Many people forget that healthcare organizations are for-profit businesses. Just like any other business, healthcare providers have overhead costs to maintain, staff to pay, and important expenses to cover.
When patients skip out on their bills, these organizations become at risk for experiencing limited cash flow and revenues. Unfortunately, all of this can take place even after healthcare has been rendered to the patient and vital resources have been spent.
For this reason, it’s never been more important to hire a medical collection agency to collect delinquent payments. Below, you’ll find 10 more reasons why you should hire a medical debt collector for your healthcare organization.
1. Multiple Patients Haven’t Paid Their Bills
In any standard business, there may be one or two unpaid invoices at a time. When unpaid bills pile up, healthcare providers are placed into a precarious situation. They must act quickly to recover spent resources and cover their monthly expenses.
On top of that, they have to pay their staff in order to stay open. If multiple patients are neglecting their medical bills, then you’ll need to act fast to recover this debt. With that said, hiring a medical debt collector is definitely in your best interest.
2. You’ve Forgotten How Many Overdue Accounts You Have
Another reason why you should hire a medical debt collector is if your list of overdue accounts is growing. You may not have realized that this problem is as worse as it currently is.
Nonetheless, a growing list of overdue accounts is a troubling sign for the liquidity of your business. Hiring a medical debt collector will allow you to collect missing payments and deliver financial relief for your health coverage programs.
3. You Don’t Have the Resources to Do the Job
As a local healthcare practitioner, you may only have the resources to hire front desk staff, medical assistants, and nurses. What you may not have the resources for is hiring a full-fledged team to collect delinquent payments from your patients.
If this is the case, hiring a medical debt collector may be in your best interest. Making this hire will allow you to save time in chasing delinquent payments and focus on other important business practices.
4. You Haven’t Been Successful in Collecting Delinquent Payments
Collecting delinquent payments is difficult if you are experiencing multiple open accounts. You’ll need to reach out personally to patients and convince them to pay their outstanding balances along with any added interest, which is no small feat.
Debt collection agencies rely on top-notch technologies and proven methods for finding, contacting, and compelling clients to pay their debts. Even if you have the resources to hire a debt collection team, chances are you won’t possess these kinds of tools to be effective.
5. You Can’t Contact Patients with Unpaid Debts
Everyone knows that when people are faced with debt, they often ignore calls from debt collectors. They’ll shred or throw away notices in the mail and do their best to avoid any communication with debt collections.
If you’re operating on your own, finding these patients can be tough. Hiring a medical debt collector can play in your favor for the following reasons:
- You can rely on top-notch technology to keep track of open accounts.
- You can use proven methods to convince patients to pay their debts.
- Your organization can consolidate debts and reach agreements with multiple patients.
6. Your Patients are Located in New Areas
Sometimes, you can provide service to a patient only for them to move to a new area. When this happens, you can lose contact with a patient forever if you haven’t already been keeping tabs on them.
Besides, different states may have their own set of laws when it comes to collecting medical debts. Instead of performing extensive research about how to legally contact patients about their debt, hire a medical debt collector to do all the work.
7. Many Bills are Long Overdue
Medical bills that are past 90 days due can become extremely problematic for a healthcare practitioner. These bills must be paid immediately to restore lost profits to medical practices.
Otherwise, these businesses face the risk of taking out loans and potentially going bankrupt if these losses continue. If you’re growing tired of seeing overdue bills in your books, it’s important to hire a medical debt collector for more assistance.
8. You Have Trouble Understanding Debt Collection Laws
In all 50 U.S. states, there are laws concerning what debt collectors can do to collect missing payments. This ensures that consumer and business rights are both protected.
If you’re ignorant of these laws, you could face stringent penalties and even a lawsuit. This is especially true if the plaintiff claims you are harassing them, even if they haven’t paid you a dime for past medical services.
You can’t risk paying for litigation on top of missing debt payments. Hire a medical debt collector to avoid the onset of a lawsuit and to follow the law by the book.
9. Your Organization Needs Immediate Cash Flow
One of the main reasons businesses fail is due to a lack of cash flow. If your profits aren’t liquid or readily available, it will severely limit the spending potential your business has.
This can become catastrophic if your organization faces a financial emergency and you don’t have the profits to weather the storm. If you’re desperate and need immediate cash flow, hiring a medical debt collector may be your best option.
This way, you can quickly start the debt collection process and bring valuable dollars to your bank account.
10. You Need Organized Documentation
It’s important to keep organized records about your interactions during the debt collection process.
As a result, you’ll be able to defend yourself in case someone sues your business for harassing them. On the other hand, keeping accurate records is necessary by law if you are giving out a debt write-off.
Ready to Hire a Reputable Medical Collection Agency?
If you’re ready to capitalize on all the benefits of hiring a medical collection agency, we’re here to help you make the right decision. Contact us today to learn more about how you can become a client.