• Doctors CFO

What is the Role of a Collection Agency?

Updated: Oct 25, 2019


In our last article, we made recommendations on how to monitor your billing company or internal billing clerk. We suggest that the owner not be completely removed from the billing process and advocate that they monitor AR days, Collection Percentage, Write-Offs, Adjustment Percentage, Date of Service Collections, and use an external CFO analysis as ways to oversee the billing system. Our poll questions asked if the owner approved all write-offs. Forty-three percent said "Yes', and 57% said 'No'.

Unfortunately, not all medical or dental bills incurred are paid in full by the patient and/or their insurance provider. Failing to collect at time of service, poor communication regarding the estimate of the patient portion, and failure to follow up on denied or unpaid insurance claims are among the top reasons that accounts go past due. Should an account turn into bad debt, it may need to be charged off to a collection agency. A collection agency should secure payment without overly jeopardizing your relationship with the patient and damaging your name in the community.


Roles of a Collection Agency:

Collect Bad Debt in a Timely Fashion

  • Contact patient verbally and in writing without threatening patient relation with healthcare provider.

  • Follow HIPPA Regulations.

  • Know debt collection laws in all 50 states in case the patient relocates.

Provide Guidance on Best Bad Debt Policy

  • Patient must sign financial responsibility statement.

  • Typically 30-120 days, however best range is 60-90 days.

  • Office needs to stick to guidelines in every situation so that it becomes a routine process.

  • Send written notification on debt to patient including amount, original creditor (practice name), and statements of rights.

Provide Monthly Reports to Practice Owner

  • These reports should include account name, amount, aging, activity and status of account.

  • This will help with to track and update accounts.

  • Return Bad Accounts to Practice After a Specified Period

  • If payment is not secured within 1 year of charge-off, account should be returned to office.

Assist with Reporting to Credit Bureaus

  • Accuracy of patient information should be verified.

  • Fees must be assessed and paid.

Share Bad Debt Information with Other Clients if Granted Permission to do so.

  • By sharing bad payer information with others, businesses can make an informed decision about doing business with that person.

  • Even if they do decide to work with that individual, they can gently remind them that they have a debt with another doctor.

Ideally medical and dental bills will be paid in full, but many times this does not happen for a variety of reasons. The longer the bill goes unpaid, the harder it is to collect. When an account goes 60-90 days past due, we recommend sending the account to a collections agency. This is because the office staff does not have the resources or time to spend collecting bad debt. As long as the collection agency is completing the above recommended tasks, they should be hired to collect your practice's bad debt.

To participate in this week's poll "When do you Send Past Due Accounts to Collections?", please subscribe or visit our Instagram or Facebook Page.

The reason we are publishing these articles is so that your office can increase its success. We appreciate your feedback on how we can help you more and love it when you pass these articles along to other practice owners and office managers. If you have a question that you would like answers to in a blog post, please email it to info@drcfo.com. If you have not signed up for our blog, please do, so you can continue to receive these important insights and participate in our weekly polls.

Doctors CFO has a CFO Management tool to help you track your KPIs. You might also be interested in our New Patient Tracking Solution and a Salary Planning Solution, to see these and other products please go to please go to https://www.drcfo.com/shop.

Developing a management report is not easy and Doctors CFO currently has a robust model for most practice types that is customized for our monthly and bi-monthly clients. If you have questions on how this model applies to your practice or you are interested in applying the Doctors CFO model in your practice, via one of our annual, bi-monthly or monthly assessments, please reach out to us as info@drcfo.com. Doctors CFO provides financial analysis and valuations for doctors and dentists in the United States. We also offer programs for new patient marketing, revenue and collection management, medical practice consultant, dental consultant, and practice analysis.

(c) 2019 Doctors CFO, All Rights Reserved

#managementreporting #practicemacros #kpis #medicalkpi #budget


private practice consulting management consulting private practice consulting for doctors and dentists new patient acquisition new patients managing medical staff managing dental staff helping managing staff increasing patient revenue profitable practice increase practice revenue practice revenue get more patients practice growth management reporting medical KPI healthcare ROI practice manager practice analysis medical cfo medical consulting healthcare consulting medical office management practice management medical staff front office clinic management top dental consultants top medical consultants salary planning extend knowledge business specialist what do you struggle with new patients practice valuation business valuation equipment amortization equipment ROI equipment planning how to make more money in a practice Do private practice doctors make more money? How much does a private practice make? high impact healthcare consulting nexus medical consulting new jersey medical consulting axiom medical consulting orchard medical consulting medical coding outsourcing employers dental services dental clinics chicago medical billing and coding jobs near me emergency dental services near me medical billing specialist salary emergency dental services dental clinics north free dental clinics free dental clinics near me counseling private practice business plan medical practice consultant medical consulting jobs ohsu dental clinics dental services group medical billing and coding salary per hour medical billing jobs near me aps medical billing remote medical billing jobs starting a private practice in counseling private practice therapist medical consulting medical billing specialist private practice therapy how to start a counseling private practice how to start a private practice starting a private practice kareo medical billing private practice counseling american medical billing association medical billing jobs how much does it cost to start a medical practice start a private practice medical billing resume peak dental services medical billing and coding certificate dental clinics how much do therapists make medical billing salary medical billing and coding jobs start a medical billing company private practices near me medical billing from home how to be a good therapist start a medical practice dental services near me medical billing and coding online courses cost medical billing and coding pay medical billing and coding job description medical billing and coding classes pacific dental services locations medical billing denial codes and reasons medical billing and coding from home medical billing jobs from home accredited medical billing and coding schools online with financial aid medical billing and coding salary by state dentures and dental services work from home medical billing how to be a therapist medical billing and coding jobs from home how to become a therapist medical billing outsourcing free dental services for adults medical billing coding salaries medical billing and coding programs medical billing and coding online courses free medical billing and coding schools near me medical billing and coding salary medical consulting firm top medical billing company medical billing software dental health services what is medical billing medical billing training top accredited online medical billing and coding schools dental clinics for low income families dental clinics near me accredited medical billing and coding schools local free dental clinics medical billing and coding classes near me epic medical billing meaningful use in healthcare medical billing services low cost dental clinics near me free dental services medical billing classes accredited medical billing and coding schools online medical billing advocate medical billing certification what is medical billing and coding free emergency dental services medical billing and coding school medical billing company medical billing company medical billing and coding schools medical billing companies meaningful use healthcare

0 views

Follow

  • White RSS Icon
  • White YouTube Icon
  • White Instagram Icon
  • White LinkedIn Icon
  • White Facebook Icon

Contact

611 Wilson Ave, Suite 7, Pocatello, ID 83201, USA

©2019 by Doctors CFO LLC, All Rights Reserved.