The debt collection industry is evolving rapidly. The revenue stands at $14.99 billion in the US. It is expected to hit $16.7 billion by 2025. Several factors are responsible for this, including the emergence of updated debt collection regulations and changing consumer behaviors. Many healthcare firms have started to focus on their core business activities instead of simply handling administrative tasks, including payment collection. This is also fueled by the need for creditors to have access to specialized technologies to contact debtors, establish communication, and collect payments.
Outsourcing healthcare revenue cycles to debt collection agencies can transform your organization's capability. It has become a norm since creditors are now looking for experts with an unfettered drive to focus solely on improving the debt recovery rate while keeping operational costs minimal. Here are some recent healthcare revenue cycle outsourcing trends we're witnessing.
Digital-first communications
One in three people is in regular touch with their financial institutions many times a week through digital channels, while two in three people use such platforms at least once a week. With such given preferences, many healthcare debt collection agencies are going for a digital-first approach to ease the first line of communication with the debtors.
Debt collection agencies use various tools and platforms, including text messaging, automated voicemail drops, and emails, to send out reminders about past and upcoming dues with direct links to instant debt payment.
During the early stages of debt, digital approaches have proven to be more effective than traditional ones, with debtors more likely to pay when contacted digitally. Digital communication delivers a non-threatening frictionless experience that allows debtors to respond at a time convenient for them. It also helps collectors to comply with the regulations stated under the FDCPA.
There are other technologies on the rise for collectors. This includes,
Interactive Voice Response (IVR): An automated interaction with callers help gather information and answer queries.
Self-service portal: An easy-to-use platform through which debtors can manage their accounts and make payments.
Process automation tools: These are tools that offer collectors and clients complete access to debtors' information.
Collection analytics platform: It's a guiding platform for making smart decisions about performance tracking, custom reports, profiling, segmentation, and debt scoring.
Personalized collection strategies
Many creditors are now partnering with healthcare revenue cycle outsourcing companies. It helps cut down collection costs and increase the recovery rate. Creditors have experienced an increase in the recovery rate when outsourced to debt collection agencies. A professional firm will run customized collection practices with the proper use of smart technologies.
Many collection firms now use Artificial Intelligence (AI) tools to create profiles based on the debtor's repayment ability and tailor personalized strategies for each profile. It starts with debt collectors as it gives them an idea about the people they're dealing with and employs necessary strategies when it comes to encouraging them to pay.
Omni-channel approach
Collectors are now going for an omnichannel approach to debt collections. It increases the response rate and reduces the average account handling period. Here, collectors have the option to communicate in the way they prefer. For example, some people may want to refrain from speaking to an agent over a call or prefer to communicate through text or email.
During such situations, an omnichannel approach helps identify the mode of interaction and tailor future contact strategies. It also maximizes the effectiveness of interaction and further help close accounts as quickly as possible. At the least, it also opens up an avenue for the agents to negotiate the repayment terms and close the account as quickly as possible.
Early in the recovery process
Creditors may wait 90 days before outsourcing the due accounts to healthcare debt collection agencies. As a result, many are working with the collection agencies much earlier in the process. As a result, this practice is becoming common.
To concentrate on its primary business activities, a healthcare debt collection agency may want to outsource the entire order-to-cash process, including billing, call center operations, and customer communications. Also, debt collection agencies can easily track from the beginning and create tailored strategies to lower their clients' bad debt expenses, operating costs, and billing cycle delays.
Recovery with no direct interactions
One of the best ways to collect a debt is when the dues are paid without human involvement. Most agencies now use highly advanced healthcare revenue cycle outsourcing companies. These firms use personalized strategies applied to a segment of debtors. They're also helping the creditors to make the most of the low-hanging opportunities without minimal overhead costs and zero manual intervention.
Here, we'll focus on different broad categories of debtors:
- The one who missed or forgot to make the payment but is willing to pay
- The one planning to pay the debt but isn't able due to financial strain
- The one who doesn't have any plan of repaying the debt
Debtors under the first category are grateful for getting reminded about the payment. Moreover, these debtors are committed to paying their debts as quickly as possible. Also, they prefer more non-intrusive communication, i.e., text messaging, automatic call reminders, and emails. They are also willing to repay the debt quickly without talking to a human agent.
Debt collection agencies help save time when they automate these initial points of contact based on the profiles of such debtors. In addition, many perform batch operations based on these profiles to multiply the results with minimal effort.
Seasoned talent in debt recovery
With payments falling behind, there has been a rise in unpaid accounts. Unfortunately, this also means companies need skilled employees who can handle the recovery process. As a result, the demand for niche experts like those specialized in healthcare debt recovery or credit card recovery, with an acute knowledge of particular industry regulations and customer behavior, is rising.
Many regulatory policies protect the patient's right to privacy in the healthcare sector. As a result, healthcare firms and third-party debt collection companies are careful about interacting with patients. The need for relevant niche specialization and candidates with an aptitude for communicating with and resolving unpaid accounts has opened up opportunities for small and medium-sized debt collection companies. Many creditors are simply turning to these companies with niche experts who can help them recover their debts fast and through legal means.
Consumer-friendly payment options
On-time payment collection is definitely a good idea for a business. This statement may seem obvious, but far too many businesses need to make the process easier and more consumer-friendly.
Flexible payment options
Working with consumers again means meeting them where they are. Besides, not everyone can pay their bill or debt all at once. Offering flexible payment options can help you sort out things. Here are some offers you can provide to customers:
- Payment arrangements, including payment reminders to pay on time
- Automatic payment withdrawals
- Partial payments or an increase over time to gradually pay off debt
Customer service
Modern technology helps create ease when receiving consumer payment; however, technology can also have glitches or fail. Customers are more likely to pay their bills promptly if the process gets supported by quality customer service. Meanwhile, customers should be able to speak to a delegated representative in case there has been any issue when it comes to payment processing problems.
You can discuss payment plans or other ways to meet the payment obligations; a calm and caring presence will make them more willing to negotiate. Your customers will stick to the business and pay their bills if you work with them to make the process easy and secure. Even when you fail to use the latest and most significant means of tools for payment, excellent customer service, flexible payment options, and a simple payment process will significantly benefit you.
Final Wrap
It's not surprising that the need for healthcare debt recovery collection continues to rise nationwide. With higher deductibles, the healthcare industry constitutes the lion's share of all outstanding national debt, and healthcare debt collection is an important part.
Our experts closely follow the collection industry. Agencies are now prepared for the implementation of advanced technology. The easiest step is to add these tools into day-to-day operations within early out or pre-collect programs. We equally understand the collection industry and run proven strategies to improve collection flow.
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