In the private healthcare industry, unpaid medical fees can pose a significant financial burden on medical groups.
Whether due to patient non-payment or unwarranted insurance delays, outstanding debts can disrupt cash flow and hinder the ability to provide high-quality medical services.
This case study explores how Federal Management helped a prestigious private medical group recover unpaid medical fees efficiently and ethically, ensuring financial stability while maintaining patient relationships.
The Client
Our client, a renowned private medical group with a chain of clinics and hospitals across the UK, specialises in high-end medical treatments, including elective surgeries, specialised consultations, and diagnostic procedures.
Despite their commitment to delivering top-tier healthcare, they faced a growing financial concern due to unpaid medical fees.
The Challenge: Growing Financial Concern Due to Unpaid Medical Fees
The medical group encountered several challenges related to unpaid debts:
- Increasing Number of Unpaid Invoices: Many patients either failed to pay their bills post-treatment or assumed their insurance would cover the costs, only to find out later that their claims were denied or only partially covered.
- Administrative Burden: The in-house team struggled with the time-consuming process of chasing outstanding payments while managing day-to-day operations.
- Legal Complexities: Navigating patient rights, insurance policies, and debt collection regulations required specialised expertise to ensure compliance with UK laws.
- Reputation Concerns: The client wanted to recover debts while maintaining a professional and compassionate approach to avoid damaging their reputation.
The Solution
1. Comprehensive Debt Analysis and Strategy Development
Our team conducted a thorough analysis of the medical group’s outstanding debts, segmenting them based on:
- Age of the debt (recent vs. long overdue)
- Payment history of patients
- Insurance claim status
This allowed us to tailor our collection approach based on patient profiles, ensuring a higher recovery rate with minimal disputes.
2. Patient-Centric Communication Approach
We implemented a multi-channel communication strategy, including:
- Personalised Letters & Emails: Informing patients of their outstanding balances in a professional yet empathetic manner.
- Phone Call Follow-Ups: Offering clear payment options and explaining any misunderstandings regarding insurance claims.
- SMS Reminders: Gentle nudges that increased response rates significantly.
3. Mediation & Payment Plans
For patients facing genuine financial difficulties, we applied due diligence and requested patients to complete an income and expenditure form. This facilitated realistic structured payment plans, making it easier for them to settle their accounts.
This approach not only improved collection rates but also maintained goodwill between the medical group and their patients.
4. Legal Compliance & Ethical Debt Collection
Adhering to the Financial Conduct Authority (FCA) regulations and GDPR compliance, our methods ensured:
- Respectful and non-aggressive collection practices
- Full transparency regarding payment obligations
- Protection of patient confidentiality
For cases where legal action was necessary, we provided the client with expert guidance on court proceedings and enforcement options, ensuring every step was conducted lawfully and ethically.
The Results: Over 85% of Outstanding Debts Recovered
1. Significant Increase in Recovery Rates
Within the first six months of our partnership, the private medical group recovered over 85% of outstanding debts, a substantial 300% improvement compared to their previous in-house efforts.
2. Reduced Administrative Burden
By outsourcing the debt collection service, the medical group’s internal team was able to focus on patient care rather than chasing overdue payments.
3. Improved Patient Relationships
Due to our patient-friendly collection approach, the medical group received fewer complaints and maintained a high level of patient satisfaction, even among those who had outstanding debts.
4. Faster Insurance Resolutions
Through direct collaboration with insurers, delayed payments were expedited, ensuring the medical group received reimbursements more efficiently.
Conclusion
With our strategic, patient-centric, and compliant approach to debt collection we were able to achieve high recovery rates while maintaining strong patient relationships.
If your private medical company is facing challenges with unpaid medical fees, let us help. Contact our debt collection team today for a free consultation and find out how we can recover your outstanding debts while maintaining professionalism and compliance.
