Medical

When talking about the negative side of business, two words strike fear in the minds of both businesses and consumers alike; collection agency. To be a client, or in the medical world, a patient, and hear that you have to deal with a collection agency brings to mind thoughts of aggressive agents and ruined credit. For the companies that use them, the medical practices, you think of a third-party strong-arming your patients and giving your practice a bad name.

This does not have to be the case though. Collection agencies are a necessary part of any business to make sure debts are eventually paid in full and hopefully promptly. Without having a strong accounts receivables process, any business, including medical practices can suffer financially. Working with an ethical, reputable debt collection agency can work out well for both sides when agencies do it the right way. Here is how a good collection agency can help doctors and do right by both their brand and their bottom line.

If you are a doctor and need an ethical debt collection agency to recover your medical debt: Contact us

Federal Compliance

The bare minimum a debt collection agency must do is stay compliant with Federal Fair Debt Collection Practices. When evaluating if a debt collection agency is the right one to work with, you want to make sure they are fully in compliance with both the Consumer Credit Protection Act and the Fair Debt Collection Practices Act.

These federal statutes lay out the groundwork for how a debt collection agency must act and puts in place ground rules about how they can contact debtors when they can contact them, and how they must act when doing so. You can find how agencies measure up in these areas by checking places like the Better Business Bureau.

HIPPA and Data Security 

As part of these federal mandates, debt collection agencies have a responsibility to keep debtors’ information private and secure. Data provided by doctors and hospitals can have personal information including SSN, DOB and other sensitive information. When collecting debts in the medical field, this becomes even more important due to the Health Insurance Portability and Accountability Act (HIPPA). As everyone in the medical profession knows well, HIPPA states that all Personally Identifiable Information must be protected from fraud, theft, and any other means of being made public.

Just like medical professionals, medical debt collectors must be aware of and compliant with HIPPA and they must convey to the doctors regarding this. A reputable medical debt agency will know that they must sign a HIPAA Business Associate Agreement to agree that they will comply with HIPAA regulations. They also must know that they do not need most Personal Identifiable Information unless it is specifically part of the debt for some reason. Working with a debt collection firm who knows how to operate under HIPPA regulations is key because if too much info gets passed along or used, that can be used against both the collector and the practice and could result in major problems for both.

Dealing with Insurance Companies 

Medical debt collection agencies are not just about going after unpaid patient debt though. Doctors often have a nightmare dealing with insurance companies and getting the claim processed on time. A good medical debt collection agency can also help a practice deal with insurance companies during times that they are being difficult to deal with. Using the same skills that they use to settle debts with patients amicably and professionally, these companies can also do things for a practice such as assisting doctors and back-end personnel with insurance follow-up. The good medical debt collection agencies have even been known to coerce insurance companies into processing claims quicker than they usually do.

Insurance companies are legally liable to respond within a few weeks after a collection letter is received. Collection agency will not generally make phone calls to an insurance company.

Using medical debt collection agencies to work with insurance companies instead of, or in conjunction with, patients is a good idea for medical practices. This is because the insurance companies are the ones with the deep pockets and you are more likely to get paid in full from them. And two, many times a patient’s bill ending up in collections is not their fault, they (rightly in many cases) thought insurance had covered it. Going after the insurance company and helping solve a problem for a patient instead of going after then will be good for your reputation and strengthen your reputation.

Conclusion 

A collection agency does not have to be a bad thing. When doctors are working with the right one and utilizing them in the right way will help your practice’s financial health and allow you to get paid in full in the right way, without damaging valuable patient relationships.

Hiring a Medical Collection Agency near you has no benefits.

A debt collector does not personally go to collect money from your patients, therefore it is immaterial if a patient receives Collection Calls or Letters that have originated from your own city or somewhere from California or New Jersey.

In fact if you are limiting your search of a Collection Agency located near you, most likely you are missing out on hiring a Collection Agency that could have recovered a lot more money from your patients.

When you need to hire a plumber or a cleaner you go local, but do you know from which city do your monthly Electric or Phone statements are generated. Do you know from which city of America do you get a phone call regarding your Bank Account or regarding your upcoming Flight Status? Do you even care? Debt collection is one of the activities where the physical location of the agency really does not matter. 

Medical Collections is very tricky, the agency handling your accounts receivable should clearly understand the delicate nature of the doctor-patient relationship. Collections should be made in a diplomatic, systematic and amicable manner, in an attempt to preserve the doctor-patient relationship.

Important requirement – Your medical collection agency should be licensed to collect in your state, and apart from English speaking collectors, they should have Spanish speaking debt collectors as well.

If all direct collection efforts fail and a lawsuit is advisable, then nearly all Collection Agencies have a nationwide network of experienced lawyers in pretty much every city of America. It is a part of their standard collections process. The contingency fee is disclosed in advance depending on the complexity of the case.

All medical collection agencies are required to follow all federal and state laws like the Fair Debt Collection Practices Act (FDCPA), Fair Credit Reporting Act (FCRA), Telephone Consumer Protection Act (TCPA) and Health Insurance Portability and Accountability Act (HIPAA) guidelines.

Apart from a higher recovery rate, ask if the collection agency has a secure online portal where you could submit new accounts, run reports and stop the recovery process of an account where a payment has been received. Are their call centers located in USA or in a foreign country? What steps do they take to protect the personal data of your patients and if they have any 3rd party security certificates to prove that.

Bottom-line, if you are looking for a “Medical Collection Agency near me“, you will likely miss hiring the best debt collection agency in the medical field. 

In Medical Collections, demand letters sent by a Collection Agency are extremely effective and a low-cost solution. Ask your medical collection agency if they offer Collection Letters service or not, they cost roughly $15 an account. Best suited for accounts less than 120 days past due.

Medical collections are relatively more prone to legal action from aggravated patients. To protect your medical practice from running into these lawsuits, your Collection should perform a Litigious Patient check. It means if the patient has a history of suing Small Businesses or Medical Practices then the agency should appropriately advise you. Moreover, the agency should be fully insured to protect them-self and your practice in case a lawsuit is filed by a patient.

It is advisable to transfer an account to collections if a patient has not cleared their medical bill within 60 to 90 days and your own staff has not been successful to recover money during this time-frame. Most collection agencies will do intensive medical collections or report to credit bureaus only after 180 days due to various federal and state laws.

Looking for a medical collection agency? Contact us

Additional reading: Artificial Intelligence in Debt Collection. Can AI make it smarter and easier?

Medical malpractice insurance covers a hospital against instances where death or great harm are caused. Malpractice insurance is often available through traditional insurance carriers. Before selecting which insurance is best for your firm, it is highly advised to consult a professional medical insurance consultant or institutional risk manager to discuss options. You should also check to see if the state/country of the said hospital has a minimum carrying requirement. In the USA, more and more states are requiring the hospitals have some sort of coverage against this occurrence. There are several different types of malpractice insurance with varying costs. The two most common types of Medical Malpractice Insurance are Claims-Made and Occurrence, but there are a few more that pop up for specific scenarios.

Claims-Made Insurance

Claims-made insurance covers policy holders for alleged acts of malpractice that take place and are reported during the time that the policy is active. This policy will not cover any incidents that are reported after the claims-made policy has expired. These policies tend to have little activity when they are first enacted because claims are often not filed directly after an incident.

Since there is such a long period of time between incidents and reports, there is bound to be some margin of error if the said hospital was to switch malpractice insurance. For instance, if a patient dies in a hospital that is covered under claims-made insurance and is reported after switching to another insurance, then that instance is not covered. To compensate for this said hospital might want to purchase Tail Coverage or Nose Coverage in addition to their new insurance.

An advantage of claims-made insurance is that it is often the most cost-efficient option. They are also advantageous in that you can ensure the risks from services you have provided in the past; meaning you can adjust your policy limits and deductibles to meet inflation. On the other hand, these policies tend to be complex and difficult to work with.

Tail Coverage

If one chooses to cancel their claims-made policy or switch to another insurance there will be an uncovered period of time where you are not covered. Tail coverage covers a firm from any incident that is not been filed until after said claims-made policy is no longer covered. This only applies to claims-made policies and not occurrence policies.

Tail Coverage will protect your prior acts even after you cancel your claims-made insurance. The cost for tail coverage can be difficult to pinpoint, so it is best to discuss it with a professional medical insurance consultant before making a decision. Typically, insurers will charge a fixed percentage of your professional liability insurance policy cost; this is often somewhere between 100-300% of your final premium. Keep in mind that tail coverage tends to cost more depending on how far back the incident goes. The cost of tail insurance can go up to twice the typical malpractice premium.

Nose Coverage

When you set up claims-made insurance, the first date of coverage is called the retroactive date. This date excludes you from any claims that happen before it. Nose Coverage, or Prior Acts Coverage, is coverage that allows you to change your retroactive date to the start date of your new coverage. Nose coverage provides protection for instances prior to your past policy. Tail coverage only applies to your incidents that happened when you were covered, yet was filed after your coverage expired. It is important to remember this distinction when changing insurances.

Occurrence Insurance

Occurrence coverage will cover you any time after the policy has been enacted. If an incident was to happen during the policy, it will still be covered if reported after the policy is retired. Likewise, there is no need for things like tail insurance, since future is always covered from past mistakes. There is also no need for prior acts coverage is needed when changing insurance.

Occurrence seems like the optimal policy to go with, but it is not frequently offered by employers. In addition to that, occurrence policies are often more expensive than claims-made insurance. Cost tends to not be a huge issue when selecting insurance, it is more so what works best for your business.

Cost of Malpractice Insurance

It is difficult to say what the cost of your insurance will be without getting a quote. It is crucial to discuss payment options with a professional medical insurance advisor prior to making a decision involving a new medical malpractice policy. There are many variables that will influence your rates, such as insurance type, location, practice, number of employees, and liability. For example, on average malpractice insurance can be approximately $13,000 in Minnesota, but it would cost over $22,000 in California, Surgeons tend to pay more because they have more liability than the average dentist; a surgeon has a higher risk of incident. In addition, occurrence insurance is far more expensive than claims-made. This might be because occurrence must cover a wider timeframe. The typical malpractice insurance will range anywhere between $5,000 to $20,000 annually.

Sources used
https://www.acponline.org/about-acp/about-internal-medicine/career-paths/residency-career-counseling/guidance/medical-malpractice-insurance
https://www.eqgroup.com/occurrence_claimsmade_explained/
https://www.gallaghermalpractice.com/blog/post/going-bare-are-doctors-required-to-have-malpractice-insurance
http://www.camedicalmalpractice.net/purchasing.htm
https://www.trustinsurance.com/resources/articles/malpractice-insurance-101-claims-made-vs-occurrence-coverage
https://www.insureon.com/insurance-glossary/tail-coverage
https://www.insureon.com/insurance-glossary/nose-coverage

Having a Medical Collection Agency near you has no advantages.

A debt collector does not personally go to collect money from your patients, therefore it is immaterial if a patient receives Collection Calls or Letters that have originated from your own city or somewhere from California or New Jersey.

In-fact if you are limiting your search of a Collection Agency located near you, most likely you are missing out on hiring a Collection Agency that could have recovered a lot more money from your patients.

When you need to hire a plumber or a cleaner you go local, but do you know from which city do your monthly Electric or Phone statements are generated. Do you know from which city of America do you get a phone call regarding your Bank Account or regarding your upcoming Flight Status. Do you even care? Debt collection is one of the activity where physical location of the agency really does not matter. 

Medical Collections is very tricky, the agency handling your accounts receivable should clearly understand the delicate nature of doctor-patient relationship. Collections should be made in a diplomatic, systematic and amicable manner, in an attempt to preserve the doctor-patient relationship.

Important requirement – Your medical collection agency should be licenced to collect in your state, and apart from English speaking collectors, they should have Spanish speaking debt collectors as well.

If all direct collection efforts fail and a lawsuit is advisable, then nearly all Collection Agencies have a nationwide network of experienced lawyers in pretty much every city of America. It is a part of their standard collections process. Contingency fees is disclosed in advance depending on the complexity of the case.

All medical collection agencies are required to follow all federal and state laws like the Fair Debt Collection Practices Act (FDCPA), Fair Credit Reporting Act (FCRA), Telephone Consumer Protection Act (TCPA) and Health Insurance Portability and Accountability Act (HIPAA) guidelines.

Apart from a higher recovery rate, ask if the collection agency has an online portal where you could submit new accounts, run reports and stop the recovery process of an account where a payment has been received. Are their call centers located in USA or in a foreign country. What all steps do they take to protect the personal data of your patients and if they have any 3rd party security certificates to prove that.

Bottom-line, if you are looking for a “Medical Collection Agency near me“, you will likely miss hiring the best debt collection agency in medical field. 

In Medical Collections, demand letters sent by a Collection Agency are extremely effective and a low cost solution. Ask your collection agency if they offer Collection Letters service or not, they cost roughly $15 an account. Best suited for accounts less than 120 days past due.

Medical collections are relatively more prone to legal action from aggravated patients. To protect your medical practice from running into these lawsuits, your Collection should perform Litigious Patient check. It means if the patient has a history of suing Small Businesses or Medical Practices then the agency should appropriately advice you. Moreover, the agency should be fully insured to protect them-self and your practice in case a lawsuit is filed by a patient.

It is advisable to transfer an account to collections if a patient has not cleared their medical bill within 60 to 90 days and your own staff has not been successful to recover money during this time-frame.

Looking for a medical collection agency? Contact us.