Modernize Your Collection System For Maximum Profit
September 6, 2016
In today's tough economy, there are many professionals that are faced with the challenge of Accounts Receivable. Uncollected receivables are a financial burden to any small business. You and your staff have given your professional time and services, only to lose revenue opportunity. Accounts receivable issues are a growing concern for many practices . Fortunately, there is a solution to this problem that utilizes a systematic approach to collections . Why not collect more funds and save valuable staff time, while balancing the client-practice relationship?
The biggest mistake providers make is not recognizing the signs of early default. When a client doesn't pay their bill within 60 days or hasn't set up or is not following a payment plan, they are telling you that they are not going to pay! Should you use your staff 's time trying to collect these accounts?
As a veterinary provider, you are implementing state-of -the-art methods to treat your clients' needs. You also need to employ the most up-to-date methods to keep your practice fiscally fit.
In the past, collection agencies were the only "act on the block" and were viewed as the last resort to collecting your money. They were expensive and often cared little about your relationship with your clients. You had no control over how they treated your client and you never knew if they collected your money or not. Often the collector, who is paid on a commission basis, "cherry picked" over your accounts and attempted to collect only the larger ones and did not work the smaller ones. And, many of your accounts that were collectable were deemed too small to work. Thus, you lost money when you didn't need to.
What is needed is a proactive, systematic business model that w ill work all of your delinquent accounts equally. Providers must take an approach that will reduce losses as well as speed up cash flow from past due accounts. You need to work with your clients quick ly and effectively. Outsourcing your collection problems to a service bureau can be much more cost effective than working them in-house -and certainly more effective. Utilizing a third-party collection method that will keep you in complete control of the collection process is a must. The third-party system should be respectful, but firm, and utilizes every possible legal tool to collect your money.
The provider who utilizes a systematic third-party approach to collect their money will see an increase in their bottom line. Covetrus financial services offers MaxCollect Patient Collections which will provide your business with an effective means to achieve debt resolution with your clients. Benefits of this method include: ('1) collected funds remitted directly to the veterinarian (not an agency); (2) low fees, as little as 5% (average cost '1 0- '1 5%); (3) every account , regardless of size, is pursued for collection; (4) credit bureau reporting; and (5) a simple legal process, if necessary.
About the Author
Keith Drayer is Vice President of Covetrus Financial Services. Covetrus helps healthcare practitioners operate financially successful practices through our diversified suite of financial and business resources. Covetrus portfolio of resources is designed to give our customers the financial advantage critical to success in today's changing marketplace.
The biggest mistake providers make is not recognizing the signs of early default. When a client doesn't pay their bill within 60 days or hasn't set up or is not following a payment plan, they are telling you that they are not going to pay! Should you use your staff 's time trying to collect these accounts?
As a veterinary provider, you are implementing state-of -the-art methods to treat your clients' needs. You also need to employ the most up-to-date methods to keep your practice fiscally fit.
In the past, collection agencies were the only "act on the block" and were viewed as the last resort to collecting your money. They were expensive and often cared little about your relationship with your clients. You had no control over how they treated your client and you never knew if they collected your money or not. Often the collector, who is paid on a commission basis, "cherry picked" over your accounts and attempted to collect only the larger ones and did not work the smaller ones. And, many of your accounts that were collectable were deemed too small to work. Thus, you lost money when you didn't need to.
What is needed is a proactive, systematic business model that w ill work all of your delinquent accounts equally. Providers must take an approach that will reduce losses as well as speed up cash flow from past due accounts. You need to work with your clients quick ly and effectively. Outsourcing your collection problems to a service bureau can be much more cost effective than working them in-house -and certainly more effective. Utilizing a third-party collection method that will keep you in complete control of the collection process is a must. The third-party system should be respectful, but firm, and utilizes every possible legal tool to collect your money.
The provider who utilizes a systematic third-party approach to collect their money will see an increase in their bottom line. Covetrus financial services offers MaxCollect Patient Collections which will provide your business with an effective means to achieve debt resolution with your clients. Benefits of this method include: ('1) collected funds remitted directly to the veterinarian (not an agency); (2) low fees, as little as 5% (average cost '1 0- '1 5%); (3) every account , regardless of size, is pursued for collection; (4) credit bureau reporting; and (5) a simple legal process, if necessary.
About the Author
Keith Drayer is Vice President of Covetrus Financial Services. Covetrus helps healthcare practitioners operate financially successful practices through our diversified suite of financial and business resources. Covetrus portfolio of resources is designed to give our customers the financial advantage critical to success in today's changing marketplace.
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