When picking credit collection services that are best for your own billing collection program, you need to keep two major points in mind. First, and most evident, search for reliable and experienced credit collection companies, not general industry collection agencies. This is clearly not revolutionary advice; the mistake many doctors make is simply stopping here believing when they have a credit collection service this is adequate. In order to maximize the payments 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 take into consideration would be that the credit collection services understand and possess collected for your specialty. It may take a bit more time to discover an experienced agency, but the results is going to 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 working with concerns 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 does not have experience dealing both firmly but sensitively with psych patients; using hardball collections tactics may have serious consequences over a patient whom, for instance, you just kept from committing suicide a few months ago. A collections agent who may have experience with this industry does, however, and can not only work to accumulate past due bills, and can do this in a manner which can be understanding of the problem of the patient.
Similarly, a collections agency which specializes in chasing down deadbeat Dads who don’t pay their children support are probably not just a good match for dealing sensitively along with your patient who may be dealing with heart surgery. Choosing credit collection services with specific experience with your field will both maximize results and benefit your patients.
Be skeptical of Flat Fee Collections. As the flat fee collections approach is usually cheaper initially, you need to wonder how motivated the credit collection agencies are going to be to accumulate your hard earned money if they have previously been paid theirs upfront. Most collection agencies work on a percentage basis and you should not receive money except if you get compensated, unless you have selected an “early out ” program. (“Early Out” identifies outsourcing your unpaid claims with an earlier time than the more familiar AR Recovery Program, which can be usually after 120 days.)
Other Considerations: Make Sure These Are Licensed. In the event the credit collection services are not licensed, you might be liable if they violate any collection laws. On that note, be sure they comply with the Fair Debt Collection Practices Act (FDCPA), which issues specific guidelines on collection practices.
Be Sure These Are Insured and Bonded. This makes sure that in case of a lawsuit, the company may have the financial resources to pay for any related legal fees.
Demand a Hold Harmless Agreement. This written agreement will protect you against any legal liability in the event the agency violates any collections laws or practices. Unless you have this agreement in creating, you may take place accountable for their collections practices because you hired these to do your collections.
Ascertain the Credit Collection Services Rate Of Success. Obviously, the greater the success rate the better, but stay in mind the percentage they charge will likely be higher as well.
Do they employ Skip-Tracing? Patients who have moved and never left a forwarding address–whether deliberately skipping town on the debt or just not remembering to make contact with your workplace–can be hard to track down. Utilizing a credit bad yvewzf collections service which employs this method can improve your collection rate. Following these guidelines in selecting your credit collection services can greatly increase the total amount you will collect on the past due accounts.