Clearing Aging Accounts Receivable with Targeted Call Campaigns

Snapshot

In the past, a patient would come in for a procedure, and if they were unable to pay that day, a small payment plan would be set up and the balance would be cleared in short order. Unfortunately, high deductible health insurance plans have put more of the burden on patients, meaning higher balances. If they had additional procedures or were on a small payment plan, those balances would grow or stay high. Suddenly a 25-dollar per month payment plan, which used to work to clear a patient’s smaller balance, now would take years to pay a patient’s high balance. In the meantime, this would leave hospitals with low cash flow in the present, and an ever-growing list of accounts receivable (AR) in the future.

The Problem

With many hospitals moving to more reasonable payment plans or loan programs, the problem was what to do with these legacy accounts. Payments were being made, but at a very low rate that would leave them in AR nearly in perpetuity. They were not good candidates for collections, but the question remained how do you handle them?

The Solution

At Americollect, one answer to these accounts was to offer a one-time settlement that would not only clear these long-standing accounts from the financials, but also provide a cash infusion that would help bolster the bottom line for hospitals. We utilized a calling campaign, which are calls aimed to a specific group of people to elicit a specific reaction, as well as a mailed notice to explain what was happening and served as an alternate communication method. We were able to target long-term AR patients, taking the time to ask them for payment in full, at a slightly reduced rate, to make larger monthly payments that would finish their balance in three to four months to clear the balance faster, or put them on a new official loan program that was offered by the hospital.

This was accomplished by using a two-stage targeted calling campaign. The first would ask for payment in full or at a slightly reduced rate but was also used to talk to patients about their options. It was a good way to reach patients and help them understand the situation. The second calling plan was more direct and worked with patients to fulfill their obligation, and if they were unable to do so, place them on a more up-to-date payment plan with the low interest rate loans offered through the hospital.

The calling campaigns were not labor-intensive, taking less than a week each. This means not only was the hospital able to clear up old AR, the investment in time and resources was quite low. With these targeted campaigns, we were able to speak to the right people at the right time and collect the right amounts.

The Results

With this targeted calling campaign, Americollect is able to bring in approximately $188,000 on the first attempt and $287,000 on the second round of calls. This was on top of regular early out revenue. This additional revenue not only helps clear old AR, but it also brings a welcome infusion of cash to the hospital. While this is not meant to be a long-term solution for revenue needs, it does help remove old AR and bring those that do not wish to pay in full onto a more current payment plan that better eliminates their balance.

Conclusion

For Americollect Early Out clients, the easiest way to eliminate those balances may be through a targeted calling campaign. Americollect is more than happy to review your situation and present a plan that will not only clear older accounts, but also give your facility a welcome cash infusion all while keeping your early out payments in order. By working with your patients to help them understand what you are doing any why, we can keep our promise of being Ridiculously Nice — something we can all smile about!