It’s a common misconception that the American health care industry is making money hand over first during the COVID-19 pandemic. On the contrary, the American health care industry has suffered significant shortfalls, and many clinics and hospitals have been forced to close with over $200 billion in losses.
The COVID-19 pandemic has filled hospitals beyond capacity and forced them to cancel elective procedures, like joint replacements, tumor removals, and cardiac surgeries, which make up nearly half of a hospital’s revenue.
What’s more, the high level of unemployment rates has resulted in more invoices going to collections.
Ethical Medical Collection Agencies
Of course, hospitals need to recover their revenue in order to meet their operational costs. Here, many turn to debt collection agencies with ethical medical collection solutions to recover payments from former patients the right way.
Aside from taking a principled approach to debt collection, good medical debt collection agencies have many of the following characteristics:
- They have experience working with hospitals, clinics, and other health care organizations.
- They offer complete HIPAA-compliance to preserve the security and privacy of patient data.
- They carry a no-complaint policy.
- Their staff is experienced, knowledgeable, licensed, professional, and empathetic.
- Complete transparency through progress reports.
- A + rating from the Better Business Bureau (BBB).
- They have affiliations with reputable medical associations for a unique insight into the debt recovery demands during the COVID-19 pandemic.
- They carry testimonials from health care professionals and patients about the agency’s diplomatic and compassionate approach.
Many hospitals and clinics are outsourcing all their collection need to debt recovery agencies that can represent them professionally with zero patient complaints. Here are some pre-collection services that medical recovery agencies offer:
- Patient billing
- Telephone follow-ups
- Insurance follow-ups
- Patient Q&A
By outsourcing their busy-work to competent professionals who convert unpaid invoices into cash for a living, the health care industry can concentrate on patient care, finding efficiencies, and finding ways to survive during the pandemic.
What Is the Statute of Limitations on Medical Debt?
All types of debt, including medical, has a statute of limitations. The statute depends on the nature of the debt and local state laws and can range from three to ten years. Once the statute has been surpassed, a health care facility can’t take further legal action over the debt. That being said, a health care organization can still contact the patient about the debt, even after the statute has been exceeded.
Usually, there’s no need to pursue legal action over medical debt. Most patients want to pay their dues and simply victims of circumstance. Many are willing to cooperate with debtors and debt collection agencies to find a way to clear their debt.
Why Should I Partner with an Ethical Medical Debt Collection Agency?
Although it’s essential for any organization to collect revenue, it’s important to partner with ethical collection agencies because some agencies take things too far. They may harass patients, lie to them, blackmail them, or threaten them. Not only are these tactics immoral, but they’re also against the law.
Use the right methods to recover the medical debt in order to maintain your reputation and your relationships with your patients. Aggressive tactics are simply uncalled for in the age of COVID-19.
Danis Woods in Businessman, investment banker and stock exchange traders. On the same time he loves writing financial blogs to shed lights on different aspects that new and existing businessman are not aware of.