When choosing credit collection services that are best 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 when they have a credit collection service this is adequate. In order to optimize the repayments on the past due accounts, as well as maintain a good doctor-patient relationship, you should take an additional step.
The second, and key, element to consider would be that the credit collection services understand and possess collected to your specialty. It may require a bit additional time to discover a skilled agency, but the results is going to be well worth the cost, and perhaps even impact your patient’s health.
Consider, for instance, in case your specialty is psychology. Many psych patients are dealing with issues that impact their emotional well being, some towards the extent where the added stress of collections might be detrimental for 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 industry does, however, and will not only work to accumulate past due bills, and can achieve this in a manner which can be responsive to the problem 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 along with your patient that is recovering from 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 often cheaper initially, you must wonder how motivated the credit collection agencies are going to be to gather your cash when they have previously been paid theirs upfront. Most collection agencies work on the percentage basis and never get paid except if you get paid, until you have chosen an “early out ” program. (“Early Out” refers to outsourcing your unpaid claims with an earlier time compared to more familiar AR Recovery Program, which can be usually after 120 days.)
Other Considerations: Be Certain They May Be Licensed. In the event the credit collection services are certainly not licensed, you might be liable when 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 They May Be Insured and Bonded. This ensures that in the case of a lawsuit, the company will have the financial resources to pay for any related legal fees.
Insist upon 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. Unless you have this agreement on paper, you may take place responsible for their collections practices as you hired these to do your collections.
Ascertain the Credit Collection Services Success Rate. Obviously, the higher the effectiveness the better, but keep in mind the percentage they charge will likely be higher as well.
Do they really employ Skip-Tracing? Patients who may have moved and never left a forwarding address–whether deliberately skipping town on the debt or just not remembering to contact your business–can be difficult to track down. Utilizing a credit bad yvewzf collections service which employs this technique can boost 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.