Second placements are the practice of transferring overdue accounts that have had little to no movement from your primary collection agency to a new collection partner. While this strategy has been utilized for ages, few health providers recognize just how effective it can be at getting movement on stagnant accounts and recovering revenue that might be otherwise written off. Today we are going to offer a brief explanation of what kind of accounts are the best candidates and the 3 key advantages of including second placements in your collection strategy.
What makes an account eligible for seconds?
Accounts that have been stagnant for over a year are excellent candidates for second placement. Once the account has aged to 120 days in house and accounts have been worked an additional 6-8 months by your primary agency many organizations are tempted to write off the account as uncollectible — but this leaves significant money on the table. A new agency will have a new approach and fresh start, unencumbered by the front-end loaded collection process that is common for new accounts placed with your primary agency. Aged accounts for healthcare have the benefit of time. We know that often medical expenses are unanticipated, so naturally, it can take longer for patients to catch up.
3 Key Advantages of Seconds as a Strategy
Time: As mentioned above, extending the collection period for medical debt gives patients time to recover— physically and financially. We utilize a robust monitoring system that tracks patients’ ability to pay and have found that positive improvements typically come between the 12- and 24-month mark after the patient’s service date.
Evaluation: Are you getting the best service from your current collections partner? Participating in a seconds program offers an opportunity for a trial run with a new agency and a way to evaluate how your current service compares. If you notice a big lift in recovery after placing with a secondary agency, it’s likely your primary agency is not working accounts after the initial placement.
Competition: Participating in second placements establishes a clear deadline for performance that should motivate your primary agency— Movement or lose it. Healthy competition between agencies can pay off. Often, after adopting a strategy that includes a secondary agency, clients see a boost in recovery percentages from their original agency.
Considering implementing a second placement strategy? Contact us today for a complimentary consultation.