Assigning your bad debt accounts to a primary collection agency can only be expected to yield so much; industry averages indicate that primary collection agencies recover less than 20% of assigned balances. After 6 months or so with a primary collection agency, unresolved accounts begin to stock pile and lie dormant; there are only so many efforts that a debt collector can affect without generating complaints.
Our research has taught us that a viable practice is to assign accounts to a primary agency for approximately 6 months, and then recall non-resolved accounts and place them with a secondary agency. We have created our own secondary division specifically for handling second placement accounts.
Here are some of the advantages:
- The new ‘secondary’ agency treats the accounts as new placements and begins a “fresh” recovery process
- The patient has a window of opportunity to pay their account prior to it being credit reported again
- With time, many patients are in improved financial condition and better able to honor their obligations
- Primary agencies become more efficient and productive because they have a time defined window to resolve accounts.
DRSI is not the first agency to encourage clients to recall accounts and reassign them to secondary agencies, however our many years of perfecting the process has met with great success. Some of our most successful clients utilize combinations of our programs in order to achieve their specific revenue goals. One more healthy solution with a personal touch!