Six Tips On Selecting A Medical Collection Agency-hamimelon

Finance The amount of days money is due to you remaining in accounts receivable (AR) provides a solid indication of how long it’s taking you to collect money owed to your practice. The Medical Group Management Association’s family practice accounts receivable benchmark breaks down like this: 0-30 days: 68% 31-60 days: 14% 61-90 days: 7% 91-120 days: 3% 121 + days: 8% The more money collected sooner, the better. However, what do you do if that is not occurring? If you’re reluctant to pursue the funds yourself and choose not to have staff do it, you may want to contact a medical collection firm. What are some things to look for? * Find out if the company belongs to industry associations like the Commercial Law League of America or the Commercial Agency Collection Association. This suggests they understand the ethics of collection laws like the Fair Debt Collections Act. * Inquire about the commissions. The range can be anywhere from 15% to 50% of the total amounts collected. It depends on the account type and the level of collecting difficulty. * Make sure the firm understands the sensitivity of collecting medical bills. A balance must be maintained between collecting what you’re legitimately owed and your medical practice. The collection process needs to be gentle, firm and persistent and always moving forward. * Learn the collection process. The usual collection agency timeframe occurs at the 90 day mark. If a bill has not been remitted nor the patient heard from in 90 days, the collection firm’s work begins. It begins with a staff collector making: – Immediate letters to the debtor – Daily calls within a two to three week period If no resolution appears to be forthcoming, then an attorney may take over. The attorney will pursue the case the same way. However, the letters will now be on the attorney’s letterhead and the calls will be from an attorney. If nothing happens, then you’ll make a litigation decision. If you go forward, you’ll pay the $600 to $800 court costs and a lawsuit will be filed. If not, then the amount will be written off. Either way, it’s resolved. * Make sure you have realistic expectations. Find out the collection recovery percentage the firm achieves. Some studies suggest that a medical collection company will collect between 15% and 25% of the money they pursue. The average appears to be about 20% (The firm will collect $5000 from every $25,000 turned over). * Consider bundling your billing and collections. If you find a reliable firm who can do all of your billing and collections, it may be financially worthwhile to review the costs and benefits of that situation instead of outsourcing the just past due accounts. About the Author: 相关的主题文章: