Evaluating your Collection Agency What Sets an Agency

Evaluating your Collection Agency: What Sets an Agency Apart from the Competition Presented By: Bill Brown Sales 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

• 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=ph. G z. Xh 3 z 55 c Customer Service

Performance • Percentage rate of commission may be less important then the agency’s percentage of return Account Placement Amount Agency Commission Rate Recovery Profit from “Bad Debt” $1, 000 25% $300 $225 $1, 000 35% $500 $325 • 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

Reporting & Evaluating the Agency’s Performance • Monitor accounts by monthly placements o What has been placed o What has been collected o 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 Collect o Medicaid & Medicare Cutbacks • New Industry Developments & Government Regulations o Value Based Purchasing o 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