Changes at FICO will impact your medical collection efforts.
In a recent announcement the creator of the most widely used — and therefore most influential — credit score stated that overdue medical bills will not affect consumer’s credit scores as in the past.
Good news for consumers, but not necessarily for you.
Essentially, unpaid medical bills will not impact your current or former patient’s credit score as much as before.
So what does this mean for your practice?
Medical collections and getting paid
When a former customer, client or patient fails to pay their bill the underlying reasons come down to two basic categories:
- they don’t want to pay the bill
- they can’t pay the bill
In the first case the only incentive to get people to pay is risk of damage to their credit score, or legal action.
But for the second reason outlined above, take this statistic into consideration: in 2012 around 25% of U.S. families struggled to pay medical bills, and 10% stated that they had bills that they couldn’t pay at all.
That doesn’t mean that all those who owe you money can’t pay.
Many of those former patients who are past due do have the ability to pay their bills over time. Which is why it makes sense to work with a professional medical collections company that can help you recover some (or most) of your outstanding revenue.
And as I’ve been saying for a LONG time, which was recently shared by Anthony Sprauve, a FICO spokesperson, “medical debt is not like other types of collections.” Additionally, when it comes to the TOTAL AMOUNT of unpaid bills…
“a little over 50% are unpaid medical debt, so you can see in the world of collections, medical debt is a huge issue.”
Additionally, because most medical bills are submitted to insurance companies first some consumers may not realize for a time that they are behind on their bills.
But consider this… if failure to pay medical bills and being taken to collections will not adversely affect a person’s credit as much as before, how much incentive do people have to pay your bill?
In other words, faced with other bills to pay you can expect to find your unpaid bills on the bottom of everyone’s list.
So what can you do?
Clearly the need to outsource your collection efforts to an EXPERIENCED medical collection agency is more important than ever, especially if you have a small medical or dental practice. After all, the costs of compliance and lost productivity is not something you can afford to lose.
Find a medical debt collection agency today
To find a medical collections agency that specializes in medical practices like yours simply request more information from qualified and reputable companies.
Click the link and compare free medical collection agency quotes today.
This way you can save time, money and aggravation by hiring a professional who can help you start collecting on your outstanding bills.
After all, you really have two choices:
- you can keep doing what you’re doing (expecting a different result), or
- you can hire an outside company that can help you collect the money you rightfully deserve.
At the end of the day it’s your money…