When selecting credit collection services that are ideal for your own billing collection program, you need to keep two major points in mind. First, and most apparent, try to find reliable and experienced credit collection companies, not general industry debt collectors. 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 adequate. In order to maximize the repayments on your past due accounts, as well as have a good doctor-patient relationship, you have to take one more step.
The second, and key, element to take into consideration is that the credit collection services understand and also have collected for your specialty. It may require a bit additional time to locate an experienced agency, but the results will be well worthwhile, and perhaps even impact your patient’s health.
Consider, for example, in case your specialty is psychology. Many psych patients are dealing with problems that impact their emotional well being, some to the extent where 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 could have serious consequences on a patient whom, for instance, you just kept from committing suicide some time ago. A collections agent who has experience with this field does, however, and will not only work to collect past due bills, but will do this in a manner that is responsive to the situation of the patient.
Similarly, a collections agency which specializes in chasing down deadbeat Dads who don’t pay their child support are probably not just a good match for dealing sensitively along with your patient that is dealing 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. As the flat fee collections approach is usually cheaper initially, you need to wonder how motivated the credit collection agencies will probably be to accumulate your money when they have previously been paid theirs upfront. Most collection agencies work over a percentage basis and you should not get compensated unless you get paid, unless you have chosen an “early out ” program. (“Early Out” describes outsourcing your unpaid claims at an earlier time compared to more familiar AR Recovery Program, which is usually after 120 days.)
Other Considerations: Make Sure These Are Licensed. When the credit collection services are not licensed, you are liable should they violate any collection laws. On that note, make sure they conform to the Fair Debt Collection Practices Act (FDCPA), which issues specific guidelines on collection practices.
Be Certain These Are Insured and Bonded. This makes sure that in the event 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 from any legal liability in the event the agency violates any collections laws or practices. If you do not get this agreement on paper, you may take place liable for their collections practices since you hired them to do your collections.
Ascertain the Credit Collection Services Success Rate. Obviously, the greater the rate of success the greater, but stay in mind that the percentage they charge will likely be higher as well.
Will they employ Skip-Tracing? Patients who may have moved and not left a forwarding address–whether deliberately skipping town on the debt or simply not remembering to contact your workplace–can be difficult to monitor down. Using a credit bad yvewzf collections service which employs this method can improve your collection rate. Following these tips in selecting your credit collection services can greatly increase the total amount you will collect on the past due accounts.