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  5. ›RFP 26-017 Self-Pay Bad Debt Third Party Collections

The University of Texas Medical Branch·Texas

RFP 26-017 Self-Pay Bad Debt Third Party Collections

Closes 4/2/2026$500k – $1MRequest for Proposal
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Description

The University of Texas Medical Branch (UTMB) seeks a qualified third‑party collection agency to manage self‑pay patient bad‑debt across its health system. The vendor will receive daily placement files, conduct multi‑channel outreach, and collect on accounts on a contingency‑fee basis while complying with HIPAA, FDCPA, TCPA, and UTMB‑specific policies. No fees or interest may be added to patient balances, and credit‑bureau reporting is prohibited. The contract is for three years, with an expected volume of roughly 7,600 accounts per month (~$53 M annually) and a historical recovery rate of about 3.7 %. • Provide primary (and potentially secondary) collections for hospital and professional billing accounts, using Epic MyChart integration and secure sFTP/Cisco VPN/Citrix connectivity. • Submit weekly remittance files, maintain detailed performance reporting, and adhere to strict data‑security and off‑shore restrictions. • Propose a single contingency‑fee percentage applied to all collections; UTMB suggests a 2 %/10 Net 30 discount on its payments to the vendor.

Attached files

Contact

Patricia “Trish” Perry(Sr. Acquisition Specialist)

[email protected]

(409) 266‑1372

Key dates

Opened
2/20/2026
Questions due
3/11/2026
Pre-bid meeting
3/4/2026
Closes
4/2/2026
Projected award
5/1/2026
Duration
3 years

Last updated

Details

Type
Request for Proposal
Industry
Financial Services
NAICS
561422
Solicitation №
RFP 26‑017

Budget estimate

$500,000 – $1,000,000

Based on UTMB’s historical annual placement volume of ~$53.7 M and a recovery rate of ~3.7 %, expected collections are about $2 M per year. Assuming a typical collection‑agency contingency fee of 10‑20 % of collected amounts, the vendor could earn roughly $200 k‑$400 k annually, or $600 k‑$1.2 M over the three‑year contract. Factors influencing the range include the exact fee percentage proposed, actual recovery performance, and any discount terms applied to UTMB payments.

AI estimate from the solicitation

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