will be reporting MedFico scores will argue that it does not. Certainly the statement of purpose section of the FCRA makes it seem that it applies only to credit reporting that affects the banking system, i.e. the credit worthiness of a consumer. Hospitals and their ability to finance capital projects do not appear to be covered by this statement.
Notwithstanding these arguments, the simple truth of the matter is that the new MedFico score and its providers are (or must be) covered by the FCRA. The financial well being of hospitals is directly related to the strength of our economy and banking system. Thus the Act should apply. More importantly, the consumers who will be the subject of the new MedFico score need the same protection from identity thieves and the potential combining of files that the FCRA provides for consumers with respect to the credit bureaus. Identity theft and mixed files are each as great a threat and possibility underLa qualit? excellente des jeux, le design unique du site, les effets graphiques et sonores imposants, le climat merveilleux des salons, toutes ces r?ussites techniques proposent aux joueurs sur Online Casino une ambiance, bien proche de celle, dans un http://www.pokersuperbe.com/sites-pour-poker-gratuit.html
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3 Responses to “New MedFico Scores Must Be Covered By The FCRA”
How many people will be left untreated in hospitals as a result of this? This should not be legal.
By Alicia Bungy on Feb 20, 2008
Who is running the credit reporting agencies?
Do not be mislead. They are not consumer protection. I currently have three medical bills posted by the agencies. When I submitted proof that I did not owe, they informed my that the information had been “verified” and would not remove it. In all three cases I never once received a bill. The only time I new I had a problem was when they showed up on my credit report. I cannot get credit anywhere. I know for a fact that people would be left to die if we allow these agencies to continue to play God. Funny thing the mark of the beast is “666″. Where does that fall on Fair Issacs list?
By sandra nicholson on Jun 5, 2008
I think it is Bull hockey that we have to now worry about credit when going to a hospital for health care.
If companies like this company would not drive up the health care cost to taxs payers we would have half the problems facing this nation!
By James Madison on Oct 27, 2008