When picking credit collection services that are perfect for your own billing collection program, you will have to keep two major points in mind. First, and most evident, look for reliable and experienced credit collection companies, not general industry debt collectors. 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 sufficient. In order to maximize the payments on the past due accounts, as well as maintain a good doctor-patient relationship, you should take yet another step.
The second, and key, element to consider would be that the credit collection services understand and have collected for your specialty. It may have a bit more time to locate a seasoned agency, nevertheless the results will be well worthwhile, and perhaps even impact your patient’s health.
Consider, for instance, if your specialty is psychology. Many psych patients are coping with issues that impact their emotional well being, some to the extent in which the added stress of collections may 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 on the patient whom, for instance, you just kept from committing suicide a few months ago. A collections agent that has experience in this field does, however, and definately will not merely work to accumulate past due bills, and definitely will do so in a manner which can be sensitive to the circumstance in the patient.
Similarly, a collections agency that focuses on chasing down deadbeat Dads who don’t pay their children support are most likely not just a good match for dealing sensitively with your patient who 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. As the flat fee collections approach is frequently cheaper initially, you need to wonder how motivated the credit collection agencies will be to collect your cash when they have previously been paid theirs upfront. Most collection agencies work on the percentage basis and never receive money until you get compensated, unless you have selected an “early out ” program. (“Early Out” describes outsourcing your unpaid claims at an earlier time compared to more familiar AR Recovery Program, that is usually after 120 days.)
Other Considerations: Be Certain They May Be Licensed. If the credit collection services usually are not licensed, you are liable should 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 These Are Insured and Bonded. This helps to ensure that in the case of a lawsuit, the company will have the financial resources to cover 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 take place accountable for their collections practices since you hired these to do your collections.
Ascertain the Credit Collection Services Rate Of Success. Obviously, the greater the effectiveness the better, but stay in mind the percentage they charge is going to be higher as well.
Do they employ Skip-Tracing? Patients who have moved rather than left a forwarding address–whether deliberately skipping town on the debt or simply not remembering get in touch with your business–can be a challenge to monitor down. Employing 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 sum you will collect on the past due accounts.