Medical offices are at a point where every unpaid claim or balance due by a patient is detrimental to the practice. So with that said when is it time to hire a collection agency to recoup on this uncollected revenue? Steps should be taken in order to evaluate a physicians practice to determine if it’s worthwhile to do so. Below are questions to consider.
1. What is the total amount that is 120 days past due from a patient?
2. Is there a record of statements that have been sent to the patient?
3. Has there been any collection letters from the physician’s office sent?
Most collection agencies require a contract for a specified period of time and a percentage of each account that has been collected on.
With the cost of healthcare rising every year and insurance carriers raising costs for patient co-pays, deductibles, and higher premiums has caused consumers to not be able to pay their portion. This increases the likelihood that many accounts will default and become delinquent.
With the consumer debt being the highest in U.S. history, consumers are struggling to pay their car payments, credit card bills and mortgages. To most people those bills are at the forefront of their minds and come first in their budgets. Medical bills become a lesser priority after services are rendered when strapped with other bills.
When sending collection letters and statements from the physician’s office, some patients don’t take them serious at all. They do tend to respond to medical debt collection agencies that communicate that they will report the failure to pay to credit bureaus.
Many medical practices do admit that they need an outside third party collection agency but are afraid to do so because of the doctor-patient relationship and also the possibility of negative public relations issues.
It’s important for physicians to do their research. Consulting with colleagues is a good way to find out if they use a collection agency and which one. Ask them how they like the agency and how long they have been with them. Check with the Better Business Bureau to find out the reputation of the company. Find out if the company will offer a free trial period to see how well they perform.
Consider adding this feature to your financial policy that patient’s sign before being seen. Let them know that your office will take further action from a third-party collection agency and it will reflect on their credit if payment is not received in a timely manner. By reviewing the steps above and doing thorough research, a physician’s office will be able to determine whether or not their office should hire an outside collection agency.
