About Medical Practice Debt Collection

What differentiates Medical Practice Debt Collection from other debt collection agencies?

Medical Practice Debt Collection is the product of a consulting company operating in the South African healthcare industry (Medical Practice Consulting) and a law firm specialising in debt collection (SBPE).

The services have been based on the experience gained by SBPE through the performance of debt collection but to the needs of the healthcare industry, as noted by Medical Practice Consulting, during the performance of consulting services.

The main fact that differentiates Medical Practice Debt Collection from other debt collection agencies is the active involvement of registered attorneys throughout the entire process of debt recovery as well as the collection thereof. This vastly improves the turn around time of bad debt recovery, due to the fact that cases do not have to be outsourced to a third party law firm, should legal actions be required - collections are administered by the very attorneys that would take legal action on behalf of you, the healthcare professional.

This also saves on debt collection costs, due to the fact that no additional attorney fees will be payable. All fees whether for litigation or claims is included in the debt collection rates charged by Medical Practice Debt Collection, due to the joint venture with SBPE. Please request a quote to obtain a MPDC fee structure applicable to your practice.

You and your patients will thus not have to deal with a number of different parties that usually constitute the process of debt collection and there will be no time delay will exist between the process of recovering the debt and having to go to legal action, should this be deemed necessary, due to the fact that all processes will be administered by SBPE Attorneys.

All MPDC clients also receive access to the MPDC website - www.mpdebtcollection.co.za whereby they can track the status of the process online. This means that you as healthcare professional will be able to ascertain the level of completion within the debt collection process at any time, be it for individual patients or for groups handed over for collection. Clients also receive e-mail updates regarding the level of completion of the debt collection process from MPDC at the start of each phase.

How does debt collection work?

Debt collection is the process whereby an agent (the debt collector) is contractually appointed to recover debt on behalf of a principal (the debt holder). Medical Practice Debt Collection will thus attempt to recover debt on behalf of the healthcare professional, who is the legal owner of accounts receivable. The agent is paid a service fee for services delivered, upon successful recovery of the debt.

At Medical Practice Debt Collection we believe that the only time that a cash outflow in terms of an expense can be justified is when the expense results in a larger cash inflow. This is why our fee structure is based on this principle - if we can't recover debt on your behalf, we won't charge for any service. This fee structure is designed to hold a 0% risk for the healthcare practice. The reasoning is that in the event that debt has aged and has become "bad" the amount will be expensed to the income statement due to unrecoverability which will reduce profits and will not have a positive effect on cash flow. In the event that Medical Practice Debt Collection would not be able to recover any of the debt, the healthcare professional would be in the same position as prior to the debt collection agreement, but won't be worse off, due to the fact that no fees will be charged for the delivery of services.

In the event that the debt collection does succeed, the healthcare professional will realise higher profits and positive cash flow.