If you run a medical facility, you likely have several expenses to pay. Like any other business, you have to keep the lights on and the water running. However, you also have more to do.
Medical facilities rely on up-to-date equipment to treat patients, in addition to making life easier for their workers. They also require new training to keep their practices as efficient as possible.
It can be difficult, if not impossible, to afford this without a consistent cash flow. That’s why you need patients to pay their medical bills.
A medical bill collection agency can help with this. Although hiring a debt collection agency may seem extreme, it’s the best way to ensure unpaid bills become paid.
However, like medical tools, a debt collection agency requires precise and methodical usage. Otherwise, you may not receive the best service from them.
So, how can you get that service? What are some ways to ensure you use a debt collection company efficiently?
If that’s what you’re wondering, you’ve come to the right place! We’ll explore how to use medical debt collection services in the guide below. Read on to find the four tips you need!
1. Understanding Legal Limits of a Medical Bill Collection Agency
Using a debt collection service efficiently starts with knowing its limitations. Generally, a debt collection agency has significant freedom to perform its task. However, federal and state laws also apply that can limit an agency.
Debt collection services are governed at the federal level by the Fair Debt Collection Practices Act (FDCPA). This act exists to protect ordinary consumers from abusive, unfair, or deceptive practices from collecting agencies. However, note that it does not cover business debt.
So, what are some of the restrictions put in place by this act? First, it prohibits an agency from contacting debtors at a time or location that is inconvenient for them, such as their workplace.
It also limits the time of contact. Debt collection services can only contact debtors between 8 a.m. and 9 p.m.
Furthermore, a debt collection agency cannot harass debtors in any way, whether by phone or other means of contact. Finally, if an attorney is representing the debtor, the agency must limit contact to this representative.
As you can see, federal law has relatively few restrictions. However, choose an agency that abides by all of them. A collector that uses any rogue practices could cause trouble for you and drive patients away.
Finally, please note that state restrictions can exist as well. For example, a new law took effect this year in California that updated Civil Code Section 1788.14. This update places increased restrictions on hospitals and their ability to sell debt to collection agencies.
2. Using a Debt Collection Agency to Keep Track of Overdue Accounts
We’ve covered what types of laws affect your use of debt collection services. Now, let’s talk about using these services to your best benefit.
The first thing to understand about a debt collection service is that they don’t just collect your debt. Instead, these services work alongside your facility to cover any weaknesses in your record keeping.
Let’s face it. Hospitals and other medical practices have their hands full with many operations. Between seeing patients, running tests, and scheduling appointments, you may not have time to keep track of your overdue bill accounts.
These agencies, however, often specialize in tasks like this. They can monitor your overdue accounts to ensure your financial situation remains secure.
These businesses also have an advantage that many medical practices lack. A smaller medical facility may not have the staff to spare for contacting patients with outstanding debt. However, a debt collection service has all the necessary staff for contacting debtors and negotiating repayment.
3. Preventing Overdue Unpaid Bills From Piling Up
We talked in the last section about how debt collection services can manage your overdue accounts. As such, they can keep track of your financial situation more efficiently than in-house staff members.
Since medical businesses exist to help people, they often risk being too charitable for their own good. As a result, they let people go too long without paying back their bills.
While the motivations for this may be pure, it has harmful effects on your practice. Instead, you can sell the debt to debt collection services.
This service benefits you because it prevents unpaid bills from accumulating. From there, their staff will use the best methods in the business to ensure your patients pay their bills.
As your unpaid bills decrease, they’ll become easier to manage. However, they also provide a final benefit to your business. We’ll discuss this more in the next section.
4. Ensure Consistent and Immediate Cash Flow
As your unpaid bills become paid, you’ll see an increase in your cash flow. Over time, your practice will begin to receive a much more consistent cash flow than it did when several outstanding debts existed.
This benefit is of tremendous importance for a medical practice. As we said at the start of the article, medical facilities have their own bills to pay. You rely on state-of-the-art equipment to ensure your diagnostics and tests provide the best results.
Equipment costs are just one of many costs for your business. Depending on your practice, you may also have to stock your facility with pharmaceutical treatments and shots.
Likewise, there are standard business costs like energy and water bills to contend with. Your business also needs enough income to pay your staff and provide them with benefits.
As you can see, your business relies on a constant cash flow. Hiring a debt collection agency can ensure you receive the funds you need!
Hire a Debt Collection Agency Today!
A medical bill collection agency can provide several benefits to your medical facility. You can use their services to manage patients’ outstanding bills and keep a constant cash flow.
The only thing left is to decide on a collection agency to hire. If you haven’t found one, allow us to recommend our services!
We provide an expert team of flexible debt recovery specialists to our clients. We also guarantee you’ll receive no upfront costs or hidden fees when you work with us.
If you’d like to receive these benefits, don’t hesitate. Contact us today about becoming a client. We look forward to hearing from you!