Debt Recovery

Commercial debt collection in a B2B (business-to-business) context involves the process of collecting overdue payments from one business by another business. This is typically initiated when a business has provided goods or services to another business, but has not been paid according to the terms of their agreement. Unlike B2C debt, each B2B debt is handled based on the case history and complexity of the case.

Collection Priorities High Recovery Rates Professionalism and Compliance A Persistent and Diplomatic Approach Transparency and Communication Customized Solutions Technology and Efficiency Cost-Effectiveness Data Security Customer Retention Focus & Maintain Relationship Providing Exceptional Customer Service Need a Collection Agency: Contact us

B2C collections involve the process of collecting debts from individual consumers (B2C stands for business-to-consumer). This usually occurs when a business tries to recover money owed by customers for goods or services rendered. This process is highly regulated to protect consumer rights. Not many collection agencies offer B2C collections due to lower margin and too many government restrictions.

Process of debt collection:

1. In-House Collection Efforts: Initially, the creditor business usually tries to collect the debt through its own internal efforts. This may include sending reminders, statements, and making phone calls to the debtor business to request payment.
2. Formal Demand Letter: If initial attempts do not result in payment, a more formal demand letter can be sent. This letter typically outlines the amount owed, the original terms of payment, and may give a final deadline by which the debtor must pay to avoid further action.
3. Negotiation and Payment Plans: Sometimes, the debtor business may be facing cash flow issues. In such cases, the creditor might be willing to negotiate payment terms or agree to a payment plan.
4. Engaging a Collection Agency: If internal efforts to collect the debt fail, the creditor business may engage a commercial collection agency. These agencies specialize in debt collection and will undertake efforts to collect the debt on behalf of the creditor, often for a fee or a percentage of the amount collected.
5. Legal Action: As a last resort, if the collection agency is unable to recover the debt, the creditor may choose to take legal action against the debtor. This is typically an expensive and time-consuming process, so it’s usually reserved for significant debts where the potential recovery justifies the costs.
6. Reporting to Credit Bureaus: The creditor or the collection agency may report the unpaid debt to business credit bureaus. This can affect the debtor’s business credit rating and make it more difficult for them to obtain financing in the future.
7. Asset Seizure and Liens: If a court judgment is obtained in favor of the creditor, the court may allow for the seizure of the debtor’s assets or place a lien on property to satisfy the debt.
8. International Collections: If the debtor business is based in a different country, international debt collection procedures may apply. These collections can be more complex due to differences in laws and regulations across countries.
9. Ethical and Legal Compliance: It is crucial that the creditor and any collection agency they engage comply with the laws and regulations governing debt collection, such as the Fair Debt Collection Practices Act (FDCPA) in the United States. While the FDCPA primarily applies to consumer collections, ethical practices should be maintained in B2B collections as well.
10. Documentation and Records: Keeping detailed records of all communications and actions taken in the debt collection process is critical. This documentation may be needed if the case goes to court.

Collecting a debt can be a delicate process especially for big businesses, and it’s important for businesses to handle it lot more professionally. The approach taken should balance the importance of maintaining a good business relationship with the need to recover the funds owed.

While LTC facilities aim to provide housing and care for the elderly, they are also businesses that need to stay aware of their bottom line to continue to provide these services.

Some patients might not have sufficient insurance coverage or financial resources to pay for their care, resulting in bad debts for the facility. Slow reimbursement from insurance companies, Medicaid, or Medicare can create cash flow problems. Private payers might also delay payments. Some patients may have copayments, deductibles, or services not covered by insurance. Collecting these amounts from patients or their families can be challenging.

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Unique aspects of nursing homes and LTC facilities can make getting paid more complex than your average business. This is why these institutions should consider working with a debt collection agency that understands the specific issues faced by these businesses.

Over the next two decades, many Americans will need nursing homes and long-term care (LTC) facilities. As the baby boomer generation goes from retirees to the elderly, these types of institutions will see a massive boom in demand. In fact, by 2040, there will be 4.3 million elderly citizens utilizing nursing home facilities.

It’s Not Always About Collecting Money 

When a debt collection agency works with a standard business, it aims to contact the person who owes the debt and collect money from them or the guarantor/co-signer. For nursing homes and LTC facilities, the biggest challenge they face in collecting their accounts receivables is getting the information they need from family members or other caregivers.

Debt collection companies who specialize in working with nursing homes and LTC facilities know that collecting information is a vital part of collecting for this population and have proven methods and systems to contact family members who may not want to talk and share info. These debt collectors can do this in an ethical way that is sensitive to the situation while still compelling the responsible parties to give the information needed to get Medicaid approved faster.

It’s Not Just Collecting from the Person

When nursing homes and LTC facilities look to get paid for caring for an elderly person, it is not just that person who they can collect from. There is a larger system in place to help subsidize this type of care. A specialized debt collection company will help these institutions collect from multiple sources to get the AR paid.

These sources that a debt collection agency will help your organization tap into include the standard past due private pay balances, SSI balances, Medicare co-insurance, and more. If your institution goes it alone or works with a debt collection company unfamiliar with all the payment avenues, your facility could lose out.

That said, the right debt collection agency also knows that Medicare usually only covers a portion of LTC, and the remaining amount is covered by the elderly or his guarantor. A debt collection agency also has the tools to help collect from these parties.

It’s Not Just About the Debt Going Forward

One more reason that it makes a lot of sense for nursing homes and LTC facilities to work with an experienced, knowledgeable debt collector in their industry is because of Retroactive Medicaid. Retroactive Medicaid is a system that allows Medicaid applicants to receive nursing home coverage for up to 3 months before the date of the patient’s application. For nursing homes and LTC facilities, waiting too long to collect on a person’s AR can lead to losing out on the ability to manage the retro.

The right debt collection company knows how these timelines work and will be able to help your institution get what it needs to get Medicaid billing approved faster so you do not lose the retro. This is critical to keeping your business healthy while caring for the elderly.

Conclusion

The job of nursing homes and LTC facilities is to provide the best housing and care they can. Spending a lot of time chasing past due accounts is incredibly important, but it also takes away from the core mission. Hiring a debt collection agency that works with these institutions is the best way to improve your bottom line.

Most pool cleaning and maintenance companies have several clients that do not fulfill their promise to pay for the services used.

Unpaid bills can hurt any small business, especially where profit margins are lean, business is seasonal and the competition is fierce. If your business has past-due accounts, the cost of those can go way beyond just the outstanding amount. Here is a look at the real cost of past due accounts and what pool companies can do about it.

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The Real Cost of Past Due Accounts

The most obvious cost of having a client that has not paid their bill is the amount on the invoice. You and your company have provided a service and used man-hours and materials to do so. Not being paid for all of this can seriously affect a company’s bottom line.

In addition to the bill, the collection process itself has costs associated with it. Whether it is you personally, the person who manages the account, or an office manager who has to follow up to try and collect, that all takes time. The time that could be spent on the person’s core job which ultimately helps run and grow the business. They say time is money and time spent trying to collect on an unpaid bill loses more money for your company.

If a bill goes unpaid for weeks and months, you face a few, unattractive options. You can write the loss off, but that requires even more time and maybe even paying an expert to figure out if it makes financial sense. The other option is court. There are fees associated with that as well and once you put the case in the legal system, you open yourself up to things like countersuits which could cost even more in the long run.

So, to help contain the costs of past due accounts and keep your pool company on solid financial footing, what can you do?

How to Collect on Past Due Accounts

Debt collection for spa and pool companies requires a systematic approach, this includes assigning overdue bills to a collection agency and putting systems in place so that most bills never get that far.

Working with the right debt collection agency is important. You need to find an agency that understands both your business and theirs. The right agency will not only help you collect more outstanding debt in a timely manner but also do it in a way that is in compliance with all debt collection laws and does not alienate your clients.

An overly aggressive debt collection agency can hurt your company in multiple ways. First, companies that do not adhere to the Consumer Credit Protection Act and the Fair Debt Collection Practices Act can get your company in legal trouble that will cost even more money. Also, just because a client has a past due bill, does not mean you want to burn that bridge. That customer could turn it around and go back to be a valued customer in time. Even if not, you do not want to expose yourself to the damage by a negative word of mouth or online reviews could do to your business. That is why you want to make sure you work with an ethical debt collection agency that has your company’s best interests in mind.

Putting Systems in Place

Instead of wasting time and money chasing past due clients, there are a few other things you can do in addition to handing over past due accounts to a debt collection agency. Requiring that customers pre-pay for service may work in some cases, especially if it is a recurring service. Also, requiring a credit card on file that will only be charged if the payment isn’t received by a certain date can help as well. Finally, setting a well-defined line where you stop a client’s service or stop doing business with them entirely will help you create the most reliable client list you can.

Conclusion 

Small business owners cannot afford to not be paid for their services. That is why swimming pool cleaning and repair companies need to put systems in place to be in the best position to be paid-in-full and on-time. When this doesn’t happen, turning the accounts over to an ethical debt collection agency is the best way to make sure you are paid what you are owed without damaging your company’s reputation.

Maximizing Revenue Recovery: Why Urgent Care Clinics Should Partner with Specialized Collection Agencies Only

The rise of urgent care clinics over the past decade has transformed the healthcare landscape, offering patients more accessible and affordable medical care options. With over 9,000 urgent care centers operating in the United States as of 2023, these clinics have become a go-to choice for patients seeking prompt attention without the long wait times and high costs associated with emergency rooms. According to the Urgent Care Association (UCA), the average cost of an urgent care visit is around $150, compared to an average of $1,389 for an emergency room visit.

However, while urgent care clinics provide essential services, they are increasingly facing a significant challenge: unpaid patient bills. A staggering 32% of American workers have medical debt, and more than half of these debts are in default. This financial strain not only affects patients but also poses a serious threat to the financial health of urgent care clinics.

So, how can urgent care clinics recover unpaid bills without damaging patient relationships or their reputation? The answer lies in partnering with a specialized collection agency that understands the unique needs and challenges of the urgent care industry.

A Highly Rated Agency – Serving Doctors Nationwide Need an Urgent Care Collection Agency? Contact Us

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What Urgent Care Clinics Should Look for in a Collection Agency

1. Healthcare Industry Expertise
2. Strict Regulatory Compliance, including HIPAA.
3. Proven Reputation and High Success Rates
4. Patient-Centric and Respectful Communication
5. Advanced Technology and Secure Data Handling
6. Transparent Reporting and Open Communication
7. Adequate Insurance and Licensing
8. A High Google Rating.

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The Urgent Need for Professional Debt Recovery

When patient accounts become 60 to 120 days past due, the likelihood of recovering those debts decreases dramatically. According to the Association of Credit and Collection Professionals (ACA International), the probability of collecting a debt drops by 15% with each passing month. Delayed action can lead to significant revenue losses that could otherwise support clinic operations and growth.

Why Partner with a Collection Agency?

• Enhanced Recovery Rates: Professional agencies have the expertise and resources to recover debts more efficiently, increasing the chances of full payment.
• Compliance Assurance: Specialized agencies are well-versed in laws like the Fair Debt Collection Practices Act (FDCPA) and the Health Insurance Portability and Accountability Act (HIPAA), ensuring all collection activities are legal and ethical.
• Preservation of Patient Relationships: Trained professionals use respectful communication strategies that maintain patient dignity and loyalty.

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Key Considerations When Hiring a Collection Agency

To maximize the benefits of partnering with a collection agency, urgent care clinics should carefully evaluate potential partners. Below are the most important factors to consider:

1. Industry Expertise

• Specialization in Healthcare Collections: Choose an agency with a proven track record in medical debt recovery, specifically within urgent care settings.
• Knowledge of Relevant Laws: The agency should have a deep understanding of healthcare regulations, including HIPAA, FDCPA, and the Consumer Credit Protection Act (CCPA).

2. Regulatory Compliance

• Adherence to Federal and State Laws: Ensure the agency complies with all legal requirements to avoid lawsuits and penalties.
• Certifications and Accreditations: Agencies accredited by organizations like ACA International demonstrate a commitment to ethical practices.

3. Reputation and Success Rate

• Client Testimonials: Seek feedback from other urgent care clinics that have worked with the agency.
• Recovery Performance Metrics: Inquire about their average recovery rates and how they measure success.

4. Patient-Centric Approach

• Respectful Engagement: The agency should prioritize compassionate communication to maintain patient goodwill.
• Complaint Resolution Process: A transparent system for handling disputes protects both the clinic and patient interests.

5. Advanced Technology

• Modern Collection Systems: Utilize agencies that employ up-to-date software for tracking, reporting, and communication.
• Data Security Measures: Ensure they have robust systems to protect sensitive patient information.

6. Transparency and Reporting

• Regular Updates: The agency should provide consistent reports on collection activities and outcomes.
• Accessible Communication Channels: Open lines of communication facilitate collaboration and quick issue resolution.

7. Insurance and Liability

• Proper Insurance Coverage: Agencies should carry Errors and Omissions Insurance to protect your clinic from potential liabilities.
• Bonded and Licensed: Verify that the agency is properly bonded and licensed to operate in your state.

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Benefits of Using a Specialized Urgent Care Collection Agency

Improved Data Accuracy

Agencies have access to advanced tools for verifying and updating patient information, such as:

• Skip Tracing Services: Locate patients who have moved or changed contact information.
• Bankruptcy and Deceased Records Checks: Prevents pursuing collections from patients who are bankrupt or deceased, avoiding legal complications.

Effective Patient Communication

Professional collectors are trained in:

• Negotiation Techniques: Encouraging patients to settle debts amicably.
• Compliance Communication: Ensuring all interactions meet legal standards, reducing the risk of complaints.

Comprehensive Collection Strategies

• Phased Approach: Utilizing letters, calls, and legal actions as necessary to maximize recovery.
• Customizable Plans: Tailoring strategies to align with your clinic’s policies and patient demographics.

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Conclusion

Unpaid medical bills are a pressing issue that can significantly impact the financial stability of urgent care clinics. By partnering with a specialized collection agency, clinics can:

• Boost Recovery Rates: Professional agencies recover debts more effectively, improving your bottom line.
• Maintain Patient Loyalty: Ethical collection practices preserve valuable patient relationships.
• Ensure Compliance: Adherence to legal standards protects your clinic from potential lawsuits and fines.
• Focus on Core Services: Allow your staff to concentrate on providing exceptional patient care.

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Contact a specialized urgent care collection agency today to learn how they can tailor their services to meet your clinic’s unique needs and help you achieve your financial goals.

The healthcare industry is unlike any other. In other businesses, you provide a product or service and the customer puts cash in your hand (more or less). However, the healthcare industry is very different. With multiple providers, claims to manage and reimbursements to deal with, getting money in the door in a timely manner can be difficult. Where healthcare businesses do not differ from other industries is that it is just important to manage revenue and cash flow as it is anywhere else. To help your healthcare business deal with this complicated receivables issues, here are a few ways to improve healthcare revenue cycle management.

Track and Analyze the Revenue Cycle

Maybe this is something you are already doing. If you are, there are always ways to get better at understanding your revenue cycle. If you are not, it is the number one way to improve revenue cycle management and you should start now. The simplest way to explain why this is so important is with an old business cliché that goes, “you can’t manage what you don’t measure”.

The first thing an organization must do is to set strategic goals and benchmarks. After you know what your ideal financial situation should and could be, you then need to take all the data, from patients and payers and start to see how you are doing in each category. The good news is, there is a lot of data in the healthcare industry to collect and learn from. There are also a host of software programs you can implement to easily help you pull together the data and draw conclusions from it.

Examine Denials and Claims Scrubs 

One of the biggest challenges for healthcare providers is not getting paid, or only getting partially reimbursed from insurance companies. To improve your revenue cycle management, you need to understand why this is happening and take steps to improve your payment rates. To do this, you really need to stay on top of the claims that are not fully paid and either go back to the payer to get what they really owe you or do better with your own processes and procedures in the future.

The most common reasons for claim denials are:

• patient ineligibility
• incomplete patient or plan information
• missing supplemental attachments
• incomplete service information
• duplicate claims
• claims submitted to the wrong payer
• coding error

What do you notice on this list? How about the fact that most of these are avoidable oversites on the provider’s end. When you start to see patterns emerge as to why you are getting claims denied, you can start implementing better practices with both your front-end and back-end staff.

Examine Your Contracts with Payers

The other common reason your healthcare organization is not seeing the reimbursements from claims it should is that the payer is not paying in line with what your contract states. This is a very common problem. Some of the discrepancies might only be a few dollars. It is probably not worth it to do a time-consuming contract review for every small item payment but the problem is, those small numbers add up over time and can cost your business a lot in the long run.

The best solution is to do a contract review for big-ticket reimbursements to make sure you get paid in full on large bills. If you find a certain company is not sticking to the contract with large items, it is worth reviewing smaller items as well on that specific contract. On all others, just make sure you are reviewing somewhat regularly (Annually? Biannually? Quarterly?) to make sure everything is being paid to spec.

Implement Stricter Front-End Process

Healthcare revenue cycle management is not just a function of the back-end of your organization. The front-end has very important responsibilities as well. The more you streamline and improve their processes, the less pressure you put on your back-end to carry the revenue cycle load.

Studies show that more than half of medical bills under $500 are not fully paid. This is particularly prevalent among younger adult patients. By optimizing your point-of-service payments, you can start the revenue cycle on a better foot. By putting in place a strict point-of-service or pre-service payment plan, you can ensure you get the revenue cycle started correctly.

One great way to help do this is to offer pre-service cost estimates so patients know that they are getting into. Data suggests that almost half of Millennial patients say they would be more likely to pay upfront if they received an estimate in advance. Another way is to offer card on file payments. While credit and debit cards are by far the most popular form of payment, many practices do not keep these cards on file for easy payment.

Debt 90 days past due? Hire Recovery Agents !

Hiring a debt collection agency is one of the best things you can do to minimize your losses due to ballooning accounts receivables. Unpaid bills can cause serious cash flow issues for the healthcare industry since they are unable to reduce their operating expenses as quickly as other industries. We can help you if you want to hire a good collection agency.

Conclusion 

In addition to delivering the best patient care possible and striving to provide the best patient outcomes you can, healthcare businesses still need to keep a close eye on their bottom line. The healthcare revenue cycle is unlike any other and, as such, needs to be constantly monitored and tweaked to make sure it is running efficiently for your business. By collecting and analyzing data and improving processes in your organization’s back-end and front-end, you should be able to create a noticeable improvement in managing your revenue cycle. The most important reason to do this is that the less you and your business have to worry about revenue, the more you can focus on providing the best care possible.

Collecting a debt can be a complicated process. Whether someone owes you money under a contract or you’ve obtained a court money judgment against someone, several tested tactics can get you paid. When it comes to collections, success requires an organized, well-managed, and thorough process. There are no secret tricks or little-known tips, although some ingenuity in obtaining information is helpful. Ultimately, collection success follows diligence and focus.

Here are ten of the most effective collections tactics and how to apply each to increase your collections cash flow:

1. Use all the information you already have on your debtor

If the debt is from a contract or a loan, you probably have an application or some other preliminary documentation on your debtor. Loan applications ask for extensive contact and employment information, and while some of that information is part of an approval process, it’s also used for collections. Start with the debtor’s address and employment information listed on the application or other documentation.

2. Search online and on social media

Chances are, your debtor has some digital footprint, and online information can be a source of contact information and other insight into the debtor’s affairs. Check social media accounts for the debtor, and then look for employment clues, or details on where the individual lives, works, and who they associate with.

3. Check those credit references

If you asked for credit references as part of a loan or rental application, this is the time to reach out to the listed people. In general, you can only ask these references for information about the debtor’s location and cannot discuss the debt details. Contacting references serves two purposes: it alerts the debtor (since the reference may contact them) and can be the source of new information on the debtor.

4. Contact, contact, contact

Once you have basic contact information from your documentation, online sources, or references, begin a scheduled and persistent process of contacting the debtor. Begin with a phone call and a letter. Use certified mail with the first mailing attempt, as this can confirm a debtor’s address and can be evidence that you alerted the debtor of the amount owed. Be persistent and firm, but tell the debtor you want to work with them to resolve the matter.

5. Uncover banking information

If you are collecting on a money judgment, you may be able to enforce the judgment using bank account garnishments, but the key to this tactic is knowing where your debtor keeps their money. You may have this information already from any payments the debtor may have previously made. Also, if you paid the debtor via a check, see which bank processed the payment. Go back and check social accounts, too. Your debtor may follow the social media feed of their financial institution.

6. Find out if the debtor owns a vehicle

Many state motor vehicle departments allow third parties to request information on vehicles registered to an individual. Like bank accounts, a car or other vehicle can potentially provide a source for payment.

7. Ask the debtor, and others, to provide information

If you have a judgment, you can invoke your standing as a judgment creditor to compel disclosure of information on the debtor. An information subpoena is a simple list of questions such as:

• Where do you bank?
• Do you have any cash on hand?
• Where do you work?

An information subpoena can also be sent to third parties, such as banks and certain individuals, to find answers to the same questions.

8. Offer a payment plan

It’s possible — likely, even — that a debtor hasn’t paid you because they cannot. Offering a payment plan may be a tactic to get some cash flowing and create a more friendly relationship that can result in more payments. A payment plan can also take the form of a Confession of Judgment, which can speed up the process of converting the collection account to a judgment if necessary.

9. Be open to settlement

When it comes to collecting a debt, getting some amount is preferable to getting nothing. Use the information that you have collected to assess whether or not the debtor has assets or means to pay the debt. Extend a discounted offer to accept a smaller sum in full, and reduce the amount of your losses.

10. Document Everything

Keep records of all communications and agreements made with the debtor. This includes phone calls, emails, and written correspondence.

11. Hire professionals

Professional debt collectors know how to orchestrate all that’s required for a successful collection. They often take a percentage of what they collect, so there’s little or no out-of-pocket expense. They know all these tactics and more and can help manage the process and guide you to more money. Debt collectors recover money from unpaid invoices all day long. That’s their job, their debt recovery tactics cannot be matched by regular folks. As a last resort, reporting the debt to credit bureaus can sometimes incentivize payment, as it affects the debtor’s credit rating. Make sure that you are compliant with laws and regulations when doing this.