Ohio Law Could Change Over Medical Debt Collection As Hospital Sues 1000’s Of Patients

Ohio is considering major changes to its medical debt collection laws following public backlash over lawsuits filed by hospitals against thousands of patients for unpaid medical bills. A central Ohio hospital, Mary Rutan Hospital, is at the center of attention after suing nearly 3,000 patients in just two years, leading to wage garnishments and financial distress for many individuals.​​

Proposed Legislative Changes

Lawmakers from both parties have introduced the Ohio Medical Debt Fairness Act (House Bill 257), which would significantly alter current debt collection practices. The bill aims to:

• Ban wage garnishment for unpaid medical bills.

• Cap interest rates on medical debt collection judgments at 3%, down from the current 8%.

• Prohibit hospitals and other healthcare providers from reporting unpaid medical debt to credit agencies, preventing it from negatively impacting credit scores.​​

Reason for the Proposed Law

The move comes after investigative reporting revealed aggressive collection tactics, with court dockets showing that Mary Rutan Hospital alone filed a large share of civil suits in local courts—most resulting in default judgments and wage garnishments. Patients, some with chronic illnesses, described being overwhelmed by lawsuits for even relatively small amounts of debt and expressed fears of losing their homes or going bankrupt.​​

Impact and Debate

Advocates argue that these changes would help thousands of Ohioans who are currently facing crushing medical debt, while hospitals warn that limits on collections could threaten their financial stability. Critics of the bill worry it could shift more upfront costs to patients or encourage some people to avoid paying medical bills altogether.​

If enacted, Ohio would join several other states that have implemented similar consumer protections—shielding patients from harsh debt-collection measures and limiting the financial fallout of medical bills.​

Current Status

House Bill 257 is under committee review at the Ohio Statehouse and has not yet become law as of November 2025. If passed, it would represent one of the most sweeping reforms of medical debt collection in Ohio’s recent history.​