evaluating your collection agency:

Evaluating your Collection Agency:

What Sets an Agency Apart from the Competition

Presented By:

Bill BrownSales Executive

Credit Adjustments Inc.

What Constitutes a “Good” Collection Agency

• Superior Customer Service

• Performance• Vast Capabilities• High Recovery• Industry Knowledge• Credentials, Training &

Experience

Customer Service vs. Performance

• More then just Choosing the Lowest Bidder

• Equal Balance of the Traits

• Quality of an agency can Increase Your Success in the Future

• Evaluate an agency based on reports & recommendations

Customer Service

• Agency is a Representation of your Public Image

• Ethics

• Patients = Repeat Customers

• Some Hospitals are Paid in Quality Scores

http://www.youtube.com/watch?v=phGzXh3z55c

Performance• Percentage rate of commission may be less important then

the agency’s percentage of return

• Profit is greater in the second example because the recovery rate is higher

• Commission Rate =Meaningless

• Net Return is Key

Information from www.acainternational.org

Account Placemen

tAmount

Agency Commission Rate

RecoveryProfit from “Bad Debt”

$1,000 25% $300 $225$1,000 35% $500 $325

Reporting & Evaluating the Agency’s Performance

• Monitor accounts by monthly placementso What has been placedo What has been collectedo I.e. Recovery Report

• Compare & Contrast Your Agencies

• Complaint Log

Reporting & Evaluating the Agency’s Performance (Cont’d.)

• Random Auditing

• Reconciliation

Industry Knowledge:The Compelling Need for Understanding Your

Industry & Changes in Law

• Pressure on Hospitals to Collecto Medicaid & Medicare

Cutbacks

• New Industry Developments & Government Regulationso Value Based Purchasingo New Collection Legislation

Value Based Purchasing

• Starting October 1, 2012, hospitals will be penalized for failing to meet new value based purchasing standards established by Medicare

• Incentive Based Payments for High Customer Service Performance Standards

• www.valuebasedpurchasing.com

New Legislation

• New Prohibited Communication

• New Patient Notice Requirements

Credentials, Training, & Experience

• Complies with State Licensing & Bonding Laws

• Members of organizations such as ACA International & HFMA

……(Obviously)

• Federal and State Laws & Regulations