Debt Recovery

Accounts receivable for chiropractors is an ever-growing problem all across America. Insurance coverage is getting more restrictive, and treatments are getting costlier. Depending on which region of the USA you belong to, the unpaid medical bills issue may vary from moderate to severe. Unpaid bills from patients and reduced coverage from insurance companies can severely impact any chiropractic rehab and wellness center.

To give you an idea of how past due accounts quickly eat up into profits – If a chiropractic practice works on a 20% profit margin, say 5% of their patients do not pay, then effectively 25% of their net profit is gone. Collecting money from existing patients is more important than getting new patients.

Serving Chiropractors Nationwide Need a cost-effective Collection Agency for unpaid bills? Contact Us

Chiropractors generally work in small teams. Their in-house staff are neither trained nor well equipped to recover money from those hard collect unpaid bills. Therefore, the chiropractor’s office must take proactive measures to minimize accounts receivable. This includes communicating the cost to the patient in advance and insisting that he should make the payment in full on the day of treatment. For individuals who have a hard time even shelling out the insurance co-pay fees, you should reschedule their appointment as they have a higher chance of not paying for their out-of-pocket expenses anyway. To maximize cash flow, send notices to your patients more frequently than once a month. Before taking any intensive measures on your patients, ensure that there are no accounting errors otherwise, your mistake can prove costly later.

Despite all your efforts, a sizable number of patients will not clear their medical bills, with reasons as simple as forgetting to pay to more sophisticated excuses. Patients may dispute the cost of services, especially if they did not fully understand the cost at the time of service.

Instead of writing these off as bad debts, involve a good chiropractor collection agency to recover money on your behalf. Chiropractors may be a part of a large practice/hospital or running their clinic, but bad debts hurt all.

Our recommendation: Once you cannot recover a patient’s medical bill within 60 to 90 days, forward this account to a good collection agency. Delaying to act on a past-due account will make it harder to collect.

Summary of Collection Agency’s Services

Collection Letters Service

The upfront cost for 5 Collection Letters is about $15 per account. Debtors pay directly to you, no other fees. Low-cost option. Good for accounts less than 120 days past due.

Collection Calls Service

Contingency fee only. No upfront or other fees. Agency gets paid a portion of the money they recover.  No recovery-No fees. Best for accounts over 120 days. A debt collector calls a debtor many times. If everything fails, a possible Legal Suit is recommended by the attorney.

Check this: Cost of hiring a collection agency

* Services offered by a collection agency include Collection Demands, Collection Calls and Legal Action. Their representative should be able to explain which service is appropriate for you.

* Make sure that your chiropractic debt collection agency is accredited by ACA (American Collectors Association) and follows all the debt collection laws specified by the government.

* Debt collectors should be adequately trained and follow a diplomatic approach to collecting your money. They should move over to a more intensive approach if required.

* Chiropractor debt collection agency should have a 24/7 online collections portal and follow steps to secure your data. They must be HIPAA certified as well.

* Their services should be easy to use. No hidden costs or surprises. They should have adequate security, data protection measures, and certifications.

* Their collection attempts should be persistent, and to avoid any argument with debtors, the debt collectors must maintain their patience.

Contact us if you want a collection agency to recover money from unpaid chiropractor bills.

 

 

Property management is a well-paying business and a good income source for landlords. But the biggest stress for landlords, property managers, and apartment managers is collecting rent from tenants on time.

Once the rent is past due, the landlord starts evaluating whether or not he should continue his association with the tenant, pressurize him with warnings or late fees. If the rent is further delayed then should he serve an eviction notice?

Even after the tenant leaves, the property may require fixes, a painting job, and finding a new tenant. All this can lead to at least 30-60 days of further loss of rental income. A collection agency for landlords will swiftly act to recover all/maximum money from the defaulting tenant using all amicable and intensive techniques allowed legally.

Serving Landlords and Property Managers Nationwide Need a Rent Collection Agency? Contact Us

Tenants often do excessive damage to the property. They are supposed to bear the cost of fixing it. Unfortunately, many tenants don’t pay, simply walk out the door and become untraceable too. Property damage costs are tough to recover.

Debt write-offs are common in the rental and property management business. But it can be minimized if landlords have a proper accounts receivable plan.

Have you already sent a late rent notice, made phone calls, even imposed a late fee, and nothing seems to be working? Or maybe the tenant has been evicted and is untraceable now. Not sure what to do next? 

Involving a Rent Collection Agency at the earliest will improve cash flow and mitigate the risk since they are experts in collecting money. That’s what the debt collectors do all day long, every single working day of their life. Very few collection agencies efficiently work in the rental default recovery segment as it is considered a tough paper to collect money.

Collection Demands Service for Landlords

Upfront cost for 5 Collection Demands is about $15 per account. Debtors pay directly to you, no other fees and a low-cost option. Good for accounts less than 120 days past due.

Collection Calls Service (Intensive Collections)

Contingency fee only. No upfront or other fees. Agency gets paid a portion of the money they recover.  No recovery-No fees. Best for accounts over 120 days. A debt collector calls debtor many times. If everything fails, a possible Legal Suit if recommended by the attorney.

The involvement of a rent collection agency is a game-changer. Not only can collectors use various tactics and tools, but once your tenant knows that a collection agency is involved, he knows that things have become a lot more severe. He is more likely to settle past-due rent than when the property manager was trying to handle things himself. The financial situation of a defaulting tenant deteriorates quickly. Therefore it is essential to act fast.

Landlords should hire an expert rent recovery collection agency in their best interest of landlords. Landlords will get more time to focus on your property management business while the collection agency works hard to recover your money. Always take proof of income from your tenant. Keeping communications in form of Text messages and Email is beneficial because you have written proof of what the tenant had agreed to. Verbal assurances given by the tenant to his landlord are of no use for debt collectors or the courts.

Collection Letters, Collection Calls, and Legal suits are the three primary services that collection agencies offer.

What filing a legal case against your tenant?

If home or apartment owners go to the small claims court, they may be able to recover rent, additional damages, late fees and legal fees. However, you must understand that it requires considerable time and energy and, most importantly, that you have followed all rental laws issued in your state, and you are sure that there is no chance that your tenant can sue you back ( like unhygienic or dangerous conditions of the rental unit or that he was threatened). Even with a judgment, it can get really hard to recover your money.

Tips for Selecting a good Rent Collection Agency

1. A collection agency should attempt to collect the rent diplomatically without damaging the relationship between the tenant and owner/manager. They should be well aware of debt collection laws and professionally handle all debtor excuses.

2. It should be able to perform collection activities on tenants of single-family homes, retail shops and apartments. Suppose the unfavorable financial situation of the tenant is temporary. In that case, the debt collector can negotiate and place the tenant under a payment plan so that all rental dues are settled amicably.

3. A rent collection agency should be able to provide various payment options, including online payment, PayPal and wire transfer. Collection agents should also be able to accept major credit cards and checks over the phone.

4. For eviction cases, a collection agency will go for intensive collections directly. This includes Collection Calls or a legal suit.

5. A collection agency should have an online client portal using which a property manager should be able to stop the collections activity if you want. Provide backup documentation to the debt collector when the need arises, monitor real-time performance reports and submit additional accounts online.

6. Using advanced Skip Tracing methods, a collection agency should have an effective method for tracking down tenants who have changed their address and are untraceable.

7. There should be a clear accounts receivable strategy with no exceptions. A collection agency should convey to the property managers and owners the importance of assigning the accounts early rather than repeatedly falling back on the inner feeling that the rent may get paid next month in full.

8. Should report accounts to credit reporting agencies: Experian, TransUnion, Equifax whenever needed.

9. Provide a flexible strategy for early- and late-stage (over 120 days past due). There should be no commission or contingency fee with their flat fee process.

10. No hidden costs or minimums and must have a national network of legal advisers.

By assigning the accounts to a rent collection agency on time, landlords will see an increased rate of return on their past due accounts.

These cities and nearby regions face the maximum number of defaults:
1. New York City, Manhattan, Brooklyn and Rochester
2. San Francisco Bay Area, Sacramento, Los Angeles and Glendale, California
3. Miami and Orlando, Florida
4. Province, Rhode Island
5. College Station, Dallas, Houston, and Irving, Texas
6. Boston, Massachusetts
7. Cincinnati, Ohio
8.  Washington, D.C. and
9. Philadelphia

Veterinarians have an immense love for animals, and every day they put beautiful smiles on the face of pet owners by curing their furry family members. Despite the risk of being bitten, kicked and scratched, a veterinarian must keep himself safe from contracting diseases. Veterinarians do not work only for money, but emotional and intellectual rewards in this field are equally rich and diverse.

Unfortunately, veterinary clinics and pet hospitals experience a slow cash flow. Even a small percentage of overdue bills can significantly strain most clinics. Many pet owners rush to a veterinarian without proper financial planning and emotions run quite high. Some pet owners don’t have the funds to care for their pets. Not all clients who show up have ample resources or carry a CareCredit card or equivalent. Most veterinarians are forced to offer payment plans to avoid the risk of losing business from such pet owners. An experienced collection agency will help you recover from unpaid invoices in an amicable manner such that your clinic’s reputation is not damaged. 

Recovering Money for Vets Nationwide Need a Veterinary Collection Agency? Contact Us

Veterinarians face many professional challenges, such as competition from mobile clinics, mega pet stores and online diagnosis services. Additional problems include hassle finding and retaining good employees, insurance expenses, hiring a CPA, consulting a lawyer for legal advice, and increased competition from other veterinary practices.

Hiring a collection agency will allow vets to keep their focus on what they are good at, and works towards getting more clients without worrying about overdue and unpaid bills.

There was an uptick in dog and cat adoption activity nationwide during the Covid-19 pandemic. This means a spike in business from these new pet owners. However, due to massive job losses, many owners won’t be able to pay their bills on time and will need the help of a collection agency to recover their money.

Hiring a Veterinary Collection Agency

There is one thumb rule to minimize your overdue accounts receivable. If a pet owner has not cleared your bill after repeated reminders and your invoice has been 90 days past due, simply forward this account to a professional Debt Collection Agency.

Neither you nor your staff members are experts in collecting debt like collection agencies do. For about $15 per case, they will send five diplomatic collection demands to your clients with their business names written on them. To improve the effectiveness of their written demands, they perform many scrubs to enhance the accuracy and precision of their letters.

Veterinarians and pet hospitals can also opt for the contingency-based “Collection Calls” service, which has zero upfront costs. A collection agency only earns if they recover your money; otherwise, there is no charge for using this service.

Once the pet owner understands that a collection agency is involved, the chances of getting payment become significantly high.

To get the best results from a veterinary collection agency, help them help you:

# 1. Transfer your accounts promptly after they become 90 days past due. The older an account gets, the harder it becomes to collect money.

# 2. Do not accept postdated checks, but you may agree to deposit them after a few days ( like on the day when the debtor will get his salary). For any client who pays by check, you must have their driver’s license number written down in your system. This information is beneficial for veterinary debt collection agencies. Deposit the bank check right away on the agreed-upon date. Do not mark the account “Paid In Full” till the check clears. Once a client approaches you to settle his dues, offer multiple ways to accept the payment ( including Paypal).

# 3. Unpaid money from several past-due accounts can quickly add to a significant figure. Keep transferring accounts to a collection agency once it reaches the 90 day past-due mark, do not procrastinate.

# 4. Refuse to service the client until their outstanding balance is settled; otherwise, your accounts receivable will keep growing, and your debt will become harder to collect.

# 5. If your bills have not been cleared even after the full cycle of collection letters has been sent out, give instructions to your collection agency to transfer those accounts for more intensive collections ( Collection calls and eventually a Legal Suit).

You must always get a simple signed contract from pet owners where they accept to pay for the cost of treatment. This document is really helpful for debt collectors. Always ask your collection agency how they ensure your clients’ data will be handled securely.

Check this: Cost of hiring a collection agency

If you need a veterinary debt collection agency to take care of your account receivables: Contact us

Printing and advertising agencies often face overdue accounts receivable because their final invoices are typically issued after the work is completed.

To maintain healthy cash flow, advertising agencies must consistently review overdue accounts and issue invoices promptly. A few clients can quickly accumulate significant unpaid bills, especially if they have hired you for multiple projects at once.

Collection agencies specialize in recovering overdue payments, allowing advertising businesses to focus on their core strengths while serving as a cost-effective extension of their operations.

Need a collection agency: Contact us 

Why do collection agencies achieve much higher recovery rates in the advertising industry?

Collection agencies achieve high recovery rates in the advertising industry due to several key factors, primary one being high credit scores of clients. If the debt is reported to consumer or commercial credit reporting agencies it can have a long term impact for the defaulters.  Strong Contractual Agreements: Advertising services are typically governed by comprehensive contracts that clearly outline payment terms, deliverables, and consequences for non-payment. These legally binding agreements make it easier for collection agencies to enforce debt repayment. Reputational Sensitivity: Companies in the advertising sector are highly conscious of their public image. Negative publicity resulting from unpaid debts can harm their reputation, making them more inclined to settle outstanding obligations promptly. Ongoing Business Relationships: The advertising industry thrives on long-term partnerships and repeat business. Debtors are motivated to maintain good relationships with agencies and vendors to secure future opportunities, encouraging timely debt resolution. High-Value Transactions: Advertising campaigns often involve substantial financial investments. The significant amounts at stake make it worthwhile for creditors to employ collection agencies and for debtors to settle to avoid legal actions or credit repercussions. Clear Documentation: Advertising services are well-documented through contracts, proposals, and delivery receipts. This extensive paperwork provides solid evidence of the debt, reducing the debtor’s ability to dispute claims and facilitating the collection process. Legal Support: The legal framework often supports creditors in enforcing payment for services rendered. Courts typically uphold the terms of advertising contracts, providing a legal avenue for debt recovery if necessary. Credit Dependency: Businesses in the advertising sector often rely on credit to manage cash flow and fund projects. Maintaining a good credit standing is crucial, so debtors are more likely to pay outstanding debts to preserve their access to credit.

Debt Recovery Services

Collection Letters Service

The upfront cost for 5 Collection Letters is about $15 per account.  Debtors pay directly to you, no other fees. Low cost option.  Good for accounts less than 120 days past due.

Collection Calls Service

Contingency fee only. No upfront or other fees.  Agency gets paid a portion of money they recover.  No recovery-No fees. Best for accounts over 120 days. A debt collector calls debtor many times. If everything fails, a possible Legal Suit is recommended by the attorney.

 

Check this: Cost of hiring a collection agency.

 

Dental practices must hire a HIPAA compliant collection agency to recover unpaid patient bills faster and professionally without straining staff or damaging patient relationships.

Unpaid bills are an ongoing issue for nearly all dental practices in the USA. Many patients who get dental procedures do not keep up with their promise of making timely payments. The primary responsibility of dental offices is to treat patients. They cannot recover unpaid bills as effectively as a collection agency.

Need a Dental Collection Agency? Contact Us Serving hundreds of dentists nationwide – HIPAA compliant.

Good collection agencies are user-friendly and flexible, adapting to your specific needs. They should offer you two collection choices –  Fixed-fee collections or Contingency collections.

• The fixed-fee service is an amicable and cost-effective way to collect money. It works best if your invoice is less than 180 days past due.
• Contingency service is more intensive, and recommended for older accounts (more than 180 days old).

Best recovery rates in the industry

What to look when hiring a Dental Collection Agency:

A debt collector should not use the same approach for the healthcare industry as they do for car dealerships or small businesses.

• Have a deep understanding of the delicate nature of the dentist-patient relationship.
• Must protect the reputation of a dental practice by following a friendly collection approach.
• Allow the debtor to make payments in installments if necessary.
• Protection of patient’s data as specified in HIPAA privacy law.
• Adherence to the Federal and State debt collection laws that apply specifically to the medical and dental industry.
• Deliver high recovery rates. Attempt to recover late payment fees or interest if applicable.
• Avoid a firm collection approach if a patient appears to be litigious.
• Any payment reminders sent through SMS might need patient’s authorization.

Cost of Hiring a Dental Collection Agency?

• Fixed-fee collection service costs is about $15 per account, and patients pay directly to you. There is no other fee or commitment. Fixed fee recovery applies just the right amount of pressure without destroying the relationship with your patient.
• For Contingency collections, most agencies charge 40% of the amount collected and remit the remaining 60% to you.

Calculate your losses of Unpaid Patient Bills

Let us assume that a dental practice works on a 25% profit margin. Even if 5% of patients do not pay their dental bills, 20% of your net profit is effectively gone! Collecting money from existing patients is equally important as getting new patients.

According to Bank of America, starting a dental practice costs nearly $475,000. Even though a dental practice usually pays well over time, most profits will erode without a proper accounts receivable plan.

Are you already using a Collection agency, but not satisfied?

Are you getting several patient complaints about unethical collections, or their recovery rate is poor? You are not alone. Does your existing collection agency offer first-party and third-party debt collection service? Do they have the ability to perform insurance follow-up, have a solid customer service support, and secure?

Dentists, Oral surgeons, and Endodontic practices regularly face challenges; these include: 

• Finding new clients.
• Increased competition from other practices.
• Constantly changing regulatory environment.
• The cost of purchasing malpractice insurance keeps going up.
• Ongoing complexity of running a small business smoothly.
• Hiring and retaining well-qualified staff.
• Keeping up to date with new dental procedures.
• Need for equipment and technology.
• Internal staff cannot be rude when collecting past-due patient bills, which may spoil the dental office’s reputation.

A hasty and an overly aggressive approach to recoup money may result in losing patients due to a negative PR, either by word of mouth or via negative online reviews (on Google/ Yelp etc.).

Recent laws regarding medical / dental credit bureau reporting:

Credit reporting agencies have revised their policies regarding medical and dental debt reporting. They will remove any dental debt from records once it is fully paid. They will no longer report dental debts under $500. Moreover, collection agencies are now required to wait for one year before they can credit report any dental debts. In fact, Biden administration stopped credit reporting of medical debts entirely at the end of his term.

Suggested Dental Collection Strategy

Transferring your account after 60 or 90 days of non-payment is highly recommended because as time passes by, it gets harder and harder to recover that money.

Written Demands are an excellent tool to start the collections process as they cost a flat $15 to $20 for a five letters package. Dental collection agencies also perform several “scrubs” for the accuracy and effectiveness of their demands. Expert lawyers craft these written demands, increasing their intensity after every letter.  The involvement of a dental collection agency makes your patient a lot more nervous, and he is more likely to pay off versus when your staff is requesting payments. If the patient still does not pay, you may instruct your collection agency to go for more intensive methods like Collection calls or to file a Legal suit. 

Collection Calls are best suited when a debt is at least 120 days past due. A debt collector patiently explains to your patient the consequences of not paying. Debt collectors may even put your debtor on a monthly payment plan. Depending on your patient’s response, a collector’s tone may vary from amicable to firm.

A debt collector provides various options to settle the debt. There is no upfront cost for the Collection Calls service. Your dental collection agency gets paid only when they collect money for you. This service is also ideal for those practices who do not want to spend money on buying Written Demand accounts.

Finally, a Legal-suit is filed after all other recovery options have failed. The contingency fee is communicated in advance after a lawyer reviews the case. Not all accounts qualify for this step.

Send the bill to your patient right after EOB (Explanation of Benefits) is received from the insurance company, instead of raising demands only once a month

Assigning unpaid bills to the collection agency takes a lot of stress away from your internal staff. Meanwhile, the internal team can concentrate on running and expanding your dental practice.

The physical location of a collection agency does not matter, so stop looking only for a dental collection agency near you. Select a dental collection agency that has a nationwide coverage.

Information about Dental Malpractice Insurance: Types, Cost and Lawsuit Reasons

The assumption that a patient will cease visiting a dental office because their account was sent to collections is unfounded. Building trust with a new dentist takes time, as the dentist-patient relationship is not established overnight. Therefore, it’s important for collection agencies to cultivate a positive rapport with patients. This approach helps in reducing the likelihood of non-payment during subsequent visits to your dental office.

We recover your outstanding patient balances successfully and respectfully, preserving your patient relationships and practice reputation.

Healthcare providers are facing more and more cases where patients don’t pay their medical bills. Medical office staff are frustrated with being forced into part-time debt collectors, as it distracts them from their primary responsibilities.

Our medical collection services will seamlessly integrate with your existing billing process, providing online status reports and eventually depositing the amount recovered directly in your bank account ( using ACH Direct Deposit). 

Need a Medical Collection Agency? Contact Us Serving Thousands of Medical Professionals Nationwide Easy to use • Fully Compliant with HIPAA, Federal and State Laws • USA Citizens-Only Team • 24×7 Secure Portal • High Recovery Rates • Expert Medical Collectors • Free Credit Bureau reporting • Low fee

Why take your unpaid medical bills so seriously?
If a medical practice works on a 20% profit margin, say 3% of its patients do not pay, then effectively 15% of the net profit is gone. Collecting money from existing patients is much more important than getting new patients.

How does a medical collection agency work?
A good collection agency should be willing to tailor their approach to meet your specific needs and help you achieve your debt collection goals. They should offer you the following four options:

 

Fixed Fee Collections ( Amicable tactics)

Step 1 : Send five reminders on your behalf, a process known as first-party collections. At this stage, the account has not yet entered the collections phase. You should assign a patient to this step when their invoice is overdue by 30 to 60 days. If your team is understaffed and you want them to focus on their primary duties, choose the Step-1 service to manage accounts. This approach will save time and energy, reducing the weekly frustration your staff faces when reminding patients to make payments.

Step 2 : Send five formal medical collection notices at regular intervals on their letterhead, a process known as third-party collections, which includes strong legal language. This step represents a significant shift, signaling to the patient that their account is now being handled by a professional medical collection agency. This transition greatly increases the likelihood of payment. Using this assertive yet measured approach usually preserves the integrity of your relationship with patients. Most practices move accounts to this step when they are 60 to 120 days overdue, a strategy that has consistently proven effective.

Cost:

• Step 1 or Step 2 costs about $15 an account ( 5 contacts).
• Step 1 and Step 2 combined service is about $20 per account ( 10 reminders/demands)
• If you buy more accounts, the cost per account goes down further. Unused accounts NEVER expire.

Contingency Fee Collections ( Firm tactics)

Step 3 : (📞) In this service, a professional medical debt collector will call your patient and also conduct skip tracing to find the debtor’s most recent contact information, such as phone numbers and addresses. Collectors are not paid a fixed salary; instead, they earn a percentage of the money they recover, which motivates them to work harder on your behalf. Typically, collection agencies retain 40% of the amount collected and remit the remaining 60% to you.

Step 4: (⚖ ) Uncollected accounts can be further assigned for legal collections (after your written approval). These accounts must be of a minimum dollar value to justify the attorney cost and filing fee.

New laws impacting medical debt collections In November 2021, the CFPB (a government entity) instructed all collection agencies to maintain a detailed breakdown of each account. This includes the initial amount due and any payments made by the patient before the account was assigned for collections. Starting July 1st, 2022, the Credit Bureaus (CB) began removing all medical debts of less than $500 from credit reports. Additionally, CBs now remove all medical debts that have been paid off. They also extended the period before medical debts can be reported, requiring a one-year wait after the delinquency date, compared to the previous six-month period. Newer credit scoring models, such as VantageScore and FICO, now place less emphasis on medical debt, meaning it doesn’t impact credit scores as much as it used to. Collection agencies are required to be compliant with GLBA (data protection laws as of June 8, 2023) and HIPAA regulations. While these laws undoubtedly make recovering medical debt more challenging, they do not prevent collection agencies from obtaining a court judgment against the patient. Therefore, it is crucial to involve a collection agency as soon as possible before it becomes too late. We recommend transferring accounts to a collection agency when the debt is 60 to 120 days past due. October 2024: Many states have stopped medical credit bureau reporting. We may have a federal law soon that may prohibit credit reporting entirely in all states.

How soon can I forward a patient’s account for collection?
You can send a patient for debt collection at any time, per your office’s financial policy. Most medical practices transfer accounts after 60 days. It is advisable to send the patient for collection after determining final insurance coverage. This avoids confusion since the patient’s insurance coverage can differ from what was initially estimated.