Medical debt recovery agencies take on clients to recover medical debts. The main aim of the debt recovery services agency is to maintain the good reputation of their client, and the company's relationship with the medical debtor; as these relationships are important for the good reputation of each medical institution. In most cases the debtor is an employee of a medical institution and has an agreement with that medical institution to repay its debts. These agreements are usually legally enforceable.
This agreement between the medical care provider and the employee, generally covers medical bills that are paid on time or that are still payable on an agreed period of time. Such agreements also cover other costs associated with the patient care. In either case, medical debt collection is one way that the hospital keeps the patients it owes payments on, and one way it ensures that the payment is made. It can also be seen as a form of passive collection. However, the medical care provider maintains the legal responsibilities towards the patient. There are many reasons why medical debt recovery agency's collect these medical bills. Many medical institutions have been forced to shut their doors because they have run out of money. This would leave the facility facing a bankruptcy filing. Alternatively, when a facility is no longer financially viable, the facility could face closure and loss of all its assets. Medical bills cannot be sold and therefore are more profitable to medical debt recovery agencies. As a result, collection agencies are often seen as a better option than hospitals, financial institutions, or insurance companies. When a person owes a bill, the first step in the process is to contact the supplier or payer and collect the funds. The supplier or payer is then instructed of the delinquent accounts. The dental debt collection agencies generally have a team of bill collectors that visit the offices of the suppliers and billers. They then attempt to collect on these delinquent accounts. There are two main ways to collect unpaid medical bills. One is by using aggressive collection tactics and the other is by using non-traditional methods like debt collection letters. Since medical suppliers and payers are required by law to pay these bills, collection agencies are not permitted to harass them in any way. However, this does not mean the medical provider or payer has immunity from being sued. If a supplier or payer continues to ignore the outstanding bills, the case can go to court. Collection agencies can get in touch with customers and even with doctors themselves to recover these bad debts. The doctors do not necessarily admit that they are liable. The implication here is that the healthcare provider is responsible for paying for any bad debts. In cases like this, collection agencies can serve legal action against the doctor or hospital in order to reclaim their money. However, this will be very rare since these healthcare providers have already settled the medical bills. To understand this topic better, read this article: https://en.wikipedia.org/wiki/Debt_collection.
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