Outside or 3rd Party collection agencies are 20% to 50% more effective than in-house collectors at collecting aged accounts (1 to 8 years old).

It has been a well know fact that 3rd party collection agencies came about as a necessity many years ago as a result of business owners reaching a roadblock with their non paying customers.

How many times can a business ask a person to pay via telephone, letters and various other methods before they give up trying to collect the debt or the person decides to pay? That is exactly the question that the patient is forcing the business owner to find out and at a very high cost.

In today’s high tech environment 3rd Party collection agencies are far more advanced in locating, contacting and collecting delinquent accounts than the majority of in-house collection divisions. The modern collection agency is tapped into so many databases and locating services that they are second only to the FBI in their ability to track and pinpoint an individuals’ whereabouts.            

The 3rd party collection agency can afford to have these expensive systems in place because they are usually servicing multiple clients’ across a broad spectrum of industries and the sheer volume of accounts being handled makes it financially feasible. 

The average business or medical provider is not equipped financially to handle the monthly expenses of using such expensive technology.

The second factor and probably the most vital one is that the 3rd Party Collection agency is just that a 3rd party not the original company or its staff. This tends to send a subliminal message to delinquent patients that action has finally been taken. They realize for the 1st time that you the business owner have finally detached from the process and they are on their own and when payment is requested this time it has more weight.

In-house collectors typically have a relationship with the patient that the patient exploits. In-house collectors are often times over extended with other duties and responsibilities and may also feel under compensated. The end result is a light hearted attempt at collecting debts versus a serious wave of concentrated and continually elevating collection activity as you would get with a 3rd party collection agency who's very existence is predicated upon collecting money.

This brings me to my 3rd point In-house collectors are usually hourly employees and no matter there recovery rate they are still going to get a check at the end of the week. You can not even question the effectiveness of a commission based employee at a 3rd party collection agency with an hourly or salaried employee of a business. The two have totally different motives that drive their production and persuasive skill set.

In-house collectors are useful to a larger degree in the early stages of a delinquent account say 1 to 3 months after that they are just redundant mechanisms with a limited ability to recover revenue. Anyone can send letters, any one can put something on some ones credit report but the true skill is in the ability to convince someone to pay a bill that they had previously decided to permanently ignore.

3rd Party collection agency reps are skilled in the art of negotiations and they know the psychologically motivating things to say and do to get the patient to at least seriously consider resolution of the debt instead of evasion tactics.

At www.AllMedicalDebt.com  our collection strategy is designed to bring a patient back to the table for quick resolution. 

Our methods are sound and time tested and have consistently out performed In-house collectors nationwide as well as other 3rd Party Collection agencies.

Call Byron Hyter at 1-866-206-9589 to discuss assigning your accounts for immediate recovery.