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  1. #1

    Default Is There a Statute of Limitation on a State Hospital Collecting on Medical Bills

    Greetings from the State of Oregon!

    Can an Oregon state hospital collect on an outstanding bill for mental health services paid for by Medicaid? Can they collect "retroactively" should a person come upon an estate (i.e. he/she inherits their parent's house)? Or is there three to six year statue of limitations in this case?

    For example, in April 2009 a state hospital charges John $22,000 per day for a one month visit for a total of $660,000. On July 1, 2016, he gets his first job in computer science after graduating from college. His salary is $45,000 a year and he sets aside $5,000 in a Roth IRA on April 15, 2017.

    Will the Oregon state hospital use his $45,000 salary and $5,000 Roth contribution to re-assess what he owes on his unpaid medical bills? Does the three to six year statue of limitations apply or not apply in this case?

  2. #2
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    Default Re: Is There a Statue of Limitation on a State Hospital Collecting on Medical Bills

    Oregon's statutes provide,
    Quote Quoting O.R.S. Sec. 12.250. Actions by state, county or public corporations.
    Unless otherwise made applicable thereto, the limitations prescribed in this chapter shall not apply to actions brought in the name of the state, or any county, or other public corporation therein, or for its benefit.
    No such statement of inclusion exists in the statute defining the limitations period governing contracts, O.R.S. Sec. 12.080, suggesting that the debt to the public hospital would remain enforceable. Despite your absurd numbers suggesting that there may be nothing behind your question, if this is actually an issue for you, you should discuss your situation with a bankruptcy lawyer.

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