It could be time to think about hiring a healthcare collection agency if your internal collection method has failed and the debt is still outstanding. Choosing the best third party debt collection organization can be challenging, though.
You need a business that will politely and effectively represent your hospital or healthcare center. Additionally, you should seek a business that can provide its services in a way that adheres to your hospital’s EMR and operating guidelines while attaining a respectable recovery rate and maintaining your reputation with patients. Although pricing should not be the only consideration when choosing an agency, it is an essential one. Considering other criteria is advised because, in general, you get what you pay for.
To protect your patients and your financial security, you should keep a few important factors in mind when choosing a healthcare debt collection service.
1. Services Across The Healthcare Revenue Cycle:
Only in extreme cases should healthcare debt collection go to the revenue cycle stage. Implementing efficient early-out and insurance denials management solutions should also be a major goal for protecting all potential payment sources (when it becomes more difficult to collect) before the account ages into terrible debt status.
Consider working with third-party debt collection partners who can offer you services other than primary and secondary bad debt collections, like:
- ● Pre-Registration Call Campaigns
- ● Early Out Self-Pay AR Management
- ● Presumptive Charity Scoring and Assistance
- ● Medicaid Billing & Enrollment
- ● Customized Call Campaigns
- ● Insurance Denial Management and Follow Up
2. Industry Experience:
Make sure the healthcare revenue cycle management you choose possesses the skills and knowledge necessary to properly collect patient debts. Medical debt is generally not a debt of choice in comparison to every other type of commercial debt. As a result, these accounts should be approached very differently than you may see in an agency for a collection that is more business-oriented.
The healthcare and debt-collecting industries are also subject to stringent regulation and inspection. You need a partner who has both knowledge and obedience. A business partner who has established a tried-and-true set of guidelines and practices that are periodically evaluated and modified to suit the continuously changing healthcare industry.
3. Recovery Rate
Without a doubt, the recovery rate is important. When you ask the agency what the estimated recovery rate is, pay close attention to their response. If the salesperson gives you a % without first asking you a series of questions, you might want to consider working with a different agency. Recovery rates will differ significantly depending on a range of variables, including your patients’ demographics, age at placement, and prior collection efforts, among others. Each organization is unique. The services offered and the resulting recovery rate should be customized to meet the particular requirements of each engagement.
Additionally, keep an ear out for important clues concerning healing techniques. Any healthcare debt collection service should require its collectors to sign the ACA Pledge and promise to treat clients with respect and dignity as partners in settling debts.
4. Procedures And Policies
Working with your healthcare debt collection agency must be comfortable for you. Considering that they are an extension of your business, don’t forget to ask them the following questions:
- ● What are the collection practices the debt collection agency employs from the beginning with your accounts?
- ● When does communication by letters, phone calls, or other means begin during the course of working on an account?
- ● What are the collection letters saying?
- ● How is their personnel educated? Do all collectors have access to HIPAA, data security, and regulatory compliance training?
- ● For third-party debt collection companies, the Fair Debt Collection Practises Act (FDCPA), CFPB regulations, and other consumer protection legislation are essential. How can they be sure they are following these laws when they work?
- ● How are patient financial and medical information safeguarded?
- ● How can business intelligence and data analytics be used to assist you in solving revenue cycle issues before they arise?
- ● Are speech analytics employed to make sure that every patient is treated in compliance according to your organization’s policies?
5. References
How do customers feel about working with the company? Try to contact at least two hospitals or healthcare facilities that currently use the agency’s services. Determine the arrangement’s success and the degree to which patients and clients are satisfied with the services received.
6. Professional Credentials And Audits
Does the company adhere to all state licensing and bonding requirements? If your state does not demand licensing or bonding, find out how long the organization has been in business. Experience is often a trustworthy indicator of quality.
For instance, the organization might be a member of the Organisation of Credit and Collection Professionals. Members of ACA agree to follow the moral standards and guidelines established by the organization as well as any laws, regulations, and ordinances of the federal, state, and local governments. Are there any other organizations outside the HFMA, MGMA, or AAHAM?
What categories of external audits does the company hold certification in? PCI? HIPAA HITRUST? SOC II? Audited financial statements, what are they? Third-party audits provide verified proof that an agency has rules, safeguards, and checks & balances in place. The fastest way to end a firm is through a data breach.
7. Appropriate Insurance Coverage
A strong cyber liability policy is essential today. Recent high-profile data breaches have had unfavorable effects, which serve as a clear reminder of how important it is to handle consumer data securely if you want to maintain your customer base’s trust and loyalty. Know the insurance requirements as well, according to the size of the agency and your business. One size does not fit all when it comes to insurance coverage.
For instance, the size of the agency and the amount of data kept in its system exclusively define the limitations of Cyber Liability insurance coverage. Many creditors feel they must obtain a certain level of insurance in order to “check the box” during the purchasing process, but they are confused if the amount they are requesting is the right one for the agency. Similar to how cyber insurance functions very differently from mistakes and omissions coverage. Don’t just tick the box; become knowledgeable about the distinctions.
You should be able to find an experienced and reputable healthcare debt collection agency by following these seven tips.
Final words
Few people enjoy collecting past-due patient balances, and it frequently ends up on the dreaded “to-do” list. However, it is essential that you take action to collect these payments given the ever-diminishing operating margins in private practices and rising patient liable amounts each year. Taking patient payments in advance at the time of service is the simplest and most economical way to achieve this.
As you can see, picking a healthcare debt collection agency requires careful consideration. Take on that to-do list right away since the average patient liability is growing every year, and the law of diminishing returns is destroying that debt every day.
