How Do Debt Collection Agencies Work?

So, you’re tired of calling patients to remind them of their outstanding bills? Or are you constantly forgetting to follow up at the appropriate intervals after they visit your practice? Maybe you’re constantly getting sent to voicemail and having draining conversations with your patients. This leaves you feeling confused, frustrated, and unable to find the best repayment plan. Worse yet, your staff is grumbling about taking care of your collections and your recovery rate is far from ideal. 

As a result, you’re considering outsourcing your healthcare practice’s collections to a debt collection agency. This way you don’t have to deal with the headache they cause any longer. However, how do debt collection agencies actually work? And how can you be sure that hiring one will be the best thing for your practice?

In particular, healthcare debt collection agencies work in the following way:

Hiring a debt collection agency means that they become your vendor, and you form a partnership.


When you hire a healthcare collection agency, you’re forming a partnership with a vendor who will come alongside you to help you improve your practice’s collections and maximize your recovery. Great healthcare collection agencies truly want the best for their clients. They will work with you every step of the way to audit your existing collections processes, bringing their years of expertise and trained representatives to the table. In doing so, this will work to transform your collections into as painless a process as possible for your patients and your practice. 

You elevate your professional patient communication by having trained, outsourced representatives take over your collections.


While your staff may not be trained or experienced in effective collections, hiring a collections agency means you’re bringing in representatives who are trained in professional patient communication. Patients are incredibly more likely to positively report on their collections experience if they feel like they are heard, seen, and valued by the individuals they work with. Especially when working to establish the best repayment plan for their needs. This means that your patient-provider relationships are maintained or even elevated by positive customer service that your patients experience throughout the whole communication process. And as a healthcare provider, you know that this is huge for your organization. 

You experience superior recovery results with a debt collection agency.


Debt collection agencies exist to maximize organizations’ recovery and ease the pain that often accompanies the debt collection process for your patients. To sum up how debt collection agencies work, they partner with your organization typically for a percentage of your collections. Then they work their magic by revamping your collections process with their software solutions, trained collections representatives, and experts. Debt collection agencies normally offer multiple repayment options to your patients. This allows them more avenues to repay you, resulting in a higher recovery rate. Since debt collection agencies specialize in maximizing recovery while maintaining or increasing satisfaction in your relationships with your patients, you can rest assured that your collections are in good hands. In return, this will free up some of your staff’s time to do other work.

Are you interested in achieving superior recovery and lightening your staff’s load when it comes to medical collections? Give Frost-Arnett a call at 1 (855) 287-7043. Improving healthcare organizations’ medical billing and collections processes is our specialty. We would be delighted to speak with you to learn more about how we can assist your organization and improve your bottom line.

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Founded in 1893, Frost-Arnett is a debt collection agency that resolves the patient-pay balance of accounts receivable for healthcare providers.


PO Box 198988
Nashville, TN 37219
1 (855) 287-7043


Mon-Thur: 8am – 7pm
Fri: 8am – 5pm CST