Medical Debt Collection Cost

Medical Collection Services in Delaware

As a medical practice owner in Delaware, you understand the challenges of outstanding medical bills. It’s a dilemma that affects your revenue and distracts you from providing high-quality healthcare to your patients. That’s where medical collection services come in. These agencies specialize in the pursuit of unpaid bills, helping you reclaim your lost revenue.

Understanding Medical Collection Services

Medical collection agencies serve as a bridge between healthcare providers and patients who have unpaid medical bills. These agencies employ various tactics, all within the boundaries of the law, to recover the outstanding debt. Their primary tasks include tracking down patients, negotiating payment plans, and, in some cases, litigating to recover the debt.

As a financial advisor specializing in medical debt recovery, I have witnessed firsthand how these agencies operate. It’s crucial to understand their processes and methods in order to choose the right agency for your healthcare practice.

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The Core Functions of a Medical Collection Agency

The primary role of a medical collection agency is to facilitate debt recovery. However, their tasks can be quite varied and complex, extending beyond simply demanding payment from a patient. Here’s a closer look at their core functions:

  1. Account Receivables Management: They oversee the entire lifecycle of an account receivable, from the moment it becomes overdue until it is paid in full or deemed uncollectible.
  2. Billing Services: Some medical collection agencies also offer medical billing services. They handle everything from coding medical procedures to submitting claims to insurance companies.
  3. Compliance with Laws: Medical collection agencies need to adhere to state and federal laws, including the Fair Debt Collection Practices Act (FDCPA) and the Health Insurance Portability and Accountability Act (HIPAA). Violation of these laws can lead to severe penalties.
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The Tactics Employed by Medical Collection Agencies

Medical collection agencies use a variety of tactics to recover debt. Here are some common strategies:

  1. Sending Collection Letters: The agency sends a written notice to the patient, informing them of the debt. This is usually the first step in the collection process.
  2. Making Phone Calls: If letters don’t elicit a response, the agency may follow up with phone calls. These are intended to prompt a conversation about payment and possibly negotiate a payment plan.
  3. Reporting to Credit Bureaus: Unpaid medical debts can affect a patient’s credit score. Many agencies report unpaid debts to major credit bureaus, which can encourage payment.
  4. Litigation: As a last resort, some agencies may take legal action to recover a debt. This is typically reserved for larger debts and happens only when other tactics have been unsuccessful.
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How Medical Collection Agencies Operate

When a healthcare provider hires a medical collection agency, they usually hand over information about the patient and the unpaid debt. This information can include the patient’s contact details, the amount owed, the date of service, and any prior attempts at collection.

The agency then initiates the collection process. This often starts with sending a collection letter to the patient, followed by a series of phone calls if the patient fails to respond. Throughout this process, the agency must comply with relevant laws. For instance, they cannot harass or threaten patients, nor can they call them at unreasonable hours.

If these efforts don’t yield results, the agency might escalate the matter. This could involve reporting the debt to credit bureaus or taking legal action. However, these are typically last resorts and occur only after all other avenues have been exhausted.

The Cost of Medical Collection Services

The cost of hiring a medical collection agency can vary significantly, depending on their fee structure. Some agencies charge a flat fee per account, while others operate on a contingency basis, taking a percentage of the recovered debt. It’s crucial to understand the cost implications before engaging an agency. Despite the cost, many healthcare providers find that hiring a collection agency is more cost-effective than attempting to recover the debt themselves.

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The Impact on Patient Relations

A crucial aspect to consider when hiring a medical collection agency is its potential impact on patient relations. A reputable agency will employ ethical and respectful tactics, preserving the relationship between the healthcare provider and the patient. This is crucial as preserving patient goodwill can often lead to better payment compliance in the future.

Understanding the intricacies of medical collection services can empower you to make an informed decision when choosing an agency. By selecting a reputable agency that aligns with your practice’s values and needs, you can improve your revenue recovery without compromising your relationship with your patients.

Why You Need a Medical Collection Agency

With a specialized collection agency for medical bills on your side, you can focus on what you do best – providing care to your patients. Meanwhile, the agency handles the painstaking process of recovering your revenue. This can drastically reduce your administrative burden and enhance your practice’s financial health.

Improved Focus on Patient Care

As a healthcare provider, your primary goal is to deliver high-quality patient care. Unfortunately, the time and effort needed to recover unpaid bills can divert your attention from this crucial task. By outsourcing your medical debt recovery to a specialized agency, you can allocate more time and resources to your patients. This not only improves the quality of care but also enhances patient satisfaction, which can lead to increased patient loyalty and a stronger reputation for your practice.

Increased Debt Recovery Rates

Medical collection agencies have specialized expertise in recovering healthcare debts. They have trained personnel, proven strategies, and advanced technologies at their disposal. This expertise can significantly improve the chances of recovering your unpaid bills. Moreover, many of these agencies operate on a ‘no recovery, no fee’ basis, which means they only get paid when they successfully recover a debt. This arrangement incentivizes them to recover as much of your outstanding debt as possible.

Legal Protection

Medical debt collection is governed by several laws to protect patients from unfair practices. Failure to comply with these laws can lead to hefty fines and even lawsuits. However, navigating these laws can be complex and time-consuming. A reputable medical collection agency understands these laws inside and out and ensures that all collection activities are conducted legally. This not only protects you from legal risks but also ensures ethical treatment of your patients.

Streamlined Operations

Aside from collecting unpaid bills, some medical collection agencies also offer services that streamline your billing process. These can include medical coding, claim submission, follow-ups with insurance companies, and more. By taking these tasks off your plate, the agency can help streamline your operations, reduce administrative errors, and improve your overall revenue cycle management.

Better Patient Relationships

One might think that hiring a collection agency could damage your relationship with patients. However, a reputable agency approaches debt recovery in a respectful and empathetic manner. They understand the sensitive nature of medical debts and strive to preserve your patient relationships. This respectful approach can even improve your relationship with patients, as they may appreciate the fair and patient-centric approach to debt recovery.


While there is a cost associated with hiring a medical collection agency, it’s often more cost-effective than trying to recover the debts yourself. Think of the time, resources, and infrastructure needed for in-house debt recovery. In many cases, these costs far outweigh the fees charged by a collection agency. Plus, as mentioned earlier, many agencies work on a contingency basis, so if they don’t recover your debt, you don’t pay a fee.

Hiring a medical collection agency can offer several benefits for your practice. From improved patient care to increased recovery rates, legal protection, streamlined operations, better patient relationships, and cost-effectiveness, the right agency can significantly enhance your practice’s financial health and operational efficiency.

How to Choose the Right Medical Collection Agency

The success of your debt recovery process depends largely on the agency you choose. Here’s how you can select the best medical collection agencies that suit your needs.

Look for Specialized Experience

Not all collection agencies are created equal. Some specialize in specific industries, and within healthcare, some focus more on certain types of practices or medical bills. Choose a medical collection agency that has proven experience in your specific field.

Check Their Success Rate

An agency’s past success rate can be an indicator of how well they might handle your accounts. Ask about their recovery rate and request references from other medical practices similar to yours.

Understand Their Pricing Structure

Each agency will have its pricing structure. Some charge a flat fee, while others work on a contingency basis, taking a percentage of the recovered debt. Weigh the pros and cons of each structure to choose what works best for your practice.

Finding a Medical Debt Collection Company

With so many medical collection agencies to choose from, finding the right one can be daunting. Here are a few ways to narrow down your options.

Use Online Directories

Online directories can be an excellent place to start your search. They usually provide a list of agencies, including their contact information, services, and sometimes even customer reviews.

Check the Better Business Bureau

The Better Business Bureau (BBB) maintains records of all businesses in the United States, including any complaints or disputes filed against them. Checking the BBB can help you gauge the reliability of an agency.

Consider Local Agencies

While there are numerous national medical collection agencies, don’t overlook the local ones. A Delaware medical collection agency might be more familiar with the state’s regulations and consumer behaviors, offering a more personalized and efficient service.

Ask for Recommendations

Your peers might have valuable insights and experiences to share. Don’t hesitate to reach out to other medical practice owners in Delaware to ask for their recommendations.

Best Medical Collection Agencies in Delaware

Recovery Solutions Group

7244 S Dupont Hwy Suite 2, Felton, DE 19943

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Medical Reimbursement Solutions

29517 Glenwood Dr, Millsboro, DE 19966

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Simm Associates

800 Pencader Dr, Newark, DE 19702

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Tanner & James

32 W Loockerman St, Dover, DE 19904

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Parson Bishop National Collections Inc.

428 Garland Rd, Wilmington, DE 19803

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What Type of Solution Do You Need?

Healthcare Collection

Dental Collection

Navigating the landscape of medical debt recovery can be complex, but with the right collection agency, it doesn’t have to be a burden. Take your time, do your research, and make an informed decision. Remember, your goal is to improve your practice’s financial health without compromising your relationship with your patients.


1. Can a medical collection agency handle insurance disputes?
Yes, many agencies also deal with insurance disputes, helping to ensure that your practice receives the correct payment from insurance companies.

2. How does a medical collection agency affect my relationship with patients?
A good agency will use ethical and empathetic strategies to recover debts, ensuring that your patient relationships are preserved.

3. How long does the debt recovery process take?
The duration can vary widely depending on the size and age of the debt, as well as the strategies used by the agency.

4. Is it worth the cost to hire a medical collection agency?
Typically, yes. An effective agency can recover a significant amount of your outstanding debt, improving your practice’s bottom line.

5. Can I hire more than one agency?
Yes, but this can lead to confusion and inefficiencies. It’s typically best to work with one agency that you trust.

Delaware Zip Codes Where We Provide Medical Debt Collection Services

19701, 19930, 19931, 19933, 19934, 19936, 19703, 19938, 19939, 19706, 19940, 19904, 19901, 19902, 19941, 19943, 19944, 19945, 19946, 19947, 19950, 19951, 19952, 19953, 19707, 19954, 19955, 19956, 19958, 19960, 19962, 19964, 19709, 19963, 19966, 19967, 19968, 19710, 19720, 19702, 19711, 19713, 19717, 19716, 19970, 19730, 19731, 19971, 19732, 19733, 19973, 19975, 19977, 19734, 19979, 19808, 19805, 19810, 19802, 19803, 19804, 19801, 19809, 19806, 19807, 19735, 19736

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