Why We Are Staying While Others May Leave (Please Read)

Navigating Changes in CA Medical Debt Credit Reporting

Recently, I received a phone call informing me that another collection agency had decided to no longer accept dental office debt under five hundred dollars. This new prospect was looking into our services and wondered if we operated the same way. In the past few years, changes have occurred with medical debt and its ability to report to credit reporting agencies; medical and dental debts under $500 have stopped being reported. Soon, credit reporting on medical debt will cease altogether. With this in mind, our current clients and future prospects may be wondering if, like some other companies, we will stop collecting medical and dental debt all together and only take commercial and consumer accounts. The simple answer is no. They might also think, “With these possible changes, is Tavelli Co. going to increase its rates on medical and dental debt?” Again, the answer is no.

Over the years, Tavelli Co. has become synonymous with protecting our clients’ brand reputation through excellent customer service and a unique style of compassion-based collections. While many know us as the go-to agency for commercial and consumer debts, we do not plan on stopping the collection of medical or dental debts. In fact, some of our best clients are in this field, and we’ve loved partnering with them over the years. Moving forward, our rates will remain the same, and we will continue to accept medical and dental debt. We expect many more companies to seek us out in the future for this reason. Debts will still be collectable, and many of these laws are subject to change. If services are rendered and payment is owed, we will continue to do our best to collect those debts for you. We aren’t going to punish our clients by changing our rates.

Some Things to Consider

With this in mind, your office may want to consider the following:

· Send accounts over sooner rather than later.

While we still recommend giving a reasonable amount of time for payment after receiving the first EOB and updating the amount owed by the patient. It is still important to note that technically the balance is owed on the date of service or based on the practice’s terms and conditions. Most companies expect payment once the insurance has been billed and the balance has been updated, as a courtesy. Following consistent practices will ensure that your business is at the front of the line amongst other creditors as well!

· Send us referrals.

Imagine knowing the best plumber in the world, offering incredible rates, who serviced your whole house and earned your trust around your family. Then, one day, they didn’t have enough business to continue their craft. While referrals are a great benefit to us, they may also help your business in the long run. With more accounts and quality clients, our business becomes more secure and less likely to “close shop” in the future. If you have enjoyed partnering with us over the years or found Tavelli Co. helpful, we greatly appreciate your referrals.

· Avoid just sending problem accounts.

As we always say, the timeline for sending accounts to collections should be based on a set schedule, not on the nature of your business’s relationship with its patients. This ensures a systematic process free from favoritism. We often find that the few clients who are displeased with us are those who lack a proper collections system and only send their most problematic accounts, which are already the least likely to pay. Or they are clients with a limited number of accounts. Now is the best time to review any accounts you have been waiting to send over.

· Our credit reporting systems will be updated with the new law changes.

This one is pretty self-explanatory, but for those wondering, our systems will be updated with the new laws in the future. Any updates with credit reporting will be integrated into our systems to ensure compliance.

The Concluding Point

The ultimate message here is that we will continue operating with our trusted medical and dental clients as we always have. If we do see any dip in the collection of medical or dental balances, we aim to make that up through referrals. While others zig, we zag. We will lean into medical and dental debt, even as others may walk away from it. Although the day is fast approaching when medical and dental debt won’t report to credit any longer, this won’t change our empathetic and compassionate approach towards your patients. It also doesn’t change the core principles behind how we run our business. If money is due, we will continue to collect it for you!

For more information or if you’re in need of a medical debt collection agency in San Diego, Los Angeles, or the Southern California region, contact us at (707) 509-5565. Tavelli Co. offers the flexibility to serve clients throughout both Northern and Southern California.

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Tavelli Co., Inc. has over 40 years of unparalleled experience in the debt collection and receivables management industry. Our mission is to achieve the right balance between getting clients paid and being empathetic to debtor circumstances, through implementing innovative practices, hiring experienced people, and improving business decisions through analytics. We provide peace of mind to all involved by collecting money with no complaints. Tavelli Co., Inc. takes the time to carefully listen to your customers and share their feedback with you through meaningful data and transparent communication, so you have access to the information you need to make quality decisions and improve your processes in the future. Contact us today and let the debt collection experts at Tavelli Co., Inc. help you set your business up for success.

IMPORTANT: Information provided by Tavelli Co., Inc., any employees of Tavelli Co., Inc., or its subsidiaries is not intended as legal advice and may not be used as legal advice. It is not intended to be a full and exhaustive explanation of the law in any area, nor should it be used to replace the advice of your own legal counsel.