South Florida Hospital News
Thursday November 23, 2017
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December 2011 - Volume 8 - Issue 6

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Why Outsourcing Receivables Early Makes Economic Sense

Many companies handle early stage billing and collection activity internally, but with lean staffs and the need to focus on core business, their efforts are less effective. This reality has prompted many companies to outsource early stage receivables (sometimes the entire billing process) in order to realize the greatest gains and refocus internal talent on core business priorities. In most instances, outsourcing early stage receivables means your outsourcing partner acts as an extension of your company, contacting customers in your name and operating in line with your philosophy, all the while applying best-in-class recovery strategies, technology and processes.
 
Shortly after implementing an outsourcing program, most companies quickly achieve increased cash flow and lower operating costs. And savings continue over the long term because fewer accounts need to be sent to third party collections. Paul Legrady of Kaulkin Ginsberg writes, “first party collection efforts can be less expensive to a creditor over time than other collection services, given the lower fees associated with first party collections.” So not only do you collect more when you take action early, you spend less doing so.
 
Top tier outsourcing firms hold customer relationships and company image as top priority and are experts at employing strategies that strike the perfect balance of getting customers to pay while preserving the business relationship. Customers feel respected and can be more apt to give repeat business and referrals as a result of the professional, courteous manner in which their delinquency was handled.
 
Even with significant investment, in-house departments can hardly compete with the cutting-edge technology, receivables expertise and proven collection strategies available to them when using an experienced outsourcing firm. Furthermore, outsourcing firms are up-to-date on the latest legal standards, as their survival is dependent upon operating within the complex laws governing credit and collections.
 
The real benefit of outsourcing is that expertise is placed where it makes the most business sense; the receivables experts are working on your receivables while you are focused on what you do best: your business.

Only one company has received HFMA Peer Reviewed Designation, serves as an MGMA®AdminiServe®partner and is sponsored by the AMA: Transworld Systems Inc.® With more than 100 offices throughout the United States and Puerto Rico, they have collected $2.4 billion over the past 5 years for more than 60,000 clients. Contact Michele Raps for free consultation at Michele.Raps@transworldsystems.com or (954) 646-7095.

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