The Medical Arbitrage Industry was created in 2014 to assist patients in paying their bills while helping to enure that medical providers receive payment. This implementation was based on years of research.

“Medical Arbitrage” is an economic theory that creates efficiencies in the healthcare industry. The majority of medical bills contain errors that increase the cost of patients’ bills. These errors include unbundling, improper coding, care that was billed for but not provided, etc.

When a technically proficient person reviews the charges on a patient’s medical bill versus what the proper charges “should be,” an opportunity for arbitrage may exist. Specifically, the patient’s medical bill becomes an asset because the dollar value associated with the bill is greater than the true value of the cost of care. In such a case, a Medical Arbitrage company would assume (take responsibility for) the medical debt liability from the patient at a discount amount $%, and hope to settle the medical debt liability with the medical provider for $Y (a lesser amount) – though the Medical Arbitrage company may lose money.

Example: Frank has a $10,000 medical bill. The Medical Arbitrage company would assume the liability from Frank for $7,000. The company would hope to settle it with the provider for $6,500 – though the Medical Arbitrage Company risks losing money.