Debt Recovery

Debt Collection Agencies have been assisting music stores and music learning centers to recover money from past-due accounts. Their recovery rate may vary, but a collection agency knows how to deal with those challenging debtors, explain the consequences of not paying, and take all permissible actions by following the federal and state debt collection laws.

Music stores in America are struggling with ever-increasing accounts receivable, and this trend is being seen nationwide. People rent musical instruments or buy accessories; however, few cannot pay their installments on time.

Parents of many kids enroll their kids in private music lessons like guitar, piano, or keyboard classes, but their wards drop out even though they are under the contractual agreement to make payments for the full term of the music course. In-house employees can send invoice reminders and make a few calls, but they are not trained to do anything beyond that.

The involvement of a collection agency makes a huge difference. No defaulter wants their account to be transferred to a collection agency because all those excuses, which were so far working with the music store, ain’t going to work anymore. Debt collectors are experts in talking around those excuses.

If you are a music store and looking for a good Collection Agency with extensive experience in recovering money from unpaid bills: Contact Us

A collection agency will not recover 100% of the accounts assigned, but let’s assume that an agency can recover from 40% of those past-due accounts. Then this is the money that the music store would have never been able to collect themself.

Collection Agencies can put debtors under the payment plan if they cannot pay bills in a lump sum. Equipped with lawyer-approved Collection Letters, Collection Calls and Legal Collections, they can collect from at least those who have resources to pay but have been avoiding. They are also able to trace missing people using the Skip Tracing service. Some debtors could have filed for bankruptcy, therefore their debts could have been legally wiped out. Collection Agencies run a Bankruptcy Scrub on all accounts assigned to avoid such cases. They can do collections in both Spanish and English.

Music stores, Rental and Repair shops have been hiring collection agencies for decades, and their role in protecting accounts from turning red is very important. Have a clear strategy for dealing with late payments, including when to charge late fees, when to send a payment to collections, and when to consider legal action.

Nearly 2 million Americans undergo plastic surgery every year. Unfortunately, thousands of these patients default on their payment obligations, and many of these receivables are eventually forwarded to a Collection Agency.

Since cosmetic surgery is considered an elective surgery, it is usually not covered by regular insurance. Even though most patients use their Cash Savings, Health Cards ( like Care Credit Card), PatientFi, and Personal Credit Cards to make payments, many patients make payment arrangements directly with the doctor’s office. These arrangements can vary in detail and scope.

Most popular plastic surgery procedures include: Breast augmentation, Liposuction, Eyelid surgery, Nose surgery, Tummy Tuck and Tumor removal. It is estimated that Americans spend over 16 billion dollars annually on cosmetic and plastic surgeries. Since the cost of these procedures run from $3,000 to upwards of $25,000, non-payment by just a few patients can have a huge impact on the cash flow and profitability of the doctor’s office.

The in-house staff at the plastic surgeon’s office is really not qualified or experienced to handle past-due bills beyond sending a few reminder letters and making phone calls. This is where a Debt Collection Agency comes in and attempts to recover the unpaid bill more persistently, diplomatically and (most important) legally. Collection agencies have tools and subscriptions to various services that assist in a successful recovery of the medical bill. They can even initiate legal action against the patient by taking him to court if nothing else works.

The moment a Collection Agency is involved, the whole equation changes. Frankly, no one wants to hear from a Collection Agency.

The patient knows that the case has been forwarded to a professional debt collector and all those excuses he has been giving to the plastic surgeon’s office so far will not work anymore. They will now have to face all possible recovery measures permissible under the law.

The fees charged by collection agencies are worth the investment. In-fact if a plastic surgeon wishes, the case can be directly assigned for contingency collections in which there are no fees unless a recovery is made.

A plastic surgeon should hire a collection agency carefully. It is important to know whether the agency has extensive experience with medical collections and if it is insured. Do not go for a collection agency simply because it is near you, go for the better one instead. Your collection agency should be licensed to collect in the state where your debtors are located.

Just a handful of collection agencies perform the Litigious Patient scrub to check if the patient has a history of filing lawsuits ( or frivolous lawsuits), in such cases, the collection agency will advise the doctor’s office to take an alternate approach just to be safe.

If you need a debt collection agency with extensive experience in medical collections: Contact Us

Accounts receivable is a huge problem for Body Shops. There are too many customers who do not make payment in full after the auto-repair work is completed.

Need a Collection Agency for your Automotive Workshop: Contact Us

Hiring an experienced collection agency can reduce the number of unpaid accounts from going into red after your in-house efforts have failed.

Collection Agencies are well-versed in debt collection laws. They minimize the chances of a lawsuit because FDCPA laws forbid them from using abusive, unfair, or deceptive practices when they collect debts. Yet their debt collectors know exactly to make a customer pay off if they have the resources to pay.

Auto body shops, like any other business, encounter various billing issues that can affect their revenue and profitability. Here are some of the common billing issues:

1. Insurance Claims: Most of the services provided by auto body shops are often paid for by insurance companies. Navigating through the insurance claims process can be challenging, as it often involves complex paperwork, constant communication with insurance adjusters, and waiting for approvals.
2. Delayed Payments: Sometimes, both insurance companies and customers can delay payments. Delays from insurance companies can be due to discrepancies in the cost estimates or the need for additional documentation. In other cases, customers might delay payments due to dissatisfaction with the service, misunderstanding of the charges, or financial constraints.
3. Disputes Over Costs: There might be disputes over the costs of repairs, especially if the final invoice amount is significantly higher than the initial estimate. This could happen if additional damage is found during the repair process that wasn’t visible during the initial inspection.
4. Parts and Labor Costs: The costs of parts and labor can vary widely, and customers might not understand why they’re being charged certain amounts. For example, the cost of OEM (Original Equipment Manufacturer) parts versus aftermarket parts can vary significantly. Similarly, labor rates can also vary depending on the complexity of the job and the expertise required.
5. Accurate Estimates: Providing accurate estimates can be a challenge. If the initial estimate is too low, customers may be upset when the final bill is higher. On the other hand, if the initial estimate is too high, the shop might not get the job at all.
6. Complexity of Services: The range of services offered by auto body shops can be quite extensive, from simple dent repairs to complex vehicle restorations. The complexity and variety of these services can make billing a challenge.
7. Record-Keeping: Good record-keeping is essential to avoid billing issues. Poor documentation of the work performed, the parts used, and the hours worked can lead to billing errors and disputes.
8. Lack of standardized pricing: Unlike many industries, auto body repair doesn’t always have standardized pricing, which can lead to discrepancies and confusion over billing.

To mitigate these issues, auto body shops should maintain clear and transparent communication with their customers, provide detailed estimates, use efficient billing and invoicing software, and offer different payment options. Training staff on customer service and accurate record-keeping is also essential.

A Collection Agency may arrange payment from a car owner in installments. From Collection Letters to Collection Calls, they can take legal action if needed. Car repair garages must keep the backup documentation ready if the debtor (car owner) disputes the amount of debt owed. You are supposed to provide that information Collection Agency within a matter of days.

Many collection agencies also do a “Litigious Debtor Scrub,” which indicates if the debtor (car owner) has a previous history of suing businesses. They often recommend not pursuing the case or suggesting an alternative approach to recover money.

If you need a cost-effective Collection Agency to help you recover past-due bills: Contact Us

Medical debt is a massive issue in the United States and Ohio is no exception. With a population of over 11 million, Ohio ranks in the top ten most inhabited states in the U.S. Almost 35% percent of Ohio adults struggle to pay their medical bills.

While the Affordable Care Act (ACA) expanded access to health insurance, not everyone has coverage. Those without insurance often face much higher costs, leading to significant debt. The uninsured rate is at an all-time high as of 2018, and is one of only eight states to see this drastic climb. Almost 728,000 people in Ohio are no longer insured, which has resulted in massive medical debt.

Need a Collection Agency in Ohio? Contact Us

A collection agency can recover unpaid bills ethically using a diplomatic approach. They can offer fixed fee and contingency fee services as per your requirement. Your in-house staff will be able to focus on their core tasks rather than wasting time on old unpaid invoices.

Ohio Medical and Health Care Debt Collection Statistics

The Consumer Healthcare Experience State Survey gathered 1,000 Ohioans for more information on medical debt. Medical care costs have increased so much that some people choose not to seek medical help. 30% of those surveyed specifically put off going to the doctor. 24% skipped a recommended test or treatment and 35% struggled to pay off what medical bills they have acquired.

Ohio has been particularly hit hard by the opioid epidemic. Doctors have to grapple with the complexities of pain management, addiction, and mental health issues related to opioid use.

Even with a portion of the state population taking out loans or using credit cards to pay medical debt, a lot remains unpaid. These unsettled bills force medical professionals to seek out Ohio medical debt collection agencies to cover their necessary tools and staff costs.

Ohio Medical Debt Collection Agency Laws

In Ohio, there are a couple of laws concerning medical debt. Apart from the debt collection laws like FDCPA and HIPAA laws, a creditor (i.e. the healthcare professional or hospital) has a set amount of time they must abide by before they can pursue a debtor (i.e. the patient) for unpaid medical debt. This is known as the statute of limitations and it’s different for every state.

Ohio Revised Code section 2305.06 permits creditors to seek unpaid medical debt within 15 years from the default payment. This code is based on a written contract, so a medical bill can be seen under this stipulation. That means that a creditor has a window of 15 years to send their patients’ unpaid bills to an Ohio medical debt collection agency.

If a patient makes an oral agreement to repay their medical expenses, then the statute of limitations decreases significantly. In lieu of a written contract, the Ohio Revised Code section 2305.07 states that oral repayment agreements are valid for six years. A medical provider can bring their patient to action for not paying these medical bills anytime within that six-year time frame. 

How This is Effecting Medical Professionals in Ohio

The constant hunt for medical repayment has put doctors and hospitals in a tough spot. According to Injury Claim Coach, “Federal law requires Medicare-approved hospitals to provide emergency medical treatment to anyone who needs it, even when the person doesn’t have health insurance.” Instead, medical professionals have to offer repayment options or give them various ways to pay for their medical treatment.

Many medical professionals in the U.S. have suffered salary decreases from the unstable medical debt situation that is sweeping across the nation. This could be why more students seek specialty medical courses rather than primary care. Doctors in specialty fields have the leverage to earn more than primary care physicians. As a result, Ohio is in the midst of a vast primary care doctor shortage. According to the U.S. Department of Health and Human Services, “by 2025, Ohio is projected to be shy 1,200 primary care physicians.”

While Ohio scrambles to get more primary care doctors, the medical debt continues to pile on. Medical professionals (primary care doctors in particular) who are in need of debt relief may do well to seek help from a medical debt collection agency in Ohio.

Need a Medical Debt Collection Agency in Ohio? Contact us

References:
https://www.healthpolicynews.org/daily_review/ohio_statistics/
https://www.dispatch.com/news/20190904/nine-years-later-i-still-owe-19000—ohioans-struggle-with-surprise-medical-bills

When a patient doesn’t pay their medical bills, it directly impacts the healthcare provider’s accounts receivable. Not many people know this, but there are several laws when trying to recover your own unpaid medical bills. Your in-house staff can unknowingly violate these debt-collection laws, leading to legal complications and negatively impacting your medical practice’s reputation. Outsourcing your past-due bills to a collection agency will also allow your employees to focus on the core tasks for which they were hired.

Need a Medical Collection Agency? Contact us

• Approximately 15% of Pennsylvanians have medical debt in collections.
• The median medical debt in collections is around $600.
• Pennsylvania’s Medical Assistance (Medicaid) offers health coverage to eligible low-income individuals and families.
• Children’s Health Insurance Program (CHIP): Provides coverage for uninsured children and teens.
• The Pennsylvania Fair Credit Extension Uniformity Act (FCEUA) closely mirrors the federal Fair Debt Collection Practices Act (FDCPA) but extends certain provisions to original creditors, not just third-party collectors.

Hiring a good collection agency with extensive experience recovering medical debts and knowledge of Pennsylvania debt collection laws can recover your unpaid invoices amicably and ethically, protecting your reputation during the process. When unpaid bills become too old (the exact timeframe can depend on the healthcare provider’s policies), they may be written off as bad debt. This reduces revenue and can negatively impact a healthcare provider’s financial health.

Today more and more doctors refer unpaid invoices to a reputable medical debt collection agency to keep their practice afloat. A collection agency will also ensure that your bill is prioritized among other bills that your patient could have defaulted on. 

We all understand the frustrations on both sides of the table. Doctors need their patients to pay in order to have adequate supplies and staffing, while today’s economy doesn’t support to needs of the average civilian. This intuition combined with the necessary laws concerning debt collection practices is what drives medical professionals to hire an experienced Collection Agency.

Read on to learn about the current Pennsylvania medical debt climate to help you determine if a collection agency is the right move for you.

Pennsylvania Medical and Health Care Debt Collection Statistics

As mentioned, one in three Pennsylvania patients cannot pay their medical bills. And all the insurance rate in this state is at a low 5.5%. Those who have chosen not to take on health insurance say it is because the monthly cost is still too high. These uninsured patients put doctors in a difficult place as they have to treat the ill without paying their staff or suppliers.

A survey conducted by the Pennsylvania Health Access Network and Altarum also determined:

• 32% of Pennsylvanians have trouble paying medical bills
• 10% of Pennsylvanians can barely afford to pay for necessities
• 29% delay having medical procedures due to the cost

Pennsylvania Medical Debt Collection Agency Laws

Unlike some outstanding balances, medical bills cannot seize personal assets due to nonpayment. The statute of limitations under Pennsylvania law is four years. This means that medical professionals may contest a lawsuit to try to regain debt owed by their patients via a Pennsylvania media debt collection agency,

These agencies must adhere to the same laws as every other state. Agencies are forbidden to abuse or harass debtors, unlike previous years and must maintain strict moral and professional guidelines.

In the case of a lawsuit, the creditor (i.e. the medical professional) may be able to garnish wages from patients who have outstanding balances.

Pennsylvania Medical Collection Agency Process

Our first step in settling medical debt is to send a demand letter to the patient. This is sent via USPS in the form of a physical letter. Patients have 30 days to dispute the debt from that moment, though a response is appreciated within ten days.

In that time, we recommend the creditor seriously consider to out for Collection calls service or evaluate filing for a lawsuit before the statute of limitations expires. The expiration date does not mean that the creditor cannot still seek payment, but options are minimal and the likely hood of receiving a full payment is really low at that point and time.

Professional collection agencies maintain regular contact with patients and even offer skip tracing and bankruptcy screening services. If you’re still waiting for your patients to pay their medical expenses, it’s the agency’s job to give them options or to find out why payment has yet to be received.

Need a Medical Collection Agency in Illinois? Contact us

References:

https://www.inquirer.com/philly/health/health-cents/medical-bills-health-care-costs-survey-20181025.html

https://www.sapling.com/6884913/pennsylvania-law-medical-bill-collection

https://www.debt.com/medical-debt/collections/

https://www.pghfirm.com/blog/understanding-the-debt-collection-process-in-pennsylvania

http://bankruptcylawyerpa.com/blog/pennylvania-statute-of-limitations-on-debt/

Illinois faces debt collection issues just like the rest of the country. Doctors provide medical treatment to patients without the confidence that they will be paid on time. Unfortunately, several accounts receivable must be turned over to medical debt collection agencies to minimize losses resulting from unpaid patient bills.

If you are a medical professional in Illinois who needs the help of a collection agency, you must ensure that the debt collectors adhere to Illinois state collection agency laws. We’ve also included vital statistics that can help you decide whether or not to move forward with a collection agency.

Need a Medical Collection Agency? Contact us

Here are some key medical debt statistics in Illinois: Approximately 17% of Illinois residents have some form of medical debt. Over 20% of Illinois households earning less than $35,000 annually struggle with unpaid medical bills. Black and Hispanic communities are far more affected by medical debt, with rates nearly double those of white residents. Medical bills are the leading cause of bankruptcy filings in the state, accounting for a significant portion of cases. Cook County has one of the highest rates of medical debt in Illinois, with residents facing challenges in affording healthcare. Hospital charity care programs in Illinois have seen an increase in applications, reflecting the growing burden of medical costs. Illinois ranks 28th in the nation for the percentage of residents with medical debt in collections, indicating a moderate debt burden compared to other states.

Illinois is governed by both state laws and federal laws, primarily the Fair Debt Collection Practices Act (FDCPA). The FDCPA protects consumers from abusive, unfair, or deceptive practices by debt collectors.

Illinois has additional laws that supplement the federal law. For example, the Illinois Collection Agency Act regulates the conduct of collection agencies in the state. The act requires collection agencies to obtain a license and sets standards for their behavior.

For written contracts, the statute of limitations is 10 years from the date of the last activity. 

Illinois Medical Debt Collection Agency Laws

In recent years, the U.S. has narrowly defined individual Statute of Limitations for each state. The limitations act as a guideline for Illinois medical debt collection agencies. It negates unprofessional and unwarranted behavior that patients have received from companies in the past. This type of behavior includes harassing, abusing, and using unfair practices in order to get a patient to pay their medical debts. HIPAA compliance is mandatory for collection agencies serving medical debts.

This conduct negatively affected the medical professionals who sold their debt to the collection agency. Thanks to the Illinois medical debt collection agency laws, these actions are no longer prevalent today.

The Illinois medical debt collection agency laws also enforce these two acts:

• Hospital Uninsured Patient Discount Act: This act includes 100% discounts for uninsured patients at certain income levels
• The Fair Patient Billing Act: This law ensures that hospitals provide their patients with multiple payment opportunities with requirements to effectively promote these avenues to their patients to negate the rise of medical debt.

 Illinois Medical Collection Agency Process

Professional collection agencies take a friendly, diplomatic and obligatory approach to settle debts with patients. We want the process to be as smooth as possible and take pride in ensuring the relationships between patients and doctors remain intact.

The debt collection process includes maintaining regular contact with the patient and ensuring they know their payment options. Keeping detailed records of their payments and offering additional services such as skip-tracing, bankruptcy screening, and checking for change of address.

Need a Medical Collection Agency in Illinois? Contact us

 

References:
https://www.chicagobusiness.com/article/20170324/NEWS03/170329904/illinois-unpaid-medical-bills-reach-3-5-billion

www.needhelppayingbills.com/html/illinois_medical_debt_and_bill.html

http://www.illinoisattorneygeneral.gov/consumers/debtcollection.html

https://www.team-iha.org/finance/charity-care-financial-assistance/hospital-uninsured-patient-discount-act