Debt Recovery

Telehealth and virtual care have dramatically reshaped healthcare delivery, providing accessible, efficient, and patient-friendly alternatives to traditional in-person visits. Yet, telemedicine brings unique billing and debt collection challenges, requiring tailored strategies distinct from conventional medical billing.

Telehealth providers should partner with a collection agency that is HIPAA-compliant, highly rated, licensed in all 50 states, and experienced in medical collections. Just as importantly, the agency must prioritize data security and protect your reputation through respectful, patient-friendly practices.

Why Telehealth Debt Collections are Different

Telehealth collections differ significantly from traditional medical billing due to:

• Geographic complexity: Telehealth providers often treat patients across state lines, introducing varied billing regulations and compliance requirements.
• Technology-driven workflows: Virtual care relies heavily on digital payments and patient portals, necessitating robust online billing systems.
• Insurance variability: Telehealth insurance coverage can differ greatly depending on the patient’s policy, state, and the nature of virtual visits, often resulting in unexpected denials.

Unique Challenges in Telehealth Debt Collection

1. Compliance Across Jurisdictions: Telehealth providers must comply with differing state laws, licensing requirements, and telehealth-specific billing regulations. Failure can lead to denied claims and collection complexities.
   

   Example: A virtual mental health provider treating patients in multiple states must adhere to each state’s telehealth reimbursement rules to avoid insurance rejections.

2. Patient Confusion Regarding Coverage: Patients often misunderstand the scope of their telehealth coverage, resulting in higher rates of non-payment or delayed payments.
   

   Example: Patients might assume all virtual visits are fully covered, only discovering afterward that certain visits, such as teletherapy sessions, have limited coverage.

3. Integration with Digital Payment Platforms: Effective collections require seamless integration with user-friendly online payment systems. Telehealth providers who lack intuitive payment portals see higher delinquency rates.
   

   Example: Practices using platforms like Healow or MyChart for seamless bill payments see increased promptness and satisfaction compared to those using disconnected systems.

Effective Debt Collection Strategies for Telehealth

• Clear Communication of Coverage: Ensure patients clearly understand their financial obligations before appointments, reducing disputes and confusion.
• Omnichannel Billing Solutions: Provide multiple digital payment options, such as mobile payments, online portals, or SMS-based systems, enhancing convenience.
• Real-Time Eligibility Verification: Adopt technology that checks insurance eligibility instantly, reducing claim denials and associated collections.
• Compassionate Virtual Collection Practices: Telehealth is rooted in convenience and care—collection practices should reflect this ethos, employing empathy-driven scripts and digital reminders.

Selecting the Right Collection Agency for Telehealth

When outsourcing collections, telehealth providers must look specifically for agencies that:

• Have Multi-State Compliance Expertise: Ensure the agency is adept at managing collections under varying state telehealth regulations and laws.
• Leverage Technology for Efficiency: Agencies should integrate seamlessly with telehealth providers’ existing billing and patient portal systems, providing frictionless payment experiences.
• Offer Clear, Empathetic Communication: Prioritize agencies with a proven record of compassionate collection practices that align with telehealth’s patient-first model.
• Demonstrate Proven Telehealth Experience: Select agencies familiar with telehealth nuances, insurance complexities, and virtual care billing dynamics.

Real-World Success Story

 A national telehealth provider partnered with a tech-forward collection agency, integrating their patient portal with the agency’s collection software. Within six months, patient satisfaction improved, and collections increased by 25%.

Conclusion

Debt collection for telehealth and virtual care is complex but manageable with strategic approaches that prioritize compliance, technology integration, and patient-focused communication. By thoughtfully selecting partners and investing in efficient digital systems, telehealth providers can significantly improve revenue cycles while enhancing patient satisfaction.

Debt collection has traditionally been viewed as a slow, paper-heavy process. However, the smartphone has revolutionized the industry. Today, if a debtor cannot pay with two taps on their screen, they likely won’t pay at all.

Mobile payment solutions offer both debtors and creditors a seamless, efficient method to manage debt repayment—removing the “friction” that causes most unpaid bills.

Why Mobile Payments Are Changing Debt Collection

In recent years, consumer behavior has shifted entirely to mobile. Speed is the new currency. For debt collection specifically, mobile platforms significantly enhance repayment rates by meeting the debtor where they are: on their phone. Traditional methods—like mailing a check or reading a 16-digit credit card number over the phone—create barriers. Mobile payments remove them.

Benefits of Mobile Payments in Debt Collection

1. Increased Convenience (The “Frictionless” Experience)

Mobile payments eliminate the need for physical checks, stamps, or even logging into a desktop computer. Debtors can settle debts instantly via a secure link sent to their phone.

• Stat: Payment portals optimized for mobile see a 30% higher conversion rate than desktop-only sites.

2. Faster Collection Rates

Immediate payment options shorten the collection cycle. Instead of waiting 5–7 days for a check to arrive, funds are verified and deposited instantly. This dramatically improves cash flow for businesses.

3. Enhanced Security & Compliance

Modern mobile payments use tokenization and biometrics (Face ID/Touch ID). This is far more secure than writing credit card numbers on paper forms.

• Note: Professional mobile gateways are PCI-DSS compliant, protecting you from data breach liability.

4. Reduced Operational Costs

Digital payments lower administrative overhead. There is no envelope to stuff, no postage to buy, and less staff time spent on manual data entry.

Real-World Mobile Solutions (And What to Avoid)

1. Text-to-Pay (SMS Links)

This is the gold standard for 2025. The agency sends a secure, encrypted link via SMS. The debtor clicks, verifies their identity (DOB or Zip), and pays.

• Why it works: Open rates for SMS are 98%, compared to just 20% for email.

2. Digital Wallets (Apple Pay & Google Pay)

Integrating Apple Pay and Google Pay is crucial. It allows debtors to pay using the card already stored in their phone.

• The Benefit: It eliminates the excuse “I don’t have my wallet on me right now.”

3. A Warning on Consumer Apps (Venmo/Zelle)

• Caution: While apps like Venmo and Zelle are popular for friends, businesses should be very careful.

• The Risk: Using personal Venmo accounts for business debt collection can violate Terms of Service and lead to account bans.

• The Compliance Trap: Publicly visible transactions on Venmo can violate HIPAA (for medical debt) and FDCPA privacy laws. Always use a professional merchant processor, not a peer-to-peer app.

Overcoming Resistance & Ensuring Compliance

The Challenge: TCPA Laws

The biggest hurdle to mobile collections is not technology—it is the law. The Telephone Consumer Protection Act (TCPA) restricts how businesses can text consumers.

• The Solution: Professional agencies use “Safe Harbor” software that manages consent. We never text a debtor without verifying the number and ensuring we have the right to contact them.

The Challenge: Security Concerns

Debtors are wary of clicking links.

• The Solution: Build trust by using branded URLs (e.g., pay.yourbusiness.com) rather than generic link shorteners, and always require a verification step (like entering a Zip Code) before displaying the balance.

The Future of Mobile Payments in Debt Collection

As digital transformation accelerates, “paper billing” will become obsolete. Innovations such as AI-driven payment reminders (which send texts at the exact time a person is most likely to look at their phone) and QR Codes on letters are already becoming standard.

Conclusion

Debt collection agencies that proactively adopt Text-to-Pay and Mobile Wallets will not only improve their recovery rates but also significantly enhance debtor satisfaction. In the modern economy, the easier you make it to pay, the faster you get your money.

We have been made aware of a growing concern that collection agencies are increasingly not reporting debts to credit bureaus. Believe us when we say that creditors across various industries are voicing their complaints. Obviously, this has a negative impact on the recovery rate.

If collection agencies had the ability to report every legitimate debt, they certainly would when all other collection efforts fail. However, the reality is that Credit Reporting Agencies (CRAs) — TransUnion, Experian, and Equifax — do not permit it in all cases.

Here is an excerpt from the credit reporting manual of one of the major CRAs:

We does not accept the following types of data from our furnishers, either directly or as collection accounts that have been assigned to third parties.  Fines and Fees – Examples include but are not limited to: –  Towing Charges – Vehicle Storage Fees – Parking and Traffic Tickets/Fines – Toll Road Fines/Fees – Ordinance Violations – Library Fines – Video Rental Fees – Prequalification Fees – Brokerage Fees – Eviction Fees Continuity Clubs – Examples include but are not limited to: – Health Club Dues – Karate Club/Martial Arts Dues – Magazine Subscriptions – DVD/Book Club Fees  Pre-Paid Debit/Gift Cards  Checking/Savings Account Activity/Balances  Home Owners’ Association (HOA) Dues Child Support Enforcement Data from Non-Government Entities Tribal loans not compliant with federal and state lending laws  Unpaid Taxes* Unacceptable Data by Industry Type – Bail Bonds Companies – Check Cashing Companies – Pay Day Loan Companies

The banking industry has been hit with what the CFPB called “Junk fees” and there is a full assault on collection agencies attempting to collect medical debt – not only from the CFPB on the federal side, but from the state side too.

Already a dozen states made it illegal to credit report on medical debts. Even a state like Indiana (a traditional red state) is not only attempting to block credit reporting but also stating that collection agencies would not be able to get judgments if they file suit.  This is problematic.

If the balance merits it ($2K+) and the debtor has a decent credit score, job and maybe some assets like a home, Collection Agencies could file suit.

( Article written on 02/20/2025)

Remote work has grown into a standard business model, prompting companies to issue tools such as laptops, tablets, and other devices for employee use. However, when team members exit the organization, it can become a challenge to retrieve these assets—especially if the individual ignores return requests. To tackle this dilemma, many organizations turn to professional collection agencies, leveraging their legal know-how and specialized resources to expedite the process.

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Common Obstacles in Retrieving Company Property

1. Communication Breakdowns
   After ending their employment, some former staff members dodge messages and requests to return company tools. Repeated follow-ups can quickly turn into a major time sink for internal teams.
2. Complex Legal Terrain
   Enforcing the return of equipment without understanding the finer points of the law can result in accidental violations. Organizations risk legal challenges if they overreach or use aggressive methods.
3. Insufficient Internal Resources
   Many businesses lack the capacity or expertise to handle asset recovery on their own. This could involve tracking down former employees who have relocated or cut off contact.

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How a Professional Collection Agency Can Help

1. Skilled Negotiation and Legal Compliance
   Collection specialists use well-established strategies to locate individuals and communicate effectively, always acting within legal parameters. Their familiarity with state and federal regulations lowers the risk of lawsuits.
2. Protecting Corporate Image
   By delegating asset recovery to an outside firm, businesses avoid the impression of hostility. This approach preserves professional relationships and shields the company from reputational damage.
3. Access to Specialized Tools
   Agencies frequently employ techniques like skip tracing, advanced data analytics, and other intelligence methods to track down uncooperative former staff.
4. Efficient Resolution
   Professional agencies know how to streamline the process—ensuring that either the equipment is returned or the organization receives compensation for its loss in a timely fashion.

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A Glimpse into the Collection Agency Process

Imagine your organization loaned a laptop valued at $1,000 to a remote employee who has since left and refuses to respond. A specialized recovery firm would likely proceed as follows:

1. Initial Outreach
   They begin by sending formal communication to the ex-employee, clearly outlining the requirement to either return the device or cover its cost.
2. Strategic Follow-Ups
   If initial attempts fail, they leverage advanced people-search tools and conduct persistent yet lawful communication to prompt the individual to comply.
3. Resolution and Remittance
   Once the situation is resolved—either the gear is returned or payment is secured—the agency deducts its service fee, and the remainder is transferred back to your company.

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Best Practices for Employers

1. Establish Written Guidelines
   Include clear stipulations in employment contracts detailing how and when company property must be returned. Make sure these clauses are straightforward and understood by all.
2. Document Interactions
   Keep a thorough record of every communication with the former employee about the missing assets. This paper trail can be invaluable should legal proceedings arise.
3. Team Up with Reputable Partners
   If you opt to hire a collection service, investigate its track record and confirm it adheres to all relevant laws and standards for ethical asset recovery.
4. Seek Professional Counsel
   If the situation escalates or if you’re uncertain about legal matters, consult an attorney or legal advisor. Their expertise can steer you away from potential missteps.

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The Big Takeaway

Bringing in a professional collection agency to recover equipment from former staff is a strategic move for many businesses. This approach lets you concentrate on core operations instead of battling to retrieve lost or unreturned assets. By pairing robust internal policies with industry experts, you can maintain high operational standards, safeguard valuable equipment, and show employees—past and present—that your organization values accountability and efficiency.

One of the most effective tools in recovering unpaid medical bills has been credit bureau reporting. Patients fear that outstanding medical debts will tarnish their credit reports, reducing their chances of obtaining loans and potentially affecting employment opportunities. However, this window of opportunity is gradually closing as CFPB and states are gradually enact laws to stop or restrict credit bureau reporting of medical debts, making recovery efforts very challenging.

Act Now: Changing Laws Are Making Healthcare Debt Recovery More Challenging

Its all happening in front of us – Federal and state governments are rapidly eliminating the credit reporting of medical debts or imposing strict restrictions, making healthcare debt recovery increasingly difficult. The window to recover unpaid medical bills is closing fast.

What are you waiting for ? If you have not collected your unpaid medical bills yet – Forward them to a medical collection agency fast! Need a collection agency? Contact us  Time is  running out !

Start the Collections Process Immediately

It’s imperative to initiate the collections process early, before patients begin to view their medical bills as a low priority, believing there will be no repercussions for not paying. Delaying action can result in missed opportunities to recover debts that are rightfully owed.

Credit Reporting Agencies Are Minimizing the Impact of Medical Debts

To make matters worse, credit reporting agencies like Equifax, TransUnion, and Experian, along with credit scoring models such as FICO and VantageScore, have already started to minimize the impact of medical bills on credit scores. This means unpaid medical debts may no longer significantly affect a patient’s creditworthiness, reducing their incentive to pay.

List of Laws Passed and Pending Approval 

Federal regulations like the “No Surprises Act” aim to protect consumers from unexpected medical bills, further complicating the debt recovery process for healthcare providers. Jun, 2024 – CFPB Proposes to Ban Medical Bills from Credit Reports Entirely. ( All across USA) Connecticut – May 9, 2024- Public Act No. 21-129 , Public Act No. 24-6 Connecticut Governor Signs Bill Prohibiting Health Care Providers from Reporting Medical Debt to Credit Reporting Agencies. Colorado – House Bill 21-1198, Colorado law prohibits credit bureaus from reporting medical debt or factoring medical debt into a credit score unless the consumer report is to be used in connection with a credit transaction that involves, or that may reasonably be expected to involve, a principal amount that exceeds the national conforming loan limit value for a one-unit property as determined by the federal housing finance authority. New York – Senate Bill S4907A, SB 8373 , Fair Medical Debt Reporting Act, This law prohibits hospitals, health care professionals, and ambulance services from reporting medical debt to consumer reporting agencies. Nevada – Senate Bill 248 Virginia – Bill, HB 1370 , HB 1265 California – Assembly Bill 1020 (AB 1020) Maryland – Medical Debt Protection Act Washington State – House Bill 1531 (HB 1531) , HB 2119 Minnesota – Minnesota Statutes Section 332.70 Illinois – House Bill 5482 Massachusetts – Senate Bill S.675 Oregon – House Bill 3076 Maine – Legislative Document 110 (LD 110) , SB 908 Texas – House Bill 1448 Florida – Florida reduces statute of limitations for medical debt to three years New Jersey – AB 890 Virginia-  HB 1370 Wisconsin – AB 786 Rhode Island – HB 7103 Vermont – (SB 217) Oklahoma – HB 3576, and HB 4148 Indiana – HB 1128 Equifax, Experian, and TransUnion: Announced removal of paid medical collection debt from credit reports. Extended the time before unpaid medical collection debt appears on credit reports from 6 months to 1 year. Starting in 2023, medical collection debt under $500 is no longer included on credit reports.

Be First in Line Before Patient Finances Deteriorate

Medical collections should be a top priority because patients’ finances can deteriorate very quickly; they might accrue additional bills from other healthcare providers. You want to be first in line to secure payment before funds are depleted elsewhere. We strongly recommend sending accounts to a collection agency after 60 to 90 days of non-payment, even though medical credit reporting can now occur after one year due to stringent new laws.

Choose a Reputable Healthcare Collection Agency

When hiring a healthcare collection agency, you must select one that will not tarnish your reputation during collections. Ensure the agency:

• Follows all federal and state laws
• Is licensed to collect in all 50 states
• Keeps patients’ data safe and is HIPAA compliant
• Offers bilingual services
• Serves hundreds of healthcare clients
• Has a track record of delivering excellent recovery rates

Don’t Wait Until It’s Too Late

The landscape of medical debt recovery is changing rapidly. Act now to protect your revenue and maintain the financial health of your practice. Initiate the collections process promptly to navigate these challenges effectively.