Robbing winnings from gambling? States create windfall databases for debt
Many health care providers are looking at a relatively new change in state law that ensures jackpot-winning casino and racing players pay off their debts. Iowa is one of the few states that make sure that those who make $1,200.00 or more do the right thing and pay creditors. Whether it’s for child support payments, traffic tickets or other types of liabilities, states are matching winners against a debt database and flagging any accounts that show up as debtors. Other states that use this debt collection method include Colorado, Indiana, Louisiana, New Mexico, West Virginia, and New Jersey.
Medical debt in the health care industry
This method, enabled by increasingly powerful technologies for data mining, can be a resource for struggling doctors and hospitals who simply do not earn revenue for the services provided. Many medical companies do not get a high percentage of the amounts that are billed to patients. This “pay gap” for medical practices and healthcare facilities is due to many reasons: Even in today’s climate, many healthcare billing offices still follow the old model of billing insurance first, patient second. Part of the issue also revolves around contractual services and the number of insurance providers a medical office must keep track of, in addition to staffing challenges.
The results: more avenues for debt collection
At first glance, recent changes in many states seem more focused on withholding government revenue than helping private companies collect debts. However, that may change as debt database tools set up to collect state or social service bills become resources for medical providers who need to recover money from non-paying patients. This is particularly likely for any care facility that is supported by the state or connected in any way with a state government or state entitlement programs.
Collections for Medical Businesses
The idea that state governments will control consumer debt, including debt related to state government, helps doctors and hospitals with the ‘patient-focused’ aspect of collections. Many patients, frustrated with the intricacies of billing, or simply unable to pay, default on their medical bills, leaving the provider with even less revenue. By tying debt to windfalls, such as gambling winnings, states help businesses or other parties rightfully collect what is owed to them. This has the potential to benefit a medical provider, but there is also a larger problem that doctors need to solve.
Beyond seeking outside help with billing, physicians must realize that, in many cases, they already have the means to collect more from those receiving services. Top performing offices are proactive in collections and engage with a consultative approach on a consistent basis. They talk to patients before services are provided, before bills are sent to a third-party collector, and can even negotiate payment for more revenue quickly. Think about how your office is closing the revenue gap and make sure you’re set up for success in 2012 and beyond.
