(FROM A COLLECTION AGENCY STANDPOINT)
Let’s quickly examine the dynamics of the current insurance market.
As we’ve already written about, the cost to engage medical services has risen year after year.
Rising health insurance premiums force consumers to make a choice: pay the additional premiums to retain their current level of service or pay the same amount in premiums to receive a lower level of service.
In many cases, a lower level of service amounts to a higher deductible: more money that patients must pay out of their own pockets before their health insurance kicks in to cover the rest of their medical fees.
By the way, one could argue that co-pays also rise in lower level service plans. But co-pays usually don’t become so inflated as to prove insurmountable to consumers. No one likes it, but most people can swallow the expense if their co-pay rises from $20 to $50. Frankly, a medical co-pay does little more than separate “window shoppers” from “serious buyers” in the medical services industry. In other words, if you’re willing to plunk down $50 to see your doctor, it likely means that you’re really and truly sick –sick enough to justify the expense of seeing your doctor.
Let’s look at a hypothetical case where a patient has a serious illness. His doctor’s office charges $9,000 to perform a corrective procedure. The patient’s insurance features a $3,000 deductible.
If the doctor consents to provide the patient care, he’s really making a business decision. This decision can be paraphrased like this: “I’m willing to risk working for $6,000 (the money the patient’s insurance will pay) while I extend the patient credit for his $3,000 deductible and hope to goodness he follows through on paying that money off.”
But herein lies the fallacy of rising health insurance deductibles. If a patient’s insurance features a high deductible, it’s a leading indicator that he isn’t a person of significant economic means. In other words, if he can’t afford insurance with lower deductibles, statistically speaking he’s more likely to default on any credit he’s extended to cover his deductible.
This is hardly a novel insight. The person you see driving a Ferrari is likely wealthier than the person who’s driving a beat up Honda Civic that has a cracked windshield and is missing a tail light. It’s the same corollary.
Most doctors understand this aspect of their business. So why do they keep extending credit to the patients? They do it for the same reason anyone extends credit to anyone else. They can justify the ratio of risk-to-reward in their profit model. It’s better to keep extending credit to people knowing that some people will default rather than extend credit to no one.
But people can and do default on the obligations to health care service providers. In many cases, the service provider doesn’t know how to recover the funds. Or he feels that he can’t. Or he feels that any attempt to do so wouldn’t be cost efficient.
He’s wrong on all counts.
The solution to each of these scenarios is Western Control Services.
If you’re a medical service provider whose books are weighted down by one or several or hundreds of outstanding client accounts, we urge you to contact us immediately.
Our company has over 30 years’ experience recovering money owed to businesses just like yours. Our trained specialists follow a defined methodology that generates proven results time and time again in a variety of sectors. We consistently beat the average for funds recovered by collection agencies nationwide. And engaging us won’t cost you a penny, until we collect your money.
Western Control Services
We get you paid for the work you’ve performed.