Precollect Letters

What is a "precollect" letter?

Question: What is a "precollect" letter?

Answer: A precollections letter is the final warning that a patient receives before a delinquent account is turned over for formal action by a collections agency. Many practices send this letter themselves, on their own letterhead, but recently more practices have realized that patients are more likely to pay immediately when they receive a letter from a collections agency, rather than from a medical office. So, since a medical office can't misrepresent itself as a collections agency, many are hiring real collectors to send this letter, paying only $1 or so if the patient pays right up. The practice doesn't start to pay the standard commission (typically 20 percent to 35 percent), until the account goes into the regular collections process.

Related Videos
The importance of vaccination
The fear of inflation and recession
Protecting your practice
Protecting your home, business while on vacation
Protecting your assets during the 100 deadly days
Payment issues on the horizon
The future of Medicare payments
MGMA comments on automation of prior authorizations
The burden of prior authorizations
Strategies for today's markets
© 2023 MJH Life Sciences

All rights reserved.