Best Practice (Good)
Implement collections processes (e.g., incurred late fees, overdue notices, telecommunication reminders, emails) based on how delinquent the bills are, rather than the fact that they are delinquent. Implement different strategies for the 30 day, 60 day, 90 day, 120 day mark, and so on. Patients whose bill is delinquent 90 days are 55% more likely to pay their bill than patients who are delinquent for longer periods of time.
Typical Practice (Bad)
Implement standard collection processes for delinquent bills, regardless of how many days they are overdue, with a cut-off number of delinquency days that will designate the bill to be sent to a collections agency.
Benefits: Reduces the patient billing cycle by specifically targeting delinquent patients based on the likelihood of their bill resolution. Collections processes can be customized to the delinquency level, indicating the need for a more aggressive collections strategy.