10/12/2017 1 Collections, Creditor and Compliance Presented by: Bea Cheesman, Mark Rowland, Ed Vance, Nathan Sullivan and John Dunkum Give me the facts… Impacts of Third-Party Debt Collectors Agencies recover approximately $55.2 Billion in 2013. Agencies kept on average 19% of the money recovered. Returned nearly $44.9 Billion to creditors. Healthcare related debt is the leading debt category, representing nearly 38% of all debt collected or approximately $21 billion.
Transcript
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Collections, Creditor and CompliancePresented by:
Bea Cheesman, Mark
Rowland, Ed Vance, Nathan
Sullivan and John Dunkum
Give me the facts…Impacts of Third-Party Debt Collectors
� Agencies recover approximately $55.2 Billion in 2013.
� Agencies kept on average 19% of the money recovered.
� Returned nearly $44.9 Billion to creditors.
� Healthcare related debt is the leading debt category, representing nearly 38% of all debt collected or approximately $21 billion.
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� Early Out Debt, defined as a receivable that is aged 90 days or less, represented 29% of all the debt collected.
� Bad debt or debt collected that is aged more than 90 days, accounts for the remaining 71%.
� Agencies employ more than 136,000 employees and there are more than 5,900 agency owners.
� Total payroll impact of Third Party agencies were calculated over $12.4 billion to the U.S. economy.
� Agencies made more than $130 million in charitable contributions in 2013.
� Industry employees spent approximately 1.9 million hours volunteering for causes including 571,600 hours at company sponsored volunteer activities.
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Collection Assignments and Averages
� 1 billion accounts totaling $756 billion was placed for collection in 2013.
� Average placement balance $753.
� $756 billion placed while $55 billion recovered, equates to 7.27% return.
� Consumers requested debt verification on over 10% of the total placed or $100 million.
� 5% of the total placed were disputed.
Regulators and Acts…� FDCPA (Fair Debt Collection Practices
Act) established in 1978. The main purpose of the FDCPA is to ensure that consumers will be treated fairly in regards to debt collection.
� FTC (Federal Trade Commission) is charged with enforcing FDCPA.
� FCRA (Fair Credit Reporting Act) established in 1970.
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� TCPA (Telephone Consumer Protection Act) established in 1991. The TCPA restricts telephone solicitations (i.e., telemarketing) and the use of automated telephone equipment.
� FCC (Federal Communications Commission) is charged with enforcing TCPA.
� CFPB (Consumer Financial Protection Bureau) established in The CFPB's creation was authorized by the Dodd–Frank Wall Street Reform and Consumer Protection Act, whose passage in 2010 was a legislative response to the financial crisis of 2007–08.
� CFPB is responsible for consumer protection in the financial sector. CFPB jurisdiction includes banks, credit unions, securities firms, payday lenders, mortgage-servicing operations, foreclosure relief services, debt collectors and other financial companies operating in the United States.
� The CFPB was established as an independent agency. � CFPB sometimes uses UDAAP (Unfair, Deceptive or Abusive
Acts or Practices) under Dodd-Frank in order to prevent misleading, causing substantial injury or taking unreasonable advantage of a consumer’s lack of understanding of a financial transaction.
� It is anticipated that CFPB will expand its jurisdiction within the healthcare industry, regarding both 501(r) and for-profit hospitals. Also, plans to unveil additional rules and regs for Third party collection agencies in 2018.
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SOL & DON
� Arkansas Medical Statute of Limitations- is only 2 years from date of last service or last personal payment. Open accounts are 3 years while written contracts 5 years.
� Doctrine of Necessaries- until 2011, husbands were responsible for his bills, wife’s necessary bill and biological children’s necessary bills. Act 1183 of 2011, abolished this practice.
Effectiveness� Why can’t an agency collect my money?
Bad information (registration issues, mail-returns, disconnected phone, etc…)
Not suit-worthy (unemployed, too small to sue, SSI, Disability, Unemployment benefits, self-employed, too old to sue, bankrupt, deceased)
Really aged at time of placement. Statistically, the older the account is, the harder to recover. Potential for recovery significantly drops off at 180 days old.
Not allowing your agency to file suit when necessary. Your customers know who files suit and who doesn’t.
*Remember, liquidation is approximately 7%. Therefore, 93% of what is placed goes uncollected.
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Credit Reporting� What are the advantages of Credit Reporting
my accounts?Credit Reporting is good for 7 years from
date of delinquency. So, if you are unable to collect now, you may be able to in the future.
New rules as of September 2017 regarding Medical Debt Reporting.
a) can’t report until account is at least 180 days old.
b) if account is paid by insurance, must delete it.
BBB� Do you respond to Better Business Bureau (BBB)
complaints?
Due to the risk of inadvertently disclosing confidential information protected by HIPAA, the Gramm-Leach-Bliley Act and information protected by the attorney-client privilege, Professional Credit Management (PCM) does not respond to Better Business Bureau inquires. PCM does respond to every inquiry by any law enforcement agency, such as a state Attorney General, authorized to investigate debt collection services. When responding to official inquiries, PCM attempts to disclose only information required or permitted by law. We would request that this matter be closed.
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Calling Cell Phones� I provided my agency with good phone numbers,
why can’t they use technology (auto-dialer) to call them?
Under TCPA, you must have expressed consent to call anyone’s cell phone with automation.
It is imperative that you incorporate consent language in your Conditions of Admissions and obtain the guarantor’s signature.
*There is currently a push from FCC that encourages the phone providers to create “call-blocking” techniques to prevent legitimate business calls from being received.
Cell phone consent sample language� VII. COMMUNICATIONS REGARDING MY ACCOUNT: initial
here:________
� I agree that the facility, or any other collection or servicing agency or agencies retained by the facility (together referred to hereafter as “collectors”) to collect any money that I owe to the facility may contact me by telephone or text message at any number given by me or otherwise associated with my account, including but not limited to, cellular/wireless telephone numbers which may result in my incurring fees for the call or text message. I understand, acknowledge and agree that the collectors may contact me by automatic dialing devices and through pre-recorded messages, artificial voice messages or voice mail messages. I further agree that the collectors may contact me using e-mail at any e-mail address I provide to the facility or is otherwise associated with my account.
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Deceased� Notify your agency when you are aware
of a deceased patient. Will need the date of death and/or copy of death certificate.
� Be sure to notify your agency about any estate information you may receive from family or the attorney for the estate. In some cases, a claim can be filed and some money recovered. There is a pecking order of claims.
Bankruptcy � Primarily two types of Bankruptcies, Chapter 7
and Chapter 13.
� In either case, must not bill patient or ask them to pay. This violates the automatic stay provision. Severe consequences for violating.
� Notify your agency immediately of the filing. In some cases, claims can be made on Chapter 13 filings and some monies can be recovered.
� Chapter 7 is complete write off.
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Questions/Comments
� Thank you for you valuable time today! Feel free to call on anyone of us today in the event you have additional questions.
� We appreciate the opportunity to support you and HFMA.
� We count it a privilege to serve your accounts receivable needs.
