Did you know that the most common cause of bankruptcy is medical debt rather than poor spending habits? Compared to other countries, the United States spends the most per person on health care.
We understand that as a medical healthcare professional, your top responsibility is to provide the best possible care to your patients. If you have your private practice, however, you must also prioritize expanding your bottom line, paying your staff, and continuing to invest in your practice.
Balancing the roles of a healthcare provider and proprietor can be difficult. Therefore, it might be time to choose to partner with medical collection agencies.
Do you want to improve your practice’s bottom line and receivable accounts approach while still keeping good relationships with your patients? Let’s take a look at these threebenefits of using medical collections agencies.
3 Advantages of Using Medical Collection Agencies
It should come as no surprise that recovering an outstanding debt is a hardship that someone must bear. However, using a collection agency is the most efficient and practical approach to clean up your Receivables.
1. Frees Up Time to Focus on Your Relationship With Patients
It goes without saying that, as a business owner, one of the most essential areas you’re continually managing is your client relationships, no matter what industry you’re in. It’s pretty clear that you do not have a practice without patients, so keeping good relations is a top priority!
One of the most common misunderstandings about partnering with a medical collections agency is that it will cause your patients to leave your practice. This is not true and can be the total opposite. When it comes down to it, your collection agency will:
- Collaborate and keep you informed of your accounts receivable
- It helps you collect monies owed more efficiently and quicker.
- Helps deal with challenging debtors. It’s not always easy to contact past-due payment patients, and battling with non-paying clientele is never fun
- Take the heat off of your staff. Speaking to patients about past-due accounts isn’t always easy, and no one enjoys dealing with clients who try to avoid payment
- Provides you with detailed documentation in case you need it for either court or tax rebates
- Use up to date and various debt collecting tools, methods, and programs
- You will be provided with legal protection because some numerous laws and regulations control the manner in which business debts should be addressed and collected
Taking over all of the above tasks will free up your time so that you can develop your customer relationships while motivating them to pay any outstanding invoices and medical bills.
A solid business foundation for your practice is established and maintained by healthy client relationships. This supports its growth by:
- Generating steady income
- Repeat patients
- New recommended patients
- A positive cash flow
When you engage a collection agency, you spare yourself from the unpleasant chore, allowing you to focus on what is most essential – your practice.
2. Successful Medical Debt Recovery
Debt collection agencies have extensive knowledge in this industry. They are particularly experienced in collecting outstanding bills. This is why using a collection agency increases your chances to recover debt.
Dealing With the Calls
Dealing with stumbling blocks and complaints during debt collection is a part of the job. But there’s much more to debtors than just a refusal to pay. Debt collection agencies have the skills and some tactics that can assist agents in identifying:
- Debtor types
- Debtor emotions
- Reasons for non-payment of the debt
- Make the patient feel good
- Tell them what the agency can do for them for the debtor to liquidate the debt
They can relate to patients more positively while collecting outstanding debts.
Dealing With the Laws and Regulations Regarding Debt Collecting
Anyone collecting money must abide by all regulations that govern the debt collecting services they are being paid. Among them are:
- The Consumer Financial Protection Act
- The End Debt Collector Abuse Act
- The Fair Credit Reporting Act
These laws govern when, how, and how frequently you can contact a debtor. Medical collection agencies know how to comply with these laws.
A collection agency can handle all legalities. Filing a lawsuit to collect a debt is only one step in the collection process. Collection agencies understand what they are doing and have a better probability of recovering the debt.
Expedites Collection Rate
Most people have this mental image of debt collection agencies as ogres. Although this reputation might be detrimental at times, it can also be advantageous. When they receive phone calls or letters from professional medical debt collectors, people tend to sit up and pay attention more so than if you call them.
Medical collection agencies often employ more persistent and demanding ways of recovering outstanding debt, which results in a better success rate. Therefore, hiring a medical collections agency increases your chances of receiving full payment.
It’s like a strong wake-up call to patients, telling them you’re serious about recovering debts. Notification that you are not about to forget or dismiss unpaid bills. The increased urgency that debt collection businesses create drives customers to pay their past-due obligations faster.
Are You Trying to Rebuild Your Practice Post COVID-19 Times?
After 2020 to 2021 and the COVID-19 epidemic, many small and medium-sized businesses, including dentistry and healthcare practices, strive to recover their client debt. Why do you ask? Because people frequently do not pay for treatments immediately, it is difficult for providers to recover the debt from patients accumulated during these trying times.
If you want to improve your practice’s bottom line and accounts receivable approach, it might be time to join a medical collection agency.
Time Is Money, Collect Your Debt!
There are numerous advantages to delegating the management of your outstanding accounts to reputable and skilled medical collection agencies. The effectiveness and efficiency of your collection operations will improve, and you will be able to minimize legal risks. You will also have access to essential professional guidance regarding credit management.
As a result, you can spend more time and money on the most important things to your business. Outsourcing debt collection is one way to do this. Instead of going after debtors, you can spend your time and energy on day-to-day operations. This way, you can accomplish more objectives and move your practice towards profitability and growth.
Are you considering hiring a collection agency? Contact us. We have established a proven record of recovering debts for businesses in various industries, including the medical field!