July 19, 2011


Hi Jennifer,

Thank you for sending that email out last Thursday on paying a billing company a percentage. Since most insurance companies refuse to pay for OBS claims, and if an initial attempt to collect on the part of the OBS facility fails, could it then be sent to a billing company on a percentage basis? Does a billing company have to go through a registration or other process in order to qualify as a collection agency?

Dr. T


Yes. Collection companies - ones involved in "collection activity" above and beyond sending invoices or overdue notices - are required to be licensed in pretty much all local jurisdictions that I'm aware of, and once licensed they are required to adhere to a smattering of federal, state and local regulations governing their operations. For instance, collection companies are only allowed to initiate collection efforts during certain times of the day, and those efforts are required to be accompanied by certain notices that the company is looking to collect a debt owed. The particulars required for operation are taxing. So, as I indicated in the prior email, you really can't take a "billing claim" and smack a "collections" stamp on it and send it out for processing to your third party biller.

Another avenue many utilize to assist with collections is to engage a law firm. Our firm does have a collections department and I would be happy to speak with you regarding our collection process should you have the need.


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