Like any business, medical practices need steady cash flow to be successful. By the time a claim goes to the insurance company and back, the patient might not even remember the services they received. Sometimes patients simply don’t consider paying their doctor as a priority. These issues result in the practice not having the money it needs to pay their staff’s salaries, their overhead charges, or for their supplies.
Most medical practices don’t have the resources to pursue payments persistently. Just taking the time to give patients a “gentle reminder” takes the staff away from other essential duties. When these efforts aren’t successful, it results in a greater loss for your practice. That’s why hiring a collection agency makes sense!
Why You Should Hire a Collection Agency
- Legal Protection – A collection agency takes the brunt of the legal work, protecting your practice from lawsuits and fines
- Flexibility– Some patients do pay after a gentle reminder, while others require a stronger nudge. Using a collection agency allows you to decide how you want to collect a debt.
- Documentation –The process of submitting forms to insurance companies, forwarding bills for balances due to patients, and following up with calls, is often a long complex one. The agency will provide proof and documentation of all debts, communications, and attempts to collect.
- Better Results – People often put bills from the doctor’s office aside, thinking that they’ll take care of them “later.” Once they realize their account has been turned over to a collection agency, they feel more of a sense of urgency to pay.
Is It Time for You to Hire a Collection Agency?
- Low Accounts Receivable
It’s problematic for any business to fail to get paid. If you aren’t receiving the bulk of your accounts receivable or it’s taking a long time, you have a problem. The longer your accounts go without getting paid, the more revenue you are losing.
- New CFO or Billing Manager
This kind of new hire means a large transition in leadership for your business. It’s easier to hire a collection agency to handle unpaid bills when you’re already implementing other changes. It’s a good way to start bringing in more revenue than before without any added effort.
- A Majority of Patients Won’t Pay
Some patients deny they owe money, or they ignore your attempts to collect. Others set up payment plans and then fail to follow through on them. Some patients have a history of financial irresponsibility. Their failure to pay is an old habit that they aren’t going to change. Any time a patient account reaches 60 days, you need to act to get a better response and get paid.
No one should have to go without pay for their time and services.
Contact us to learn more about your options for hiring a collection agency to get better results for your practice.