This is a very effective program that will yield great results. It is intended to be a follow on to your already established first placement collection agency and will only minimally impact your current relationship with the collection agency. The agency would still do your first placement collections, but after three months of intensive collection agency action, the active accounts without payment or payment plans would be sent to our firm for a second phase collections.
We typically obtain outstanding results with recoveries in the 7 -12 % range depending on the balance size, age of the account and other factors. This program can be used for non-medical accounts too. The difficult financial environment is posing challenges to the collection of medical accounts, particularly the self-pay accounts and the insured patient who has a large deductible plan. Insured patients with high deductible plans will resist paying what is owed in a fashion similar to the self-pay patient. Neither class of patient is, in today's environment, an easy collect.
Based on our analysis, we believe that the collection of first placement accounts will be even more difficult than it is now and that is the reason more and more health care providers are second placing accounts.
Clients are surprised at how much we are able to collect after they have been previously worked by their primary collection agency. We are really good at this. Not only would our collection efforts yield outstanding results but our efforts would also encourage your patients to pay future accounts at the client's payment window before going into bad debt. Yes, it really works this way.