My understanding is that the medical debt which this charity purchases and then forgives has already been deemed uncollectable, usually because the statute of limitations has run on it. That is why they are able to purchase it for pennies on the dollar. Just because a debt is barred by the SOL does not mean a unscruplous debt collector will still not try to collect on it. We have had such reports on here. So this charity is performing a service in removing the debt for possible fraudulent and unscruplous debt collects, but they are not really paying off recent and collectable medical debt. I could be mistaken about this and don't mean to demean a valid charity.
Great story. Also, John Oliver from "Last Week Tonight" on HBO did this a little over 2 years ago by starting his own debt collection company and buying 15 million in out of statute medical debt for around $60,000. The whole segment of the show is on YouTube, and is very enlightening: https://youtu.be/hxUAntt1z2c?t=1025