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

A client who can't (or won't) pay

(1/3) > >>

williamportor:
Hello- I have a Chiropractor client that I've done billing for about 6 months. Things have been going smoothly until about 6 weeks ago when his monthly check stopped arriving. I called him and he apologized, and said he could not pay because his "numbers were down, and he could not afford it." He has agreed to take over his own billing for now, and said he would try to get the account paid in the next 60 days. He is now 45 days delinquent. Our contract states:

Westside will close its books for billing purposes on the last day of each
month, and will bill Client for it's services on the 5th business day of each month
for the previous months billing. The Client will pay Westside for it's services
upon receipt of Westside’s  invoice. If Client fails to submit payment within
30 business days of receipt of invoice, Client will be responsible for paying
Westside, in addition to the principal amount billed, a 1% per month late charge
for each month or any portion thereof payment of the billing is late.

My question is: How long should I carry this debt before taking action, such as sending it to a collector? Were only talking about $300.00, but I'm not sure what my policy should be regarding delinquent accounts. Any suggestions?

kristin:
So at this point, he should have been charged the 1% late charge, but I doubt that will help him pay you faster. You could offer to take that fee off, if he pays you immediately, or you could offer him a payment plan, with the understanding that if he misses a payment, you will immediately turn his account over to a collection agency, or take him to court. Your contract really needs to spell out what happens to delinquent accounts, going forward. Sure, you have that late fee in the contract, but it also needs to specify what happens if a client goes past X months/days of non-payment. Only you can decide what X should be. Personally, I wouldn't let it be more than 60 days.

PMRNC:

--- Quote ---Hello- I have a Chiropractor client that I've done billing for about 6 months. Things have been going smoothly until about 6 weeks ago when his monthly check stopped arriving. I called him and he apologized, and said he could not pay because his "numbers were down, and he could not afford it." He has agreed to take over his own billing for now, and said he would try to get the account paid in the next 60 days. He is now 45 days delinquent. Our contract states:

Westside will close its books for billing purposes on the last day of each
month, and will bill Client for it's services on the 5th business day of each month
for the previous months billing. The Client will pay Westside for it's services
upon receipt of Westside’s  invoice. If Client fails to submit payment within
30 business days of receipt of invoice, Client will be responsible for paying
Westside, in addition to the principal amount billed, a 1% per month late charge
for each month or any portion thereof payment of the billing is late.

My question is: How long should I carry this debt
--- End quote ---


I'm GUESSING you were charging on a %.. ? This is just one more reason I can't stand charging a %.. the whole BS concept "We don't get paid until you get paid" is so tired and abused.

With that said, I'd already say they breached.. I would go for small claims or send one final letter via certified mail/return receipt with the promise to attempt further collections (with FDCPA, you don't want to threaten actions you won't take so you keep it vague unless prepared to follow through with specific action.

williamportor:
I'm GUESSING you were charging on a %.. ? This is just one more reason I can't stand charging a %.. the whole BS concept "We don't get paid until you get paid" is so tired and abused.

Hello....I charge a flat monthly fee for my billing services, not a percentage. The 1% only applies to the late fee. Sorry for the confusion.

PMRNC:

--- Quote ---.I charge a flat monthly fee for my billing services, not a percentage. The 1% only applies to the late fee. Sorry for the confusion.
--- End quote ---

That's good because the clock ticks at just that total amount (including the 1%)..
When he "agreed" he would take over his own billing did he notify you to terminate the contract in writing? Do you have terms in your contract about terminating contract with a specific means of notification (in writing, certified mail, etc)?  If so and he has not notified you properly you can indeed already consider the contract breached.   Is the amount low enough to go through your small claims but high enough to absorb the small costs of small claims?   When did the "next 60 days promise of payment begin?"


.
--- Quote --- I called him and he apologized, and said he could not pay because his "numbers were down, and he could not afford it." He has agreed to take over his own billing for now, and said he would try to get the account paid in the next 60 days. He is now 45 days delinquent. Our contract states:

Westside will close its books for billing purposes on the last day of each
month, and will bill Client for it's services on the 5th business day of each month
for the previous months billing. The Client will pay Westside for it's services
upon receipt of Westside’s  invoice. If Client fails to submit payment within
30 business days of receipt of invoice, Client will be responsible for paying
Westside, in addition to the principal amount billed, a 1% per month late charge
for each month or any portion thereof payment of the billing is late.

My question is: How long should I carry this debt
--- End quote ---

Navigation

[0] Message Index

[#] Next page