Securing overdue payments from clients in healthcare staffing is a critical aspect of maintaining a stable financial operation. Implementing a recovery system for company funds is essential to ensure that outstanding debts are collected in a timely and efficient manner. In this article, we will explore the three phases of the recovery system and provide key takeaways to help healthcare staffing companies navigate the process effectively.
Key Takeaways
- Implementing a recovery system is crucial for healthcare staffing companies to secure overdue payments from clients.
- Phase One involves initial recovery steps such as sending letters to debtors and skip-tracing to obtain financial and contact information.
- Phase Two includes legal action and attorney involvement, where demand letters and direct contact with debtors are initiated.
- Phase Three offers recommendations and costs, including the option to proceed with litigation or close the case based on recovery likelihood.
- Understanding the costs and rates associated with recovery systems is essential for making informed decisions on pursuing overdue payments.
Recovery System for Company Funds
Phase One: Initial Recovery Steps
Within the first 24 hours of initiating Phase One, a multi-faceted approach is deployed to secure overdue payments. Immediate action is taken to send the first of four letters via US Mail, ensuring the debtor is aware of their outstanding obligations. Concurrently, cases undergo skip-tracing and thorough investigation to gather optimal financial and contact information.
Efforts to contact the debtor are relentless, with daily attempts encompassing phone calls, emails, text messages, and faxes. This aggressive contact strategy persists for 30 to 60 days, aiming to negotiate a resolution. Should these attempts not yield results, the process seamlessly transitions to Phase Two.
The goal is clear: engage with the debtor swiftly and persistently to facilitate prompt payment and avoid escalation.
The initial phase is critical, setting the tone for the recovery process. It’s a balance of firmness and professionalism, designed to recover funds without damaging client relationships.
Phase Two: Legal Action and Attorney Involvement
When internal recovery efforts falter, the legal phase commences. An attorney within the debtor’s jurisdiction is engaged, brandishing the weight of the law. Immediate action is taken: a demand letter, followed by persistent contact attempts. Should these efforts not yield results, a critical juncture is reached.
- The attorney drafts and sends a series of letters on law firm letterhead.
- Concurrently, phone calls intensify in a bid to settle the debt.
At this stage, the path forks: persist with legal pressure or prepare for litigation. The choice is stark, the implications significant.
Costs become a tangible factor. Litigation isn’t free, and upfront fees apply. These range from $600 to $700, typically reflecting court and filing fees. A lawsuit then seeks to recover all monies owed, inclusive of these costs. Failure to collect post-litigation leads to case closure, with no further financial obligation to the firm or attorney.
Phase Three: Recommendations and Costs
Upon reaching Phase Three, our firm provides clear-cut guidance. If the likelihood of recovery is low, we advise case closure, incurring no fees. Conversely, should litigation be recommended, a pivotal decision awaits you.
Deciding against legal action allows for claim withdrawal or continued standard collection efforts without cost. Opting for litigation necessitates upfront legal fees, typically between $600-$700, based on the debtor’s location. These fees empower our affiliated attorney to pursue all owed monies.
Should litigation prove unsuccessful, rest assured, no further obligations to our firm or attorney will arise.
Our fee structure is competitive and varies with claim volume and age. Here’s a snapshot:
| Claims Submitted | Accounts < 1 Year | Accounts > 1 Year | Accounts < $1000 | Attorney Placed |
|---|---|---|---|---|
| 1-9 | 30% | 40% | 50% | 50% |
| 10+ | 27% | 35% | 40% | 50% |
Remember, our goal is to secure your overdue payments efficiently and ethically, minimizing both your financial burden and time investment.
Frequently Asked Questions
What are the initial recovery steps in Phase One?
The initial recovery steps in Phase One include sending letters to the debtor, skip-tracing and investigation, and attempting to contact the debtor for resolution through various communication methods.
What happens if the possibility of recovery is not likely after thorough investigation?
If the possibility of recovery is not likely after thorough investigation, we will recommend closure of the case, and you will owe nothing to our firm or our affiliated attorney for these results.
What are the options if the recommendation is litigation?
If the recommendation is litigation, you have the option to proceed with legal action or withdraw the claim. If you proceed with legal action, you will be required to pay upfront legal costs. If you decide not to proceed, you will owe nothing to our firm or our affiliated attorney.
What are the upfront legal costs for proceeding with legal action?
The upfront legal costs for proceeding with legal action typically range from $600.00 to $700.00, depending on the debtor’s jurisdiction. Upon payment of these funds, our affiliated attorney will file a lawsuit on your behalf for all monies owed.
What are the collection rates for accounts under 1 year in age?
For accounts under 1 year in age, the collection rates are as follows: 30% of the amount collected for accounts under $1000.00, and 40% of the amount collected for accounts over $1000.00.
What are the collection rates for accounts over 1 year in age?
For accounts over 1 year in age, the collection rates are as follows: 27% of the amount collected for accounts under $1000.00, and 35% of the amount collected for accounts over $1000.00.
