We all know medical care can save your life — but the bill that comes afterward might just knock the wind out of you.
The health policy organization KFF reports that Americans owe at least $220 billion in medical debt. One unexpected trip to the emergency room or a surprise surgery can leave you staring at numbers that feel impossible to handle.
Consider This: Dave Ramsey Says This Is the Best Way To Pay Off Debt
Read More: Clever Ways To Save Money That Actually Work in 2025
But while a huge medical bill can shake up your finances (and your peace of mind), it doesn’t have to define your future.
GOBankingRates spoke with Robert Grunnah, CEO and owner of Austin House Buyer, to discuss how medical debt can spiral — and, more importantly, how you can start bouncing back.
The Tsunami of a $150,000 Medical Bill
Grunnah said he’s seen firsthand how quickly financial security can be lost even in his own business.
“A few years ago, a medical bill of over $150,000 threatened to derail my business and personal finances, and I had to completely relearn how to manage debt, credit, and cash flow,” he recounted.
Grunnah said that bill was a tsunami. Even with insurance, out-of-pocket costs, denials and surprise bills added up in a way that had him scrambling.
For You: Here’s How To Build an Emergency Fund Without Blowing Your Budget
Negotiating Aggressively
The hardest part was not writing the checks, said Grunnah, so much as worrying about how much this was going to affect his long-term security.
“The very first thing I did was confront it head-on instead of ignoring the collection notices,” he said.
The CEO sat down with the hospital billing office and negotiated aggressively, asking for itemized bills, finding duplicate charges, and requesting early partial payment discounts.
“This alone cut the total amount due by nearly 25%,” Grunnah noted.
Prioritizing Preserving Credit
Rather than letting bills go into collection, Grunnah negotiated payment plans even if it was in smaller increments.
“Maintaining my credit score ensured that I was still able to secure business loans, which was critical in sustaining my business during that storm,” he noted.
At the same time, he cut every unnecessary budget item and put all available funds towards medical debt, treating it just like a mortgage payment.
Diversifying Income Streams Helps Recovery
“Real estate was always on my mind, but I invested twice as many rental properties to create a consistent monthly cash flow,” said Grunnah.
That provided a buffer and allowed him to absorb unforeseen medical charges more easily.
In the long run, that strategy not only helped him become debt-free but left him in a stronger financial position than he began in.
Among the solid lessons, he shared is this: “When medical debt piles up, don’t close off negotiation, prioritize, and protect your credit first. Debt is temporary, but the financial habits you form in crisis could shape your long-term stability.”
More From GOBankingRates
- Rachel Cruze: The Real Reason Couples Fight About Money
- 6 Best Items Retirees Should Buy at Costco During Labor Day
- 4 Things You Should Do When Your Salary Hits $100K
- 10 Cars That Outlast the Average Vehicle
This article originally appeared on GOBankingRates.com: The Medical Bill That Nearly Ruined My Life — And How I Rebounded
