Debt Recovery

Managing overdue payments can be a challenging aspect of running a veterinary practice. When pet owners delay payments, it impacts your cash flow, potentially hindering your ability to maintain high-quality care. Implementing effective debt recovery strategies is crucial for the financial health of your veterinary clinic.

Understanding the Importance of Timely Collections

Veterinary practices commonly face delayed payments because pet owners may prioritize other expenses, assuming there’s no immediate consequence. However, delayed collections can quickly snowball into significant financial setbacks. For example, a clinic with just five overdue accounts, each averaging $500, will find itself short $2,500, money that could have been invested in advanced equipment or training for your staff.

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

Strategies for Efficient Veterinary Debt Recovery

1. Clear Payment Policies: Clearly communicate payment policies upfront. Providing written policies during the initial visit ensures clients understand their payment obligations.
2. Payment Options and Plans: Offering flexible payment solutions like installments or third-party financing through services such as CareCredit can significantly reduce delinquency rates.
3. Consistent Follow-Up: Regular reminders through mail, email, and phone calls can encourage prompt payment. For instance, gentle email reminders every 10 days can help nudge clients without straining the relationship.
4. Automated Billing Solutions: Implementing automated billing and reminders through practice management software reduces administrative burden and human error, streamlining your collections process.

When to Hire a Collection Agency

If accounts remain unpaid after 60-90 days despite your internal efforts, partnering with a professional debt collection agency becomes prudent. Agencies specializing in veterinary debt recovery understand industry sensitivities and maintain respectful yet effective communication.

For example, an agency might use soft reminders initially, gradually increasing urgency without compromising client relationships. Collection agencies typically offer contingency-based services, charging fees only upon successful recovery, which makes them financially appealing and risk-free.

Legal Considerations

Always ensure your collection processes comply with the Fair Debt Collection Practices Act (FDCPA). Avoid aggressive tactics, and clearly document all communication and agreements to protect your practice legally. Violations can lead to hefty fines or lawsuits, damaging your reputation.

Preventative Measures

• Require Deposits for High-Cost Procedures: Requiring an initial deposit for costly treatments like surgeries or extended hospital stays can significantly reduce your risk of non-payment.
• Credit Checks for Major Services: Conducting credit checks for extensive treatments can help identify potential payment risks upfront.

Real-Life Scenario

Consider Dr. James, who runs a mid-sized veterinary practice. He began using automated billing reminders and flexible payment plans. Within three months, his overdue payments dropped by 35%. For stubborn cases, he partnered with a professional debt recovery service, successfully recovering 80% of outstanding amounts, significantly boosting his clinic’s revenue and reducing stress.

Conclusion

Effective debt management strategies are crucial to maintaining a healthy veterinary practice. By clearly communicating payment expectations, offering flexible solutions, and partnering with a reputable collection agency when needed, you safeguard your practice’s financial health and ensure sustained quality care for pets.

 

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?

On average, our dental clients recover 30–40% more than practices that attempt in-house collections alone, and far more than our competitors.

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 unpaid patient balances quickly and professionally—while protecting your reputation and keeping patient relationships intact. With over 50% of our clients coming from the medical and dental fields, we are true specialists in the healthcare industry.

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.

 

Most customers who start missing their auto-loan installments are likely going through a very rough financial situation. Unless a car dealership (or an auto loan lender) acts fast, there is little hope of recouping the missed payments.

The involvement of a collection agency is a game-changer. Collection agencies are known to take recovery efforts to a completely different level. Their persistence, tactics, and incremental debt collection intensity ensures that your invoice becomes the debtor’s priority. All his other payment obligations become secondary.

Recovering Car Loans Nationwide Need a Collection Agency for Unpaid Auto Loans? Contact Us

The biggest downside of waiting is that the asset’s value (car) depreciates if a lender or a car dealer waits too long. In other words, forget about getting the interest and late fees. If the lender waits too long, he may be unable to recover the principal amount.

A record 7 million Americans are three months behind on their car payments. Their non-payment could be because of the loss of regular income or mismanagement of personal finances. There could be other circumstances like a sudden medical emergency due to the borrower’s cash reserves being depleted or even a personal issue like divorce.

Americans who fall behind these payments are generally those with low credit ratings. Individuals with low credit scores often take sub-prime auto loans with high-interest rates. But many defaults are from customers who we thought were financially well off or those with a stellar credit history. Somehow they landed up buying a vehicle that was beyond their means.

Once a customer stops making payments, starts giving doubtful excuses, or starts to ignore your payment reminders, it is important to involve a debt collections agency quickly to resolve these accounts.

It is recommended to contact a collection agency if the last installment has been more than 60 days past due. The involvement of a collection agency is a game-changer. They are experts in collecting past-due debts. The longer you wait, the harder it will get to recover your money.

Before hiring a collection agency, check if it is licensed and bonded in those states where your debtors are located. The agency should have both Consumer and Commercial debt collection divisions. The same collection agency can pursue all situations if your debtor is a person or a business (ex: company lease).

The collection agency will approach the cosigner for payments if the primary signer cannot pay.

If a debtor ignores payment repeatedly, then his credit score and FICO score start to drop, and in many cases, his car can be repossessed (well, in most states).

A collection agency can even go to court and garnish wages each month from the debtor’s paycheck.

The average transaction price for light vehicles in the United States was $37,577 in December 2018 as per kbb.com. About 4.7% of auto loans and leases were over 90 days delinquent in early 2019.

Many analysts have been forecasting that an economic recession may not be too far off. Therefore it is advisable to act promptly.

Summary of Collection Agency’s Services

Collection Letters Service

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. It’s best for accounts over 120 days past-due. A debt collector calls the debtor many times. If everything fails, a possible Legal Suit if recommended by the attorney.

Check this page >> Cost of Hiring a Debt Collections Agency

If you are looking for a good collection agency, we can help you. Contact us if you are interested in finding out more.