Medical professionals’ primary concern is providing quality care to patients. However, reducing overhead expenses and increasing practice revenue are not far behind on their list of priorities. For many organizations, working with a billing service or medical collection agency is one way to ensure that those goals are met. This is due to the fact that experienced revenue cycle partners have the potential to collect more money for a fraction of the cost it takes to do collections in-house.
What do I need to know about working with a collection agency?
- Price: Billing and collections services make most of their money on commission. Companies will typically charge a base rate, but they will also keep a percentage of everything they are able to collect from patients. Keep in mind that if the collector charges a high base rate and receives a low commission, they may not be as motivated to bring in more money.
- Method: Medical collection agencies use traditional collection methods such as mailing out letters and contacting patients by phone. However, they are generally more effective than in-house collectors. This is due to the tactics they use, the frequency with which they are able to follow-up with patients, and the software solutions at their disposal. Skip tracing software, for example, allows collectors to locate patients for whom you have incorrect or outdated contact information.
What should I find out before selecting a medical collections service?
Outsourcing your practice’s collections processes can significantly increase your organization’s revenue. However, it is important to remember that not all collection agencies are alike – and some services might not be a good fit for your practice. Before making any final decisions, find out where the company is located. It probably won’t make a difference whether the company is located on one side of the country or the other, as collectors will either be communicating with patients through letters or by phone. It is a good idea, however, to avoid offshore call centers whose collectors do not speak English as their first language.
Although there are many advantages to working with revenue cycle partners for medical collections, it is important to keep in mind that not all collections companies will be a good solution for your practice’s collections. You will want to work with a medical collection agency that has experience with your medical specialty and type of practice.