Medical Collection - DHS didn't pay billin time

[pilgrimfaraway]

1. My mother-in-law (MIL) takes care of severely handicapped kids as a foster parent in the State of California.

2. CA DHS is responsible for all approved medical expenses

3. MIL signed some document accepting ultimate financial responsibility for bills

4. Services were rendered in January 2007

5. Bill was submitted to DHS for payment. They followed up every 2 weeks by phone (no written records), payment was never made

6. May 25, 2007 account sent to collections

7. DV has not been sent, but will be sent tomorrow

8. I plan to advise MIL to send a letter to the hospital and describe the situation, which looks very bad - she takes care of handicapped kids. hospital was told that DHS is responsible for the bills. Now they are ruining her credit. Plan to advise same letter to DHS. In both letters, indicate that the media has not yet been involved, but will be if the issue isn't resolved

 

Please advise.