Debt Recovery

Psychiatrists and their staff regularly struggle to recover payments from patients. People do not always fulfill their promise of making installments on time, forcing the in-house staff of your medical practice to make repeated calls and mailing invoices to these people. Several of these unpaid medical bills appear unrecoverable as time passes by, leaving employees completely frustrated and helpless. This is where a medical collections agency comes for the rescue and attempts to recover past-due bills in an amicable and legally permitted manner.

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Accounts receivable problem has plagued the psychiatric industry for a long time now, and in-house staff often lament on the common issues they have to grapple with – with no clear answer or solution in sight. Below are some of these common issues.

1. Denial of Insurance Claims

One of the most common billing issues is denied insurance claims. Psychiatric facilities are often not cognizant of the fact that an inadequate denial management process can cause the loss of a significant portion of potential profits. While the report of the Medical Group Management Association (MGMA), states that every healthcare firm should have a denial rate of 4%, some psychiatric firms’ rates soar to 10% or more.

2. Lack of accounts receivable management

Improper accounts receivable management in psychiatric practices can lead the firm towards loss that includes bad debts. Psychiatric practices can mitigate this by properly reconciling their bank statements to verify that they have not missed an entry and that all the transactions are accurate. Also the receivables staff must precisely review every claim form before submission to make certain it meets the guidelines and try to keep a follow up of denied claims.

3. Unnecessary Write-offs

Most write-offs are related to denied claims and can eventually affect the balance sheet if they occur regularly. Rather than automatically writing off denials, the accounts receivable staff should take the time to review each claim to ensure that all payment options have been exhausted. Account receivable staff can also work with patients to reduce their balance.  A review of each overdue patient account could significantly improve receivables.

4. Restricted Mode of Payment

Psychiatric facilities with a sole mode of the payment run the risk of no-or-late payments. A restricted mode of payment can pose an obstacle when collecting payment. Hence, psychiatric facilities should keep various modes of payments such as accepting payments to maintain smooth cash flow.

Hiring a Collection Agency

As previously stated, inadequate accounts receivable management processes are significant contributors to the financial loss of psychiatric practices. Unfortunately, this is one of the greatest challenges psychiatric firms face. One of the simplest methods available to counter this is to hire a professional collecting agency.

Psychiatric facilities that are unable and unequipped to monitor and manage their accounts receivable can hire a professional collection agency to consult and provide aid in managing their accounts receivables. A collection agency work to reduce the time a firm receives payment for an outstanding claim by tracking these claims and researching the reason why they haven’t been paid yet, thus ensuring that the psychiatric facility receives payment from every claim. With the help of a collection agency, payment can occur within weeks. Besides, a professional collection agency has an accounts receivable management protocol in place. This means that they can help a psychiatric facility increase its client’s collections, minimize reimbursement issues, and speed up their cash flow. These agencies also provide follow up services to ensure that claims are paid promptly and that any issues hindering immediate payment are resolved.

The Bottom Line

A good accounts receivable process can transform the cash flow of any psychiatric practice from negative to positive. A seamless billing and account receivable process commences with analyzing the current account receivables methods and modify them where needed or hire a collection agency to ensure debts and outstanding claims get paid.

Medical practitioners specializing in women’s health often deal with the unpaid medical bills of their patients. Most medical professionals and their staff are tired of following up on unpaid patient balances, and the situation deteriorates each year.

Collection Agencies specializing in medical collections have helped general physicians and OB-GYN doctors recover past-due bills. These debt collectors understand the delicate nature of the doctor-patient relationship. Debt Collectors refrain from embarrassing patients as intensive collection strategies may spoil the reputation and relationship with the doctor. They must use a friendly/diplomatic approach to recover such debts. Women are extremely sensitive to pregnancy and gynecology issues, therefore accounts receivable related to women’s health must be dealt with great compassion by your  Collection Agency.

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Regular follow-ups are crucial to ensure timely payment of outstanding bills. Without a systematic follow-up process, accounts receivable can quickly pile up. : Sometimes, insurance companies delay payments due to administrative issues. Claims can be denied or rejected due to various reasons such as incorrect patient information, inaccurate coding, or services not covered by the insurance plan.

Handling Account Receivables Issues for OB-GYN Professionals

As with any service that leads to a bill, there are situations where doctors have to approach billing issues and navigate financial situations with their patients. With the healthcare system, these can be tough issues to handle. Women’s health professionals and medical professionals practicing in OB-GYN must be able to resolve account receivables issues sensitively and effectively. Whether you’re dealing with billing issues, past due accounts, debt recovery, or minimizing AR, if you’re a women’s health professional, these are ways you can handle your finances and continue to advocate for your patients.

Why Do Medical Professionals Have Past Due Accounts

Healthcare costs have been rising in the US for years, and patients have difficulty keeping up with their medical expenses. According to this study, 62% of people say they have a serious concern about whether or not they’ll be able to pay for medical care. But of course, sometimes those bills can’t be avoided, and then you have patients who need the testing but struggle to pay the bill. Particularly now that high deductible health plans are more common, hospitals have had to figure out new ways to collect patient payments. There are a few ways OB-GYN practices can do this, detailed below.

How to Deal with Past Due Accounts

You can minimize your accounts receivable by requesting proper payment at the time of care, but that depends on knowing how much the patient will owe. If your patient’s bills can’t be calculated upfront, you can use the following methods to try to encourage prompt payments from your patients.

Start with in-person reminders– There are some ways that you can re-train your staff to handle past-due accounts in a natural and non-confrontational. For instance, you can ask your receptionist to check for past-due accounts and ask patients if they’d prefer to pay with cash or a credit card, rather than asking, “Do you want to pay your outstanding balance today?”.

Establish a protocol– When collecting past due bills, there should be an established number of calls and standard methods of communicating to clients that they have an outstanding payment due. That way, your clients will all be dealt with the same way without variation in their experience.

Be firm and diplomatic– It’s essential to be assertive when dealing with patients who have not paid their bills, particularly since you will likely encounter evasive responses and excuses.

Offer a payment plan– There’s no getting around it. Asking your patients to address their unpaid bills can be difficult, especially since you don’t know their situation. Healthcare is an incredible expense, and your office can be human about offering a solution. You can offer a payment plan to ensure that they are taking steps to cover the debt without demanding a lump sum that they might not be able to afford.

Collection Agency– Hire a good debt collection agency that has experience in recovering money for women health professionals and medical professionals practicing in OB-GYN.

Billing issues can happen no matter what industry you’re in and health is no exception. Recovering money from defaulters is a reality of life for doctors, and it’s crucial that you are able to do so in a way that still allows your patients to trust you. By following these guidelines and remembering to be human, you’ll be able to address billing issues in the medical field as effectively as possible.

If you need a medical collection agency with experience in dealing with debtors of OB-GYN and Women’s Health doctors: Contact us

There is much talk in national politics about the cost of healthcare and medical debt in general. Policy concerns aside, the rising medical debt in this country has a severe negative impact on medical practices from a business and accounting standpoint. Health care providers, like any other for or not for profit organization, need healthy cash flow to stay afloat. In many ways, poor cash flow can be a chronic illness for medical practices. Managing how much money your practice has, where it goes every month, and who is not paying, is the key to good business health. A good understanding of basic accounting concepts is helpful, but so too is an awareness of attitudes towards medical debt, realities of collection practices, and solutions to ensure your medical business practices good financial hygiene.

Understanding Accounts Receivable

Accounts receivable is an account status, and the total figure of accounts receivable is the total amount owed to a business. An accounts turnover receivable ratio is a calculation to measure the efficiency of a business’s billing practices. The formula is simple, but essential for businesses that measure their health in accounts receivable days:

Accounts Receivable Turnover = Net Credit Sales / Average Accounts Receivable

In this formula, Net Credit Sales are transactions where cash is collected at a later date, minus sales returns and sales allowance (or price reductions due to a problem with the sale.) Average accounts receivable is a figure derived from a business’s accounting records and represents how much a business typically has outstanding in credit sales.

For example, if a company has $10,000 in accounts receivable at the end of this year and $30,000 at the end of last year, its average accounts receivable would be $20,000. Let’s assume it also had $100,000 in gross credit sales, and $10,000 in returns, for a net credit sale of $90,000. In this example, the company’s accounts receivable turnover ratio would be determined by dividing $90,000 by $20,000, resulting in 4.5. This figure means that the company collects its receivables 4.5 times a year.

The higher the ratio, the more efficient the practice is in its billing. A low ratio indicates poor collection practices or patients that cannot afford their care.

Days in accounts receivable is an important metric because it gives insight into more than your patients’ financial ability to pay. This metric also reflects the efficiencies in your medical practice. There may be reasons why some patients cannot pay that are beyond your control, but often medical practices with high accounts receivable are those that lack systems and controls to prioritize payment. And, due to national trends that have been brewing for decades, the need today is urgent for medical practices to get a handle on their billing and payment practices.

The State of Medical Debt

According to recent figures, at least 43 million Americans have overdue medical bills. Some of the reasons for this significant figure can be debated. Medical care can be costly, but advances in medicine require innovation and expensive research. And increasingly complex insurance rules and changes in coverage can mean more people have to pay out of pocket for their care, without having money in their pockets.

Some believe this problem will only grow bigger, as trends like higher costs and higher insurance deductibles can increase bad debt for hospitals and providers. Legislation is in the works that will allow for bundled billing. The idea behind this is that patients are often saddled with medical debt because of a lack of insight on their part into patient financial responsibility. But that is only part of the problem.

Medical Bills from the Patient Perspective

Patients, regardless of ability to pay, often lack incentives to pay their medical bills. A medical provider is not like a utility or credit card issuer that can shut off the lights or decline a purchase. But in today’s connected and data-driven world, there are solutions within easy reach of all medical providers. It starts with how a medical practice is managed a clear understanding of accounts receivables as a measurement of business health. These solutions continue with clear communication that makes your patients your ally in ensuring your continued viability as a medical practice.

Solutions to High Accounts Receivables in Medical Practice

Medical practices should always work to minimize accounts receivable, as unpaid bills add nothing but cost to the bottom line. To have the revenue necessary to remain an economically viable business, a medical practice needs healthy cash flow. Throwing one’s hands up and blaming insurers or a national health care crisis does little to reverse accounts receivable at the provider level. But, a system that communicates, verifies, facilitates, and automates facilities patient responsibility can make the difference between a clean bill of financial health or an accounts receivable-induced flatline. 

Communicate expectations

Clear communication is the foundation of many solutions. With healthcare, patients need to know what the expectations are regarding their role in their care. Communication about financial matters should be as frequent as necessary for the patient not to be surprised or unprepared for payment. Should the care plan be more expensive than the patient can afford, the provider can work with the patient to schedule procedures or communicate with the patient’s insurer for clarification on coverage. 

Verify coverage

Regardless of patient communication, it is incumbent on medical offices to ensure that the patient’s coverage is accurate. A major reason for medical accounts receivable is a misunderstanding of the insurance billing process, on all sides of the equation. Just as communication is crucial, verifying insurance coverage should be a part of patient onboarding and ongoing verification of coverage. 

Facilitate payment

The old way of billing — sending a paper bill a few weeks after a patient’s care is complete, for example — does not encourage prompt payment. Today, some people don’t even use paper checks. Patients pay their Netflix subscriptions each month without fail, not only because that bill is so small, but also because the company makes payment a no-brainer. Embrace online payment, or even payment by phone to make a patient’s financial responsibility easier. 

Automate processes

These solutions work, but as you can see, they require work. Rather than burden a practice with the administrative tasks of communicating finances, verifying coverage, and accepting payments, practices should look to automated processes to manage their billing and payment follow up procedures. Today’s accounting and billing software can handle a large part of this process for you, with such features as automated payment reminders and incentivization.

Cash flow is essential for a medical practice’s success, but numerous obstacles can get in the way. With a clear understanding of receivables turnover ratio, and policies to make payment responsibility a priority for the provider and the patient, medical practices can regain control of their accounts receivables.

If you need a medical collection agency to recover money from your past due accounts: Contact Us

If you’ve been in business for any appreciable amount of time it’s likely that you’ve encountered bad checks. These are checks you deposit that can’t be paid by the writer’s bank because the account drawn on has insufficient funds to cover the amount or the signature does not match. This is how they get the designation NSF  ( non-sufficient funds).

Not only do bad checks cause problems for your cash flow, but they also end up costing you extra money in fees. Thankfully, several methods are available to businesses to collect on these returned checks, and many of them can be reasonably quick and painless.

Need a Collection Agency to recover money due to Bad/Bounced Checks? Contact us – Serving Nationwide We can help you recover unpaid bills using a low-cost flat fee service, or a contingency-fee only service. Most states will allow adding a $30 NSF fee. Did you know most collection agencies keep this whole fee? Only a handful of collection agencies will split this fee with their client. Serving Grocery Stores, Convenience Stores, Girl Scouts, Boy Scouts, Pizza Chains, and Electric/Utility Companies.

When considering your approach, you should do whatever you can to avoid legal action. Lawsuits in small claims courts are costly and time-consuming. Also, because it’s your responsibility to collect any judgments you’re awarded, lawsuits are frequently ineffective, even when you win. Half of all judgments go uncollected, which means you may very well incur legal fees for no reason.

Here are five ways you can attempt to collect what’s owed you without resorting to court.

Call Your Customer’s Bank

The good news is that most people don’t write bad checks intentionally. More often than not they’re simply unaware that they don’t have the funds available. It could be that a check they’d written months ago was suddenly deposited. Or they miscalculated their account balance.

Whatever the case, it’s likely that the shortfall will be rectified once the check-writer is alerted to his or her mistake. So wait a few days and then ask the bank to check if funds are now available. If they are, you can redeposit the check.

The bank may also offer an enforced collection service. This will capture the needed funds from the next deposit your customer makes automatically.

Contact Your Customer

If you have your customer’s email address or phone number you can contact them to make them aware of the situation. This might feel pushy, but honest customers will usually welcome the alert. If they haven’t already gotten word from their bank your communication could help them avoid further bounced checks.

You can send your customer a certified letter if you don’t have immediate contact information. Not only does this alert them to the situation, but it also establishes a paper trail that could prove useful if your collection attempts prove unsuccessful.

Whichever way you make contact, politely and professionally ask for a payment, offering a number of alternative payment options.

Try a Check Recovery Service

Remembering to check in with your customer’s bank on a regular basis is difficult, and people frequently forget. This can be a problem because you only get three attempts to redeposit, and you don’t want to do that if you don’t know there are funds available. A better option is to use a check recovery service.

The provider of the service will monitor your customer’s account balance for you on a daily basis and then strategically redeposit the check when it’s most likely to be paid. This is a “set it and forget it” service, maximizing your chances of getting paid.

Best of all, you’ll get the full value of the check because check recovery services are nearly always free. Payment is taken as a fee charged to the bad check writer. Of course, the service can only work if the customer eventually deposits sufficient funds, and your check hits their account before those funds go elsewhere.

These are third-party services that guarantee payment on checks up to a certain amount. They can be beneficial but do come with a cost, so it’s essential to determine whether the benefits outweigh the expenses for your specific practice.

Your District Attorney’s Office May Be Able to Help

If you’ve exhausted friendlier options, you may find some relief through your local district attorney’s office. In some areas, they’ll send a letter on your behalf requesting an immediate satisfaction of the debt in order to avoid prosecution.

While this is generally an empty threat, the scare value alone is often enough to spur your customer into action.

Contact a Collection Agency

Contact a good collection agency if you’ve still found no relief after attempting everything listed previously. This is the most expensive option that doesn’t involve small claims, on average charging 40% of any amount collected, but it can help recover some portion of what’s owed you. Parting with 40% of something is always preferable to keeping the entirety of nothing.

The benefit of using a collection agency is that they’ll take over the entire collections process for you, freeing your time to focus on your business. Depending on the provider, it won’t cost you anything if they’re unsuccessful, so it’s certainly worth the attempt.

Remember that lawsuits are expensive, and any judgment you’re awarded could cost you considerably more when you attempt to collect it. It’s advisable to avoid court unless the amount owed is sufficiently high to warrant the cost and effort. As a method of last resort, a collection agency is a much better choice.

New Jersey is no longer a standard collection environment. With the enactment of the Louisa Carman Medical Debt Relief Act (July 2024), the state has implemented some of the strictest patient protections in the nation. If your current agency is still relying on credit reporting threats or aggressive wage garnishment, they are walking you into a compliance minefield.

For healthcare CFOs and Revenue Cycle Directors—from the large health systems in Hackensack to private practices in Cherry Hill—the “old way” of collecting is dead. You cannot simply demand payment; you must now navigate a complex flowchart of mandatory payment plans, income-based garnishment bans, and strict interest caps.

We don’t fight these new laws; we have re-engineered our recovery process to function within them, ensuring you get paid without triggering an Attorney General investigation.

Need a Medical Collection Agency in New Jersey? Contact us

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Deep Analysis: The 3 New Barriers to Revenue in NJ

The Louisa Carman Act introduced three specific “revenue blockers” that most national agencies are not prepared for.

1. The “600% FPL” Garnishment Ban

• The Law: Effective July 2025, New Jersey prohibits wage garnishment for medical debt if the patient’s income is below 600% of the Federal Poverty Level.

• The Risk: This is not just for “low income” patients. For a family of four, 600% of the FPL is nearly $187,000. This effectively removes the threat of garnishment for the vast majority of your middle-class patients.

• Our Solution: We shift focus away from wage garnishment (which is now often impossible) and towards asset execution (bank levies) and voluntary settlement negotiation based on psychological urgency rather than legal threats.

2. The “Credit Reporting” Blackout

• The Law: Medical debt can no longer be reported to credit bureaus if it is under $500 (regardless of date) or for any services provided after July 22, 2024. Any reported debt that violates this becomes legally void.

• The Risk: The traditional agency tactic of “wrecking their credit score” to force payment is now illegal in New Jersey.

• Our Solution: We rely on direct contact frequencies and attorney-backed demand letters. Since we can’t hurt their credit score, we use the “nuisance factor” of consistent, compliant professional follow-up to drive payment.

3. The Mandatory 120-Day “Freeze”

• The Law: You cannot engage in any collection actions until 120 days after the first bill is sent. During this time, you must offer a reasonable payment plan (max 3% interest).

• The Risk: Sending an account to collections at “Day 90” (the industry standard) is now a violation of state law.

• Our Solution: We have adjusted our intake API to automatically reject NJ files younger than 120 days, protecting you from accidental “early placement” liability.

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Our 4-Step “Garden State” Recovery System

We have calibrated our model to clear the hurdles of N.J.S.A. 2A:44 (Liens) and the new Medical Debt Relief Act.

Phase 1: The “Charity Care” Scrub (Pre-Collection)

• The Strategy: New Jersey regulations (N.J.A.C. 10:52-11.5) strictly mandate that hospitals screen patients for the Charity Care Program before billing.

• The Action: We audit your files to ensure this screening is documented. If a patient claims hardship, we pause collection and help facilitate the Charity Care application. This often results in you getting paid by the State rather than chasing a broke patient.

• Cost: Included in service.

Phase 2: The “Safe Harbor” Outreach (Steps 1 & 2)

• The Strategy: Once the 120-day freeze lifts, we send the legally required “30-Day Pre-Collection Notice” which includes the mandatory statement that the debt will not be reported to credit bureaus.

• The Psychology: We use this notice to offer a “Final Amnesty” payment plan that complies with the state’s new 3% interest cap.

• The Cost: Flat fee (approx. $15/account). You keep 100% of recoveries.

Phase 3: The “Lien & Levy” Escalation (Step 3)

• The Strategy: Since wage garnishment is restricted for many, we look for other liquidity.

• For Accident Cases: We utilize N.J.S.A. 2A:44-41 to file hospital liens with the county clerk. These liens attach specifically to personal injury settlements, ensuring you get paid before the patient receives their check.

• The Cost: 40% contingency.

Phase 4: Strategic Litigation (Step 4)

• The Strategy: For high-income debtors (above the 600% threshold) or those with significant assets, we file suit in the Superior Court of New Jersey. We target bank accounts and property liens, which are often more effective than wage garnishment in NJ anyway.

• The Cost: 50% contingency.

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Regional Strategy: One State, Two Markets

We adjust our approach based on the patient’s economic zone.

Region	Economic Profile	Collection Strategy
North Jersey (Bergen/Hudson)	High Income / Commuter	High usage of payment plans. We structure plans to fit the “3% interest” rule, making them attractive alternatives to ignoring the bill.
South Jersey (Camden/Gloucester)	Philly Metro / Mixed	Heavy focus on Insurance Cleanup. Many patients here cross state lines for care; we are experts at resolving “Out of Network” disputes with PA-based insurers (like Independence Blue Cross).
The Shore (Monmouth/Ocean)	Seasonal / Retail	We time our calls to align with seasonal cash flow for business owners and service workers.

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FAQ: The Executive Summary

Q: Can we charge interest on medical debt in NJ?

A: Yes, but it is capped strictly at 3% per year under the Louisa Carman Act. Charging the old standard of 6-10% is now illegal. We automate this calculation to ensure you never commit usury.

Q: What is the Statute of Limitations?

A: You generally have 6 years to file a lawsuit for unpaid medical bills in New Jersey. However, because you must wait 120 days to start, your effective window is slightly shorter. Speed is critical once that window opens.

Q: How do we handle accident cases (MVA)?

A: New Jersey private hospitals must file a Notice of Lien with the county clerk to secure rights to a settlement. Unlike some states, this must be done meticulously to prevent the “release of claim” by the patient. We handle this filing for you.

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Click here for a Free “Louisa Carman Act” Compliance Audit

Given Michigan’s unique intersection of “No-Fault” auto insurance laws and rigid garnishment reporting rules, it is crucial to partner with a specialist who understands the local Public Health Code. Attempting do-it-yourself collection here doesn’t just risk lower recovery—it risks permanently extinguishing your right to payment under the strict “One-Year Back” rule.

For revenue cycle directors in Michigan—whether you are with a major system like Henry Ford Health or a private practice in Grand Rapids—collecting medical debt requires navigating one of the most complex insurance environments in the country.

If your agency treats a “PIP Claim” the same way they treat a standard “Health Insurance” balance, they aren’t just failing to collect—they are actively letting your legal claim expire. We act as a specialized revenue firewall, protecting you from the administrative traps hidden in Michigan’s statutes.

Need a Medical Collection Agency? Contact us

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Deep Analysis: The Three “Revenue Leaks” in Michigan

Collecting in the Great Lakes State requires a strategy that accounts for specific legislative pitfalls. Here is why standard national agencies fail here:

1. The “One-Year Back” Rule (No-Fault Auto)

• The Law: Under Michigan’s No-Fault Act (MCL 500.3145), you generally have only one year from the date of service to file a lawsuit against an auto insurer for unpaid medical bills.

• The Risk: Many agencies treat auto-accident accounts like standard bad debt, letting them sit in a queue for months. If they wait 12 months and 1 day, your claim is extinguished forever. You cannot sue the insurer, and strict balance-billing rules often prevent you from billing the patient.

• Our Solution: We flag all “MVA” (Motor Vehicle Accident) accounts upon intake. If the Date of Service is approaching the 10-month mark, we expedite the file to our legal team to preserve your rights before the statute expires.

2. The “6-Month Garnishment” Disclosure

• The Law: Michigan allows wage garnishment until the debt is paid (unlike states where it expires quickly). However, there is a catch: The creditor must provide a statement of the remaining balance to the employer and defendant every 6 months.

• The Risk: “Set it and forget it” agencies often fail to send these mandatory updates. This creates a valid defense for the debtor to have the garnishment dismissed and can even compel you to return collected funds.

• Our Solution: Our system automatically generates and mails these 6-month statutory updates, ensuring your revenue stream doesn’t dry up due to a clerical error.

3. The Strict “100-Day” Lien Limit

• The Law: Michigan’s Hospital Lien Act is much tighter than other states. You can only place a lien on a patient’s tort settlement for the first 100 days of treatment (following the accident).

• The Risk: Filing a lien for treatment provided on “Day 101” is legally invalid and can expose your facility to “slander of title” counter-suits.

• Our Solution: We audit your itemized bills before filing any liens. We separate “Lien-Eligible” charges from “Standard Collections” to ensure every legal filing is bulletproof.

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Our 4-Step “Great Lakes” Recovery System

We have calibrated our recovery model to fit Michigan’s 6-year statute of limitations for contracts and its specific consumer protections.

Phase 1: The No-Fault Triage (Pre-Collection)

Before we demand payment from a patient, we check the “Financial Class” of the debt.

• Is this an Auto Accident? If yes, we verify if the “One-Year Back” clock is ticking. We don’t harass the patient for a bill that Allstate or State Farm should have paid.

• Cost: Included in service.

Phase 2: The “Statutory Nudge” (Steps 1 & 2)

• The Strategy: We send a series of firm, compliant demands. We reference Michigan’s 6-year Statute of Limitations, reminding debtors that this debt will not simply “go away” quickly (unlike in states with shorter windows like PA or DE).

• The Cost: A simple flat fee (approx. $15/account).

• The Benefit: You clear out the low-hanging fruit—patients who simply forgot to pay—without paying a commission. You keep 100% of these recoveries.

Phase 3: The Wage Lever (Step 3)

• The Strategy: If the patient ignores us, we escalate. Michigan law allows garnishment of up to 25% of disposable earnings.

• The Negotiation: We use this as leverage. “Mr. Jones, a court order could take 25% of your paycheck. Let’s set up a voluntary plan for 10% instead.” This logic works.

• The Cost: 40% contingency.

Phase 4: Litigation & Maintenance (Step 4)

• The Strategy: For high-balance accounts, we file suit in the local District Court. Once we get the judgment, we manage the periodic garnishment process, including the mandatory 6-month balance statements, so you don’t have to track them.

• The Cost: 50% contingency.

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Regional Strategy: From Detroit to the U.P.

Michigan is economically diverse. We adjust our tactics based on the patient’s location.

Region	Economic Profile	Collection Strategy
Southeast (Detroit/Wayne Co.)	High Auto Insurance Volume	Heavy focus on “No-Fault” coordination and PIP claim verification.
West MI (Grand Rapids)	Medical Manufacturing/Service	Focus on employer benefit verification; higher success with voluntary payment plans.
Northern MI / U.P.	Rural/Tourism	We utilize “seasonality” in our calls, knowing cash flow is tighter in winter months for tourism workers.

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FAQ: The Executive Summary

Q: Can you collect on a debt that is 5 years old?

A: Yes. Michigan has a 6-year Statute of Limitations for contract disputes (which covers most medical debt). However, collecting on a 5-year-old debt is difficult. We recommend listing accounts at 90-120 days past due for maximum recovery.

Q: What if the patient claims they have “No-Fault” insurance?

A: We stop and verify immediately. If they were in an accident, their auto insurance is likely the primary payer. We request the claim number and adjuster info to file before the 1-year deadline hits.

Q: Do you report to credit bureaus?

A: We can, but with caution. With state-level discussions (Senate Bill 451) proposing to ban medical debt reporting in Michigan, we are shifting our focus to direct contact and legal recovery rather than relying on credit damage.

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Click here for a Free Compliance Audit of Your Michigan Claims