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Medical bills are very serious and can amount to quite a sum of money. If you are a doctor or a health care professional, chances are you might have dealt with unpaid medical bills already. These unpaid debts are one of the reasons for the increasing costs of medical facilities.
Many medical providers choose to hire professionals who are well versed in the field of medical debt collection. Read on for an overview of the cost to hire one of these services.
The Benefits of Hiring Medical Debt Collection Agencies
There are numerous reasons you should consider getting professional help in retrieving your debts.
- Frees Time and Resources: Medical professionals are better suited to delivering healthcare than collecting on delinquent accounts. A better way to collect debts is to hire people specially trained in the field so that you can do your job while they do theirs.
- More Likely to Bear Fruit: While a patient may ignore or even reject a doctor's attempts to collect monies owed, they are likely to take a medical debt collection agency seriously.
- Documentation: Your personal efforts may not be documented or may not be considered valid proof if you decide to take collection matters to the law. However, collection agencies keep records of every call, which helps if cases go to court.
Points to Consider Before Hiring a Medical Debt Collection Agency
- 1.Experience: It is important to know the experience of the debt collection agency and its track record. This helps you get a good idea of whether or not the agency is competent enough to handle the debt collection.
- 2.Customer Service Expertise: Collecting debt may be hard, but it doesn’t have to be all about force. The debtors need to be respected as well, which is why it is important to consider the track record of agencies to ensure they offer compassionate services.
- 3.Budget: As there are many services with varied costs, it is important to consider agencies that offer the best prices. The cost should be in your price range and should be lower than the debt amount. Otherwise, you might end up paying more than you're receiving.
Sample Costs of Hiring a Medical Debt Collection Agency
The cost of hiring a collection agency depends on a wide variety of factors, from your physical location to the total amount of debt being collected. Although the general prices vary across the many agencies, here are some sample costs to give you an idea of what outsourcing your medical debt collection may cost you.
- For a small medical debt collection of $500 to $600, which involves debt collection letter service, medical debt collection agencies charge between $20 and $30.
- For larger debts of $2,500 to $3,000, medical debt collection agencies usually charge a registration price between $20 and $30 and an added 10 to 15 percent collection fee of the original debt total.
- For debts falling totaling $3,000 and up, medical debt collection agencies charge a registration price between $80 and $100 with an added commission of 5% to 10% of the original debt total.
- Another way of pricing is by using the amount that is actually collected. These collection agencies charge between 10% and 15% for the first $500 to $1,000 they recover.
- Medical debt collection agencies charge between 8% and 10% for a recovered sum of $5,000 to $6,000.
- Medical debt collection agencies charge between 6% and 8% of the recovered sum of $8,000 to $10,000.
- Medical debt collection agencies charge between 4% and 6% for any recovered sum that exceeds the amount of $10,000 to $12,000.