| Debt collection from patients is a
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| | status on all collection activities,
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| conflict doctors often prefer avoiding
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| | including amount collected, actions
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| for fear of potential implications to
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| | taken, and patient responses. Include a
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| practice reputation and increased
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| | wide selection of reports available over
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| exposure to malpractice lawsuits.
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| | a secure Internet connection 24 x7.
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| Healthcare debt collections require
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| | Tight Cash Flow Control. All
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| unique combination of sensitivity, skill,
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| | collected money goes directly to your
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| and discipline. Understanding of debt
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| | practice or bank account, increasing
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| collections process and outsourcing
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| | positive cash flow and immediately
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| opportunities help the practice owner
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| | collecting interest. No waiting for a
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| improve revenue cycle while minimizing
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| | collection agency to take its percentage
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| practice risks.The best way to improve
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| | first and pay you at its convenience.
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| the patient payment component of the
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| | Lower Risk with Indemnification.
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| revenue cycle is to collect cash payment
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| | Collections agency must indemnify your
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| in advance for healthcare services.
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| | practice from lawsuits resulting from
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| However, without solid processes and
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| | collection efforts through a written
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| disciplined implementation, upfront cash
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| | hold-harmless agreement.
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| collection can challenge and frustrate
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| | Flexible Contact Style. Avoid
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| front office staff, often contributing to
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| | offending your patients. Collections
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| accumulation of outstanding patient debt.
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| | agency must be able to vary its patient
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| Insurance companies sending payments
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| | contact style (e.g., diplomatic or
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| directly to patients instead of the
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| | intensive) on a patient-by-patient basis
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| office further exacerbate the
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| | according to your specific direction.
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| difficulties of debt collection.A typical
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| | Patient Relationship Maintenance.
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| debt-processing scenario proceeds in
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| | Collections agency must not intrude on
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| three phases, starting with billing, to
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| | your relationship with your patient. If
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| debt accumulation, to selection of the
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| | you choose so, you should be able to
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| most appropriate collections method.
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| | maintain continuous control of patient's
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| Clear definition of responsibilities
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| | account, including negotiation of payment
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| along with payment arrangements help
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| | plans or dispute resolution directly with
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| effective collections, minimize practice
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| | your patient as a key element of the
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| risks, and reduce administration costs.
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| | collection process.
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| Billing Phase: Your billing office sends
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| | Economies of Scale and Fees
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| patient invoices and a number of reminder
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| invoices regarding outstanding balance
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| | Collections Letter Generation.
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| directly to the patient. Debt
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| | Generally, the procedure to collect a
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| Accumulation Phase: The patient does not
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| | debt starts with a letter to the person
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| pay the invoice for a time period
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| | that owes the money sent on the
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| exceeding desired limit (typically,
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| | letterhead of collections agency or
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| 90-120 days). Accounts receivable
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| | attorney firm. A letter from an attorney
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| distribution over the span of 30, 60, 90,
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| | often results in many outstanding debts
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| and 120 days takes the shape of inverted
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| | paid. Flat fees for sending such letters
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| horizontal S. Debt Collections Phase: The
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| | vary between $5 and $15 per patient per
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| practice must consider at least four
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| | month.
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| alternatives for outstanding debt
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| | Aggressive Follow Up Using Legal
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| collection:
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| | Assistance. If the letter does not
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| | result in payment, the collections agency
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| Dismiss the patient until all debt is
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| | must begin vigorous pursuit for
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| paid.
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| | outstanding monies. If payment is still
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| Offer the patient the opportunity for a
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| | not made on the outstanding invoice, a
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| financial hardship write-off.
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| | complaint is filed with the courts and
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| Take the patient to small claims court.
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| | served personally upon the debtor
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| Hire debt collections agency.First,
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| | requiring their appearance in court. The
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| dismissing a patient is not always an
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| | attorney then appears in court on behalf
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| appropriate option because of associated
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| | of medical practice to obtain an award of
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| reputation implications and potential
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| | the amount that is owed. Although the
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| medical malpractice risk. More
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| | court usually enters an award on behalf
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| importantly, dismissing the patient only
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| | of medical practice, it is important to
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| stops subsequent debt accumulation but
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| | note that collections are not completed
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| does not eliminate the already
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| | at the time of award. The collections
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| accumulated debt.Next, financial hardship
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| | agency must continue to pursue payment of
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| write-off may not be feasible as some
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| | all debts through any and all legal means
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| patients refuse or are ineligible for
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| | available, including wage garnishment,
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| it.Third, a small court can help
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| | bank account seizures, or, in rare cases,
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| collections only from patients with
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| | arrest. Success fees vary from 30% to
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| steady work and debt under $5,000, upon
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| | 50% of recovered debt.
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| paying a typical $75 processing fee.
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| | Even Focus Regardless of Balance Size.
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| Keep in mind that a small court limits
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| | Collections solution must be effective
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| its scope to liens and/or wage
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| | for all balances regardless of amount
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| garnishments instead of actually making
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| | owed.
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| collections.Finally, a specialized
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| | Interaction between Billing and
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| collection agency with thorough
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| | Collections
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| understanding of the claim payment
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| | Account Transfer Decisions. The
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| process and result-oriented and
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| | practice manager must control the flow of
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| accountable approach to customer service
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| | patient debt and all associated
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| recovers on average 15% of outstanding
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| | information from billing service to
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| debt.Key debt collections agency
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| | collections agency.
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| selection issues revolve around industry
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| | Account Transfer Mechanism. Billing
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| knowledge, performance, control, costs,
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| | service must facilitate the
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| and interaction between billing and
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| | infrastructure for simple, timely, and
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| collections services:
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| | effective decision-making and digital
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| Specialized Industry Expertise
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| | data transfer to maintain the highest
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|
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| | likelihood of successful debt collection.
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| Compliance and Certification.
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| HIPAA-compliant medical record processing
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| | Separation of Labor. The collection
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| and legal compliance with federal and
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| | agency taking over the unpaid patient
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| state collections regulations.
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| | balance deals directly with the patient
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| "Skip-tracing." Ability to find
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| | and the practice, excluding billing
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| patients that changed addresses or names
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| | service from remaining collections
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| Access to Special Funding Sources.
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| | process and any associated fees.
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| Experience of working with specialized
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| | Exclusion of Fees. Billing service
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| public and private funds for victims of
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| | should receive no referral or any other
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| accidents and violence
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| | fees from collections agencies servicing
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| Relevant Legal Expertise. Access to
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| | the doctor's office. Upon account
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| specialized legal expertise and ability
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| | transfer away from the billing service,
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| to handle both small and large debt cases
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| | it should receive no fees from the
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| in court
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| | medical practice for collecting the
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| Understanding of Billing Processes
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| | outstanding debt.
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| Knowledge of healthcare claims processes
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| | Yuval Lirov, PhD, author of "Mission
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| and ability to successfully negotiate
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| | Critical Systems Management" (Prentice
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| with insurance companies
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| | Hall) , inventor of multiple patents in
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|
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| | artificial intelligence and computer
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| Proven Performance
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| | security, and CEO of Billing
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| | Technologies. Vericle(R) delivers
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| References. Provide a list of
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| | comprehensive practice workflow engine
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| specialty-relevant references.
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| | that integrates patient scheduling,
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| Quantitative Performance Measurement.
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| | electronic medical records (EMR),
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| Compare collections performance including
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| | billing, transcription, and compliance
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| percent collected and time to account
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| | management. By consolidating technology
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| liquidation.
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| | for hundreds of separate billing
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| Client satisfaction. Demonstrate
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| | services, Vericle(R) tracks payer
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| long client retention history.
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| | performance from a single point of
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| Centralized Control
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| | control, shares compliance rules
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|
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| | globally, and creates massive economies
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| Transparency. Provide real time
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| | of scale.
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