Health Care Collector - Kluwer Law International

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When to Refer an Account to Collection
Unless you are using a collection agency on an
early out basis, it is typical to place an account with
a collection agency or attorney 90 days after the
invoice date if there has been no response from the
debtor after routine statements and efforts to contact
the debtor. The debtor’s silence may mean he
or she doesn’t care or is unable to pay; but in either
case, there is a problem. In any of the following
situations, creditors may want to consider earlier
placement with an agency:
• Two or more broken promises of payment;
• The debtor’s phone is disconnected or is now
unlisted;
• The debtor makes repeated requests for documentation,
a common stall tactic;
• The debtor claims he or she can’t pay and refuses
to discuss a date for payment, or a payment
schedule;
• The debtor says he or she will take care of the
account, but won’t commit to a payment plan; or
• The debtor adopts a confrontational attitude
or raises disputes regarding the account after a
lengthy period of silence during routine billing.
Consider these situations to be red flags that
indicate potential problems with this patient. If
your staff is limited, your collection agency or
attorney may be better equipped to address these
difficult situations.
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