If they go to collection then, yes, they will go against ones credit.

Most hospitals have a plan where for a ONE time only they will greatly reduce or even write off ones bill. Check with them. If not, they have to accept as much as you can pay them in a month.

Do not let them tell you that you have to pay a certain amount each month, they don't have the right to do that not knowing your income level or living expenses. You tell them how much you can afford. If you can't anywhere with the one person as to talk to a supervisor.