Starting a Medical Billing Business > Starting Your Own Medical Billing Business

Collection Agencies

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taxlady28781:
How do you all handle past due collections that are ready to be sent to collection agency?  Do you send it back to the provider for them to contact a collection agency or do you send it on to a collection agency on their behalf?  Any other information/advice you can give on this subject is greatly appreciated.

PMRNC:
My clients get a patient aging report at which time the accounts I flag for further instructions are sent to them and they can send it back to me with what they want done. I flag accounts I think should be sent to collections, payment plan suggestions and accounts I feel are not worthy of any further action (write-off).

dekenn:
At what point do you determine what to write-off?  After how many bills, and what is your cut-off dollar amount?  I know that for a $5.00 missed copay, it's ridiculous to continuously bill and then file small claims, but just curious as to what other people cut it off at???  :-\

PMRNC:
I can't say what "I" would consider to be write-off per Se'  I always have a copy of each client's office policy along with their financial policy, so I am following their policies, which is how it's supposed to be to keep things fair and reasonable.

If I have helped my client with their office / financial policies generally speaking the time frame for write-off's would be 4 billing cycles and one soft collection letter. Consumer laws prohibit providers/debtors from Threatening collections w/out follow-through so I usually have it in writing from the provider that that is what they wish to do for each individual account referred/recommended for collections. I also always use the Mini Miranda on all statements and correspondence.  As for the amount, that will depend on again different situations/amounts by client and taking into account their policy and patient's circumstances.  For example, one of my clients does not seek collection on a patient who has been billed for 4 billing cycles on missed appointments beyond 2. Another client has a $50 threshold to which he will not send to collections and either write it off and/or continue to bill and formerly dismiss the patient.

It really is a good idea to always have every client's office/financial policy in your possession to refer to. Keeps them in compliance and covers your butt as well!

Michele:
If you work with a specific collections agency, they may have a limit on how small they will take.  We had one that wouldn't attempt collections on less than $25.  Not sure if that's common, and we don't work with them, I just thought it might be worth mentioning.

Michele

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