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Medical Data Systems has flagged your account as collections

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Medical Data Systems has flagged your account as collections

I have a question and have not been able to find much information on it. I have been working to rebuild my credit recently and have had a few items removed. I had 2 accounts with Medical Data Systems. I had one deleted and the other I am still in the process of disputing with the OC. There was an issue of transitioning to a new billing system and they cannot locate this account. I have been unable to obtain any information regarding this account and have disputed it with MDS. They reported it to the CRB's on March 27th 2017. On March 29th I got an alert saying "Medical Data Systems has flagged your account as collections" It was already noted as a collections account when it was reported. Two days later I received another alert stating "Diversified Consultants has flagged your account as collections" Diversified has been on my credit report for 7 months and was also already noted as collections. These are the only two collection accounts on my reports. What is the purpose of doing this? I thought maybe this was a way of trying to keep my scores stagnant since I have been rebuilding but havent been able to find much information related to why CA's do this. Any input would be greatly appreciated. 

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