Recent laws in New Jersey and California represent a disturbing trend that will negatively impact a practice’s ability to collect monies from patients, as well as expose them to significant penalties if the practice does not follow the mandatory guidelines to a T. Please be aware that a similar law may be coming to your state. The time to act is before the law is passed.
Student Loan Defaulters Beware
OLYMPIA, Washington -- A new law in Washington state requires that after June 6, 1996, the license of any regulated health care provider be suspended if they default on a federal or state-guaranteed educational loan or service-conditional scholarship.
Under that law, the first licenses of Washington state health care practitioners have been indefinitely suspended by the state Department of Health for defaulting on student loan payments.
Not surprisingly, the first licensees suspended for failure to pay student loans are four chiropractors.
Practitioners charged with nonpayment or default have 28 days from notification to respond to the state's department of health. If no response is received, the license is suspended without a hearing.
To be reinstated, providers must have a written release from the lending institution that indicates they are making payments under an approved payment schedule. During the suspension, the practitioner must continue following all requirements for licensure.
Suspensions resulting from default on student loans will be included on the monthly summary of disciplinary actions issued by the communications office of Washington state's department of health.