The world of medical expenditures has been growing rapidly and is increasingly becoming more complex. Medical providers have been discovering that they can recover some of their zero-valued accounts, and their organizations are experiencing substantial success by selling these non-performing receivables.
Medical professionals now understand the importance of recovering dollars from zero-valued assets, which include aged, distressed or uncollectible receivables. Financial decision-makers increase their corporate cash flow and improve their bottom line when selling bad debt, without sacrificing quality of service and without spending a penny. Unlike a collection agency, a debt buyer actually owns the accounts after the transaction. The seller is freed of the financial, administrative, and management burdens associated with non-performing accounts. Consequently, the medical organizations time and resources are freed up for more productive activities (like pursuing the paying customers). Selling debt to a buyer also eliminates the liabilities of any Fair Debt Collection Practices Act violations possibly committed by in-house staff or by secondary agencies. When a medical receivables professional decides to sell debt, the buyer provides the client with a proposal for a single purchase of a bad debt portfolio of all outstanding accounts. These accounts receivable have a definitive life span and value. The next step is developing a proper time line. Should the seller get rid of the debt immediately after internal collection efforts have been made, or should a third-party collection agency attempt to collect the debt until it has exhausted its collection activity? While there are advantages to either approach, selling bad debt early reduces administrative expenses associated with handling the debt internally. Selling debt early may also prove advantageous as the seller may get more money for the sold accounts as time advances, the value of the accounts decreases. Selling debt on an ongoing basis, called a forward flow program, will bring more predictability to cash flow and will be most effective in the long run. A forward flow sales program assures that the buyer will be purchasing accounts from the seller on a monthly basis. Accounts placed to the collection agency that are not collectible within the set timeframe are forwarded to the buyer. A forward-flow process clearly defines income for non-performing receivables, positively impacting long-term cash flow. When analyzing the benefits of selling bad debt, it is important to consider the effect of returns beyond just the immediate cash return. Generally, the advantages of selling dormant bad debt extend considerably past just increased cash flow. There are plenty of other advantages, like not having to be responsible for the accounts, and being able to concentrate on more important things, like your patients. MEDCLR representatives personally consult prospects and clients to explain, educate, and accompany them through the entire debt selling process, and to customize a bad debt management program that is right for them. The data required to set up a bad debt management program is easily exported to MEDCLR, therefore avoiding cumbersome calculations and agonizing valuating and balancing processes. Although MEDCLR owns clients accounts, we understand that the way we handle the accounts directly impacts your reputation, and we ensure that your organizations credibility is never sacrificed. MEDCLR is the largest and most experienced debt buyer within the medical industry, with billions of dollars in non-performing receivables purchased. Every day, we help medical receivables experts sell dormant bad debt accounts and infuse your organizations bottom line with instant cash. The bottom line is that you get a fair price for your bad debt receivables today instead of waiting months or even years hoping to be paid. It is a solution that really adds up.
