Medical Billing Forum

Starting a Medical Billing Business => Starting Your Own Medical Billing Business => Topic started by: TammyL on March 07, 2016, 11:20:58 AM

Title: Collections
Post by: TammyL on March 07, 2016, 11:20:58 AM
I have a client whose patient collection is over $100,000 should I give the patient a phone call first or just send a collection letter and if they do not respond on the next billing cycle turn over to collections.
Title: Re: Collections
Post by: RichardP on March 07, 2016, 01:59:35 PM
I have a client whose patient collection is over ...

Are your client's Accounts Receivable over $100,000?  Or does your client have a patient whose outstanding balance is over $100,000?  It is not clear from your question.

Some rhetorical questions for you, the answers to which should help your client decide what to do.

If the patient's balance is over $100,000, for how long has it been this high?  Are they making payments?  How many patient statements have you sent them since this balance began accumulating?  How many times have you called them directly about their outstanding balance?

But - most of all - what does your client want to do about this?  That is probably the most important question.

We send out 3 patient statements and make 2 phone calls over the course of three months.  Mid-way through the fourth month, if we have received no response from the customer, we submit the facts about that patient's account to our client.  The client decides what he wants to do.  If he wants to turn them over to collections, we send a fourth statement - colored differently than normal statements - stating that if payment is not received within a specified number of days, we will turn the account over to collections.

If a patient is making payments, we do not consider them for collections.

Title: Re: Collections
Post by: TammyL on March 10, 2016, 02:03:27 AM
Thanks Richard for your advice the client $100,000 in A/R is patient collections for the practice
Title: Re: Collections
Post by: kristin on March 12, 2016, 06:54:42 PM
That is an abnormally high A/R, and there could be several reasons for it, which may influence what methods you take to do collections on it.

First, if this client doesn't have a patient financial policy in place, they clearly need one, immediately.
Next, have all the patients been being sent statements regularly? If so, what Richard said is a great way to handle those who have been billed, and are just not paying. It is very similar to how we do collections at our office.
Finally, if for whatever reason patients have NOT been being sent statements, you have to bill them before doing anything else, and give them a chance to pay.

Good luck!  :)
Title: Re: Collections
Post by: TammyL on March 22, 2016, 12:37:02 PM
A lot is deductibles and ncns/lc 50.00 everytime they miss we check benefits so they know what to collect up front
Title: Re: Collections
Post by: PMRNC on March 22, 2016, 01:43:43 PM
But if that's mostly your 100K collection problem you have a HUGE problem with the front office staff, it means they are NOT collecting NEARLY a third of what they should be collecting. Sounds like in addition to working collections, this office could use some front end staff training!!