Had an emergency surgery, bill went to collections and they offered to settle the bill. What now?

I have a couple of questions about which route I should take.

I had a unexpected, emergency surgery a few months ago. This was my first ever surgery as well as the first time using my own insurance and not my parents. I started to get a ton of bills/statement of benefits in the mail that completely overwhelmed me. I should have started taking care of things then instead of waiting.

I got a letter in the mail from a collection agency (HRRG) stating that I owed a certain amount of money but that their “client” (which I assume is the hospital) authorized a settlement option. The letter states that if I make a one-time payment of about 40% of the total amount I will settle the balance.

What are my best options? Should I pay the bill through HRRG? Reach out directly to the hospital to set up a payment plan for the full total? See if I can pay the hospital the settlement directly? If I set up a payment plan with the hospital will HRRG get off my back about the collection? I do plan on reaching out to patient advocacy to see what I can do about the rest of the bills. I have to pay about another $40,000 after insurance. This specific bill is my ER bill it seems.

We will be closing on a house in about a month so I have to do this ASAP so it doesn’t hit my credit. Any advice would be appreciated as it’s the first time I’m taking over my medical bills and learning the process.