Optometry Coding & Billing Alert

Published on Wed Jan 27, 2010 PDF

Question: We've decided to turn over some of our outstanding accounts to a collection agency. Do you have any tips for using an outside agency?

New York Subscriber

Answer: Using an outside debt-collection agency has its advantages, but to get the most bang for your buck, you need to know how collection agencies tick.

Watch out: Skimping on the information you provide may jeopardize the collection agency's success in getting payment on your outstanding accounts. Some collection agencies have client-education initiatives in place. Agencies may call you, ask for a few minutes of your time, and explain how they work, including the agency's responsibilities, obligations, liabilities, and regulations. Those few minutes are typically well-spent and will yield a much better return on collections.

These tips will help you get the best results possible from your collection agency:

• Provide the agency with enough information for its reps to get on the phone and collect the account.

• Provide the agency with enough timely information for its reps to address a patient who disputes the debt.

• Don't hold onto the debt very long because the older the debt, the lower the ability to collect. Therefore, you need to provide the agency with the debt in a timely manner to ensure you can collect.

• Notify the agency if you receive a bankruptcy notice pertaining to an account.

• Don't assign the same accounts to multiple agencies for collection.

• Let the agency know when a patient pays your practice directly.

• Work with the agency if a patient complains to your practice.

Tip: A high-quality, compliance-focused collection agency will take the initiative to provide you with the information you need to form a profitable, efficient relationship with the agency.