When picking credit collection services that are perfect for your own billing collection program, you need to keep two major points in mind. First, and most obvious, try to find trustworthy and experienced credit collection companies, not general industry collection agencies. This is clearly not revolutionary advice; the mistake many doctors make is actually stopping here believing should they have a credit collection service this is sufficient. In order to increase the repayments on the past due accounts, as well as have a good doctor-patient relationship, you have to take an additional step.
The second, and key, element to consider would be that the credit collection services understand and have collected for your specialty. It may require a bit additional time to discover a seasoned agency, however the results will be well worth the cost, and maybe even impact your patient’s health.
Consider, for example, should your specialty is psychology. Many psych patients are dealing with issues that impact their emotional well being, some for the extent where the added stress of collections might be detrimental for their health. A general industry collections agent probably lacks experience dealing both firmly but sensitively with psych patients; using hardball collections tactics may have serious consequences on the patient whom, for instance, you just kept from committing suicide a few months ago. A collections agent who may have experience in this field does, however, and can not just work to accumulate past due bills, and definitely will do so in a manner which is understanding of the situation in the patient.
Similarly, a collections agency that specializes in chasing down deadbeat Dads who don’t pay their children support are probably not really a good match for dealing sensitively along with your patient that is coping with heart surgery. Choosing credit collection services with specific experience with your field will both maximize results and benefit your patients.
Be suspicious of Flat Fee Collections. Whilst the flat fee collections approach is usually cheaper initially, you must wonder how motivated the credit collection agencies are going to be to accumulate your hard earned money if they have already been paid theirs upfront. Most collection agencies work on a percentage basis and do not get compensated unless you get paid, until you have selected an “early out ” program. (“Early Out” refers to outsourcing your unpaid claims at an earlier time compared to more familiar AR Recovery Program, that is usually after 120 days.)
Other Considerations: Be Sure These Are Licensed. If the credit collection services are not licensed, you happen to be liable when they violate any collection laws. On that note, be certain they adhere to the Fair Debt Collection Practices Act (FDCPA), which issues specific guidelines on collection practices.
Make Sure They Are Insured and Bonded. This ensures that in the case of a lawsuit, the company will have the financial resources to cover any related legal fees.
Demand a Hold Harmless Agreement. This written agreement will protect you from any legal liability when the agency violates any collections laws or practices. Unless you buy this agreement on paper, you may be held liable for their collections practices because you hired these to do your collections.
Ascertain the Credit Collection Services Success Rate. Obviously, the larger the success rate the greater, but keep in mind that this percentage they charge will likely be higher as well.
Do they employ Skip-Tracing? Patients who may have moved and not left a forwarding address–whether deliberately skipping town on the debt or simply just not remembering get in touch with your office–can be a challenge to monitor down. Utilizing a credit bad yvewzf collections service which employs this method can improve your collection rate. Following these guidelines in choosing your credit collection services can greatly increase the amount you will collect on your own past due accounts.