Our proprietary analysis, based on hospital data, shows that many individuals want to repay their bills but lack the ability to do so because of high levels of consumer debt. Specifically, 40% of bad debt is generated by individuals with over $10,000 of unsecured debt.
Because consumers typically repay hospital bills last, the hospital is the one that is hurt the most when a consumer experiences financial pressure. As the economy worsens, hospitals will face an increasing number of highly troubled accounts. By reducing the principal owed to all unsecured creditors, Vitality helps the consumer to free enough income to pay their hospital bill.
While hospitals collect less than 1% of balances when patients are delinquent and highly indebted, the Vitality debt settlement program allows the average enrolled patient to pay the hospital 30% to 40%, helping the hospital to generate cash from older accounts and providing a helpful benefit to the patient in the process.
