Medical debt is one of the biggest issues facing the healthcare sector in the U.S. today. In most cases, people do not prepare for medical emergencies, which may arise at any point, and seek medical services without knowing how they will pay for them. Other times, the cost of the doctor’s bill, hospital costs, and prescription medication all exceed the person’s budget limits.
While you may feel compassionate and not want to pursue patients for medical debts, patient arrears may strain your facility and even drive it out of business. So, patients promptly paying their bills is directly connected to your facility’s ability to administer services to other people in dire need of your services.
That said, recovering medical arrears from patients who have defaulted on their bills is not the easiest task in the world. So, most medical facilities turn to collection agencies to recover outstanding debt. But is it worth it? Here are some reasons why it’s a great idea to hire a debt collection agency:
One of the biggest benefits of hiring a debt collection company is the actual costs it can save you. Following up on arrears, including constant contact, skip tracing, and even legal litigation can quickly rack up your expenses. On top of that, you may need to hire extra staff or add on debt collection tasks to your current employees.
However, a debt collector is usually cheaper and won’t charge you if they don’t recover anything. Moreover, they are well informed on debt collection laws, saving you from unnecessary legal costs.
The law is very complex, and even with the right intentions involving coming up with debt repayment plans for bill defaulters, you may find yourself dealing with litigation cases. The legal risks of collecting debts yourself can lead to additional costs for your business, not to mention the time and labor resources required if you don’t have an in-house law firm.
Debt collection agencies are specialized in fair debt collection practices since their knowledge of the relevant laws guides their approach. So, you can lower your risk of legal issues down the line by getting an agency to claim unpaid bills for you.
Debt collection is a skill and an art. Some methods work, and others don’t work as well. As a person who has no experience dealing with debt collection, you can waste a lot of time experimenting with different strategies, often with little results.
However, debt collection agencies already have the required experience to handle your cases. They know what to do and how to do it, to recover as much debt as possible. Since it is their specialty, they have the time to follow up persistently and pressure defaulters into paying. The result? You will have higher and faster debt payment rates. That said, the fees you will pay the debt collectors will be well worth it compared to the amount of debt collected.
Providing essential medical services continuously but not paying for the work can quickly eat up your working cash flow. Before you know it, you will be struggling to pay staff, buy medication and equipment to keep the facility running.
So, a debt collection agency can help you maintain your facility’s cash flow by collecting much of the cash tied up in bill arrears.
Have you tried to contact a bill defaulter only to hear they skipped town and are nowhere to be found? As a person whose main job is not tracking people, such news could mean a dead end. But with experienced debt collectors, you can recover debts you have given up on or had even considered writing off.
That is because debt collection agencies specialize in what is known as skip tracing. This process essentially locates people who moved away and consequently avoided paying off debt. Skip tracing is usually done if a defaulter refuses to respond to calls, emails, or any other form of communication.
If you have to follow up on everyone with an outstanding bill in your client list, you would likely have to dedicate several hours every day to this. You will find that even one client may take up several days to weeks before they clear their bill- if at all they agree to pay without issues.
This schedule setup diverts your attention from the core business of running the medical facility or treating patients who need medical care. So, if not for anything else, you can hire a debt collections agency to delegate the tedious responsibility of pursuing debtors so that you can otherwise focus on other key aspects of running the hospital.
Debt collections agencies will help you recover as much debt as possible. However, some clients will still refuse to pay or commit to a payment plan. In this case, you may decide to pursue legal action to recover your monies.
To build a solid case and get damages, you need ample evidence to prove that you did all possible to avoid legal action.
Collection services usually record and store all communication with defaulters to maintain professionalism and have documents for future reference. That means you can pursue what you are owed in court.
Are you tired of dealing with stalling customers, bounced checks, and false promises of payments? Is your facility suffering financially from huge arrears?
It is time you implemented a debt collection process strategy that works- bringing a professional debt collection company on board. At HMS Collections, we specialize in medical debt recovery in St. Louis, MO. Our job is to accelerate debt repayment and increase cash flow for your practice. Give us a call at 636-535-2007 to talk to a debt collection specialist today about any unpaid debt you need to be recovered or even legal advice.