Understand why medical debt became a tradable asset

In the not-so-distant past, unpaid medical bills were personal negotiations between a doctor and a patient. But starting in the 1980s, hospitals began offloading unpaid bills to outside agencies. These agencies, in turn, sold those receivables as assets to investors, treating each debt like a share of stock. Imagine Mrs. Patterson, who owes $300 from her cataract surgery: once she misses a payment, her bill might be assigned to Agency X, then sold to Buyer Y for $15. Buyer Y now owns the right to collect the full $300, turning Mrs. Patterson from trusted patient to financial target. Removing the personal link between doctor and patient opens the door to ruthless tactics, as collection firms have no commitment to a patient’s well-being. Behavioral science tells us this shift from relationship to transaction erodes trust and drives many to forgo necessary care. It’s not just a legal detail—it reshaped the entire health-care experience.

You’ll gather your hospital’s billing policy, track down the agency names, and follow their online trail to learn exactly how much they pay for your unpaid care. You’ll then map that debt’s journey through the marketplace, using a simple flowchart or diagram. Finally, you’ll jot down how it feels to see your care reduced to a commodity, and how that knowledge can guide you to advocate for more humane practices tonight.