With the economy transforming unpredictably and the effects of the pandemic reverberating throughout America, those we rely on for jobs and to keep us healthy need new revenue streams more than ever. The newest, strangest one: old Accounts Receivables recovered using Compassionate Collections techniques.
In yet another twist and turn in an already eventful year, the economic effects of the pandemic are quickly starting to reveal themselves in unusual ways.
Healthcare providers have been hit particularly hard with an overflow of patient volume, coupled with all the challenges of running a high-overhead operation during a pandemic. Naturally, they need cash flow to keep from going under but are reluctant to take on additional financing, do severe cutbacks, and other cost-saving measures so they have turned to something that costs them nothing out of pocket yet brings them the funds they need to keep their communities healthy: compassionately collecting old Accounts Receivables.
In other words, healthcare providers like private practices, hospitals, surgery centers and medical groups are going back to patients with balances owing from years back and kindly asking them to pay what they can reasonably afford on a settlement plan that won’t disrupt their lifestyle and allows them to keep their dignity.
Ironic as it may seem at first glance, it may make more sense upon closer inspection.
“Healthcare consultants are getting creative and are finding new ways to bring in revenue that doesn’t require financing, additional work, financial risk, or legal issues,” says Jason Savedoff, the Founder of Diplomatic AI, a technology company that connects healthcare providers and businesses with the top 10 Compassionate Collections agencies.
Businesses are also getting in on the action, circling back to old customers who still have outstanding balances and – instead of hassling them – are giving them a gentle way to ‘pay what they can reasonably afford’ over an extended period of time, as a way of recouping the funds they are rightfully owed, while sending a message that you can’t just walk in, take what you want, and leave without paying, even if the transaction occurred 3,4,5 or more years ago.
“Sure, it’s not the most pleasant thing for either party, but at the end of the day, many businesses are in survival mode and are doing things they ordinarily wouldn’t do in order to keep the lights on, keep their employees paid and survive until the economy gets back on solid ground,” says Savedoff. “We’re seeing a massive surge in demand, not something that’s highly publicized for obvious reasons, but it’s fascinating to see businesses be more open-minded to different ways of increasing their cash flow.”
The sense of urgency is also fueled by a public, yet little known fact, that in most States, the statute of limitation resets when a debtor pays a small amount, even just $10 or $20. This means that companies are scrambling to send their delinquent accounts to a compassionate, compliant collection agency as soon as possible to capture this initial ‘good faith’ payment so they ‘reset the clock’, unlocking many more years to get the remainder of the balance owed.
Interestingly, compassionate collections, which is essentially a collections approach grounded in treating debtors with dignity, diplomacy and integrity, is actually outperforming the usual ‘smash and grab’ techniques that have given the collections industry the PR nightmare it rightfully deserves over the years.
“What makes our approach a grand slam is that everything is done on contingency so no one has to go out of pocket to get the money they are owed,” explains Savedoff, “and since companies are safeguarded by indemnification, hold harmless clauses and other legal protections they feel comfortable. Pair this with the fact that they aren’t upsetting their clients or patients and it’s a big win all around.”
To learn more about Compassionate Collections, visit www.Diplomatic.ai
Release ID: 89004159