It Worth The Risk Patient Collections

Patient Collections - Is It Worth The Risk?

Research has shown that a patient that gets sent to collections is 70% more likely to leave the practice than a patient who was not sent to collections. If a non-paying patient does not return to the practice, no revenue is lost. However, if a paying patient is mistakenly sent to collections, the cost of that patient leaving the practice will be felt.

• Annual Average Patient Billing $ 2,500 
• Average Patient Life Span with Practice 7 years 
• Lifetime Dollar Value of Each Patient $17,500 

Since 37% of patient statements initially sent are inaccurate, and more than half the patients wrongfully sent to collections stated they never received a statement; does it ever make sense to turn patient accounts over to collections.

The answer is YES. However, before any accounts are sent to collections, it is wise to first make sure they go through a comprehensive pre-collection process including the following:
Statements are sent
Questions on the account are satisfactorily answered
Incorrect balances are fixed
Posting errors are remedied
New insurance information is updated
Secondary insurance is filed
Effort was made to locate the patient
Effort was made to inform the patient
Once these steps have been taken, unpaid patient accounts can safely be sent to collections. To further mitigate the risk, when choosing a collection agency, make sure that:
The agency specializes in medical collections and doesn't use aggressive tactics. It is imperative that your collection partner understands the nuances of the medical industry. You do not want to use a vendor who is calling on gym memberships one minute and calling your patients the next. Medical bills are not only financial but emotional for most patients. Therefore, these patients must be handled with kindness and respect.
The agency provides you with 100% visibility. If they aren't showing it, they most likely aren't doing it. Demand complete access to view the status of your accounts at any time so that you are fully aware of how they are being worked.
The agency records all phone calls. How else are you going to really know "what" they are saying to your patients and "how" they are saying it? You should be able to request any phone call at your discretion.
The agency provides a convenient on-line way for patients to pay. The more options given, the more likely patients are to pay.
The agency comes highly recommended. The agency should be able to provide endorsements from other medical providers.

Following these guidelines will increase the success of sending patients to collections without repercussions.