When picking credit collection services that are best for your own billing collection program, you will have to keep two major points in mind. First, and most evident, search for trustworthy 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 if they have a credit collection service this is adequate. In order to increase the repayments on your past due accounts, as well as maintain a good doctor-patient relationship, you need to take an additional step.
The second, and key, element to take into consideration is the fact that credit collection services understand and possess collected to your specialty. It may require a bit additional time to find a seasoned agency, but the results is going to be well worth the cost, and perhaps even impact your patient’s health.
Consider, as an example, in case your specialty is psychology. Many psych patients are coping with problems that impact their emotional well being, some for the extent in which the added stress of collections could be detrimental to 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 a patient whom, as an example, you just kept from committing suicide a few months ago. A collections agent that has expertise in this field does, however, and definately will not only work to accumulate past due bills, and can achieve this in a manner which can be sensitive to the circumstance of the patient.
Similarly, a collections agency that specializes in chasing down deadbeat Dads who don’t pay their child support are probably not just a good match for dealing sensitively with your patient who may be coping with heart surgery. Choosing credit collection services with specific expertise in your field will both maximize results and benefit your patients.
Be suspicious of Flat Fee Collections. While the flat fee collections approach is usually cheaper initially, you must wonder how motivated the credit collection agencies will be to accumulate your cash when they have previously been paid theirs upfront. Most collection agencies work over a percentage basis and do not receive money until you get paid, unless you have chosen an “early out ” program. (“Early Out” refers to outsourcing your unpaid claims with an earlier time than the more familiar AR Recovery Program, which can be usually after 120 days.)
Other Considerations: Be Sure These Are Licensed. In the event the credit collection services are not licensed, you might be liable when they violate any collection laws. On that note, be sure they adhere to the Fair Debt Collection Practices Act (FDCPA), which issues specific guidelines on collection practices.
Be Sure They May Be Insured and Bonded. This makes sure that in the case of a lawsuit, the company may have the financial resources to pay for any related legal fees.
Insist upon a Hold Harmless Agreement. This written agreement will protect from any legal liability in the event the agency violates any collections laws or practices. If you do not buy this agreement in creating, 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 greater the effectiveness the greater, but keep in mind that the percentage they charge will be higher as well.
Will they employ Skip-Tracing? Patients who have moved and not left a forwarding address–whether deliberately skipping town over a debt or just not remembering get in touch with your business–can be difficult to follow down. Using a credit bad yvewzf collections service which employs this procedure can improve your collection rate. Following these tips in choosing your credit collection services can greatly increase the amount you will collect on the past due accounts.