Planned Collection Time = Equals More Money Collected

IL- Past Due Accounts

Collection Management

Guide

Planned Collection Time = Equals More Money Collected

****Front End Collection Prevention Checklist****

Key processes you must have in place to make sure your facility is going to get paid for services?

_____1. Verify Census Accuracy and Timely Communication between AR Department and Facility is happening.

______2. Verify Contracts are completed and signed timely.

______3. Verify AOD A/R Notes are updated at least every 30 days and as Collection Action is completed.

______4. Verify Private Statements are reviewed and correction done if needed at time of Pre-bill.

______5. Verify your Facility's is using the AOD AR Collection Report to Identify and Manage your facility's Past Due Private

Accounts, Account Receivable Trends, and Collection Letter Process and to plan your facility's Collection Actions & Follow-

up throughout each month.

****Managing Your Past Due Accounts Weekly****
The Following advice below will help improve the effectiveness of your Past Due Collections – there is no magic bullet in debt collection. Every debtor is different. What works really well with one, may get you nowhere with another. Listen carefully to the debtor and you will pick up clues to the best way to handle each situation. Please call or email me anytime to discuss the next action to take on your Past Due Accounts.

How to Manage your Past Dues Accounts:

Plan your Past Due Collections on Monday-Wednesday so when unexpected events arise your collections are already done or can be rescheduled to later in the week.

Verify Past Due Accounts Balances are correct and you understand the charges on the resident’s statements during Pre-Bill.
All accounts over 30 days Past Due must be reviewed by the Administrator to start an Involuntary Discharge for nonpayment. Contact Jason Crowder in Legal at Home Office with questions.
Prioritize your accounts by reviewing your facility’s Past Due accounts for Current Residents first- then most Recent Discharge Residents with highest balances - then continue to work down your discharge residents in descending balance order.
Print and Review your facility’s AOD AR Collection Report for PRIV (customize the report by change the settings of Payors, Balance Ranges, Notes Dates Range, contact information , ECT ) to create Past Due Collection To Do Lists. Determine When and What the facility need to do next to collect Past Due?
Track your Collection Follow-ups and Results in your facility’s AOD Notes with updates at least every 30 days and weekly for priority accounts. Include in your notes, what collection action you did (call, send letter, ECT. who you contacted and what the contact’s response was.)
Plan Daily & Weekly Collection Follow-up on Past Due Accounts of phone calls, letters, face to face, ECT. Use the Six Collection Calls Tips.
For all accounts the facility has exhausted collection actions of calls, letters, addresses and estate searches for- Review the account with your Regional Director and completes a Request for Review of Facility Exhausted Collection Account Form with all required documents. Send completed form to (Gail McGinnis) Home Office Collections for review for possible legal action or write off approval with a copy of all required collection supporting documents. The Account must be reviewed by the AR Department to verify account balance is correct before submitting for Write off - Enter a AR Note in AOD verifying review was completed and why account is being submitted for write off.

Questions you should know the answers to at the end of each week about your Past Due Accounts:

Week One: What past dues accounts are unpaid from the prior month? What Exhausted Collection Accounts have been submitted for review? What accounts need estate claim research?
Week Two: What are your High Priority Private Past Dues Accounts under 6 months old? What Past Due accounts expected to have paid by the 10th remains unpaid?
Week Three: What accounts expected to have paid by the 10th remains unpaid?

Week Four: What are your Priority Past Due Accounts over 6 months old? What accounts expected to have paid by the 10th remains unpaid?

1) Do all accounts with Past Due Balances have a note detailing the facility's Collection Action at least every 30 days?

2) Are the facility’s Past Due Account balances and addresses on all statements accurate for each resident?

3) Is the facility sending the statements and collections letters to the person who signed the contract as Responsible Party and has control of the Resident’s income? Accounts that need address researched: Send an e-mail to Gail for an address search for Resident or Responsible Party. The Information needed to request address search is – the resident legal name, date of birth, last know address (not your facility’s) and Social Security number.

4) Is the facility making daily deposits timely?

****AOD AR Notes****

All accounts with Past Due Balances must have a note detailing the facility's Collection Action at least every 30 days. AOD AR Notes should be update same day or within 48 hours of collection action.

The AOD Note must include the following Information:

1) What collection contacts (in person, phone calls, emails, and letters contacts) were made by the facility’s Administrator and BOM with the Resident, Family Members, Responsible Parties, Trustees, Attorneys and ECT?

2) What were the results of the collection actions?

3) When and What does the facility need to do next to collect Past Due?

Expired Residents AOD Notes:

Should include the date of death for expired resident and details of all collection efforts for researching for an Estate Legal Notice in the local newspapers, contacting the attorney listed on any Power of Attorney Documents and contact of the County Circuit Clerk Office (Counties where the resident expired or lived prior) to check to see if a Probate Case has been filed, or contact Responsible Party. Facilities with counties that use the Judici Court System can use the Judici website (judici.com) to research for probate cases that are filed for estates. It is possible that an estate claim may not be open until 6 to 12 months after the resident expires. At least monthly follow-up should be done to check with the Probate Court. (If an estate has been open email Gail McGinnis Probate Estate Case Number, County where case is filed and Itemized Statement for filing a claim.)

Address Search: Accounts that need current address researched: Send an e-mail to Gail for an address search for Resident or Responsible Party. Include as much of the following information as possible with the requested address search – the resident or responsible Party’s legal name, date of birth, last known address ( Not facility’s) and social security number.

Request for Review of Facility Exhausted Collection Account Form

Complete the Request for Review of Facility Exhausted Collection Account Form and send to (Gail McGinnis) Home Office Collections for review for possible legal action or write off approval with a copy of all required collection supporting documents and an itemized statement for the account. The facility must have exhausted collections actions and completed estate research (if resident has expired) on the account before submitting. The account balance must be accurate. Enter an AOD Note into AOD documenting all steps the facility has taken to collect the past due account and verifying review was completed with Regional Director. Include in the AOD Note, why account is being submitted for write off. The facility should continue phone calls and collection letters until an AOD note has been entered indicating Home Office Collections is handling the account or the account has been approved for write off .

Request for Review of Facility Exhausted Collection Account

Facility Name: Date:

Resident Name:Resident #:

Admission Date: Check Box if Medicare Part A Co-Insurance:

Resident StatusResidentExpiredDischarge/Date

Write Off Amount:Payer Type:Dates of Service:

Resident's last known address and phone # (Do not use facility’s address):

Did the facility complete the entire Collection Letter process? If no, why?

If Resident Expired, is there an Estate open? What County or Counties did they live in?

What step has been taken to research if an Estate will or has been open?

If balance is unpaid Private Liability, when was caseworker last contacted to request Adjustment?

If Medicaid denial or untimely OBRA screening, what appeals or other steps were taken?

Responsible Party Name (per contract) and POAs current (last known) address and phone#:

What is the current Balance in the Resident Trust Account?

Detail steps taken to collect past due balance:

Scan complete Resident’s BIO, contract, any POA, collection letters, statements and other documents with this completed form to Gail McGinnis. If no contract & collection documents are available, what steps were taken to locate missing documents?

My signature below verifies this Past Due Account has been reviewed and approved by the facility's Regional Director and all facility Collection Efforts Have been Exhausted prior to submitting.

Administrator Signature Home Office Write Off Authorization Signature

DateDate

(Corporate Use) Lexis Search completed on ______Effective 11/1/2013

Understanding, Reviewing, Identifying and Researching Trends

Using the AOD collection Report

Use the AOD Collection Report with the following settings to identify and schedule follow-up on Past Due PRIV Accounts from the prior month: Look for past due balances in the current, 1-6+ months on the AOD Collection Report.

Use the AOD Collection Report with the following settings to identify and schedule follow-up on Past Due Priority Accounts Over $5000.00 Accounts: PRIVATE HIGH PRIORITY ACCOUNTS: Private, accounts targeted for (ID) Involuntary Discharged due to No Private payment received in the last 30 days.

Use the AOD Collection Report with the following settings to identify and schedule follow-up on Past Due ACCOUNTS OVER 6+ MONTHS Accounts:

Understanding the AOD Collection Report

1) Payer Type, 2) Last payment - Date – Amount, 3) Total due, 4) Pre-Billed, Aging months , Unit #/Status, Admission /Discharge Dates

Identifying Trends Using the AOD Collection Report

Use the AOD Collection Report to identify and to review AOD Notes for timely Past Due Account Collection follow-up every 30 days. Are facilities making Collection Calls- not just sending Collection Letters? Are both the ADM and BOM doing collections? Are the collection actions being taken by the facility resolving issues preventing payment and resulting in the facility receiving payment of the Past Due Account Balance?

Use the AOD Collection Report to select the correct payer when entering an AOD Note. Make sure you enter notes in the correct payer – the note needs to go with the balance, so whichever payer has the balance - that is, the payer that should be used when you enter the note. If you put your note in a payer that has no balance, the note will not print on any reports.

All past due accounts should have a payment made within last 30 days.

Review the last Payment date here.

Use the AOD Collection Report to identify credits or debits patterns on resident’s accounts. A pattern of credits or debits can indicate:
Facility is not collecting resident monthly charges.

Payments applied to the incorrect month or to the wrong resident. Charges may need to be reviewed and adjusted by the AR department to correct the account.

Use the AOD Collection Report to identify discharged resident past due collection follow-up. Schedule collection follow-up.

Review the AOD Collection Report to identify Questionable addresses and Unit/Statuses on the AOD Collection Report. This is the address where the resident statement is going to. Verify this is the responsible party and the person who has control of the resident’s income. Contact AR to make any changes.

Use the AOD Collection Report to identify and schedule follow-up on risky responsible party situations (SELF) indicating facility is having resident sign as Responsible Party on contract.

Six Tips for Making Collection Calls that Get Results

For most people, picking up the phone to call a customer and ask them for money isn’t the highlight of their day. Do not place collection calls dead last or let them fall off the "to-do list" altogether.
Basically, the truth is that making collection calls takes most people out of their comfort zone. They don’t feel confident with the process, so they fear embarrassment or failure.
If collection is part of your job responsibilities, here’s some good news. You can become more comfortable and more successful by following a few tips.
#1 Always Be Prepared – Generally and Specifically
NASCAR great, Bobby Unser, is credited as saying, "Success is where preparation and opportunity meet." I couldn't agree more. You can never be over prepared when it comes to tackling a collection call.
Be Ready to Handle Excuses
Before making your next collection call, take time to compile a list of common debtor’s excuses, matching them with effective rebuttals. Write them down on file cards or include them in your computer scripting. Group them by category and keep them handy. Exchange ideas with others facilities. Then, when the debtor tries to end the call by offering an excuse, you can take control by countering with a well-thought out reply and returning to the purpose of your call -- collecting the debt.
Here are some examples to get you started:
Customer: The check is in the mail.
Collector: Great! May I have the check number, amount and date it was mailed so I can ensure it is posted correctly?
Customer: I have a cash flow problem right now.
Collector: I understand that times are difficult. Can I set you up on a payment plan, or can you make at least a partial payment today?
Customer: I don't have a copy of the statement.
Collector: I'll fax or email the statement over right now. Will you be mailing the check today?
Arm Yourself with the Facts
Before you pick up the phone, It's critical that you have all the specifics of the debt you’re calling about. Having the facts in front of you keeps you in control. You don't want the conversation to get derailed by a question you can't answer. Many debtors know how to use this to their advantage. Suddenly they can't discuss payment on their account without details you don't have and they don't "have in front of them" either. So, the call is over.
If you hear yourself saying, "I'll have to get back to you on that," you've just given the debtor an extension without a commitment to pay – and you'll have to start from square one with him when you call back.
At minimum, be sure to have the following in front of you before you make the call:

exact amount owed
Date of services
What charges are for: private liability, Insurance and Medicare Co-pays, Transportation, cable, ECT?
Payment due date
Statements, even those not yet past due

Know Who You're Calling
It's also helpful to brief yourself on the Resident or Responsible Party’s payment record with your Facility, as well as any other payment history you may have available to you. Do they usually pay on time? Are payments getting slower and slower? Is past-due payment uncharacteristic of this customer? Is the resident’s funds depleted and the resident needs to apply for Medicaid?
#2 Think Positively
Your mental state has a strong impact both on how you handle the debtor and how they respond to you. Treat each call as if it was your first call of a very good day. Put a smile on your face. If you were irritated on the previous call, take a few minutes to calm yourself and start fresh. The debtor will respond to your tone. Your upbeat mood will be contagious and you are likely to get a more positive response from the debtor.
#3 Speak Professionally and Authoritatively
Most of us take our speaking voices for granted. But the tone, pitch and even the speed at which you talk can have a powerful influence on your listener. Think about typical news anchors or radio commentators. They have voices that command attention. With a little effort, you can develop one too.
Try recording a general collection call opening and then listen to yourself. Make adjustments as needed, and try again. This will not only improve how you come across on the phone, it will also build confidence. It does take a little time and extra work, but remember success is strongly linked to preparation.
Here are a few hints that might help:

don't chew gum or drink when you're on the phone
speak a bit slower and enunciate
use a lower pitched voice
pause more often
make sure you pronounce the ending consonants of words and don't slur
smile while you talk -- although the person on the end of the line can't see it, they will hear it; and everyone responds more openly to a smile than to a scowl

#4 Take Control and Don't Let Go
You can manage the call in such a way that you control the debtor's response. In addition to what we already mentioned about preparation and voice, here are some other tricks of the trade:
Address the debtor by name throughout the conversation. This shows respect on your part and commands their attention. Be careful not to overdo it through, or it will start to sound contrived and annoying.
Ask open-ended questions. Try to get the debtor to give you as much information as possible. For instance, bank information is critical, yet many debtors may not want to share it. Instead of coming straight out and asking, "Where is your account?" Try "Will you be sending a check or a money order?" He will usually say "a check." You respond, "That's fine. So we don't miss it, what bank will it be drawn on?"
Listen carefully and take notes. You will get clues to whether the debtor is serious about paying. You'll also have ammunition for your next call and will be ready to counter any excuses that may have been tried in the past.
Use silence. Count slowly to five before responding to a debtor statement, and wait several seconds after asking a question. Leaving blank spaces in the conversation compels the debtor to fill them in.
Stay focused. Some debtors will try to get you off track by complaining about service, or somehow shifting the blame for their delinquency to you. Be polite. But always bring them right back to the point of your call -- getting paid the money rightfully due your facility.
Don't let the debtor manipulate you. A screaming debtor could be using anger as a ploy to get you upset and end the conversation. At the very least, you're not going to get anywhere with someone that’s angry.
If a debtor starts yelling or using abusive language, stay calm. Try reminding them that you cannot help resolve the situation if they are yelling.
If that doesn't work, say something like, "This obviously isn't a good time for you. When can I call you back?"
Or you could try a tactic one of ABC-Amega's collectors’ employs. Say, "Could you hang on a moment? I can't understand what you're saying." Put the phone down for several seconds, and then pick it up again stating, "I'm back." That few seconds of silence will often calm the debtor down and you can get on with the discussion more reasonably.
#5 Nail Things Down
A call that doesn't result in a commitment from the debtor is a wasted call. If you can't get them to commit to payment in full, get a promise of something -- a partial payment or a call back with a payment date. Make sure you control the timing. Don't ask, "When can you get back to me on this?" Rather, ask "Will you be calling me by Wednesday?"
Don't hang up the phone without summarizing the results of the call: their commitment; your expectations; and, the consequences if your expectations are not met. Emphasize the urgency of the matter. It's easy for the customer to forget your call as soon as he puts down the receiver, especially if they don't think you were really concerned about the outcome.
Stress the importance that the debtor calls you back on the date they promise payment -- to let you know the check has been sent. If they fail to call, the payment likely didn't happen. You won't waste time waiting for a check that was never mailed.
And finally, if the debtor doesn't follow through on their commitment, make sure you follow through on the consequences. If you don't, they will never take you seriously.
#6 Learn to be Flexible
Following the above advice will help improve the effectiveness of your collection calls – but there is no magic bullet in debt collection. Every debtor is different. What works really well with one, may get you nowhere with another. Listen carefully to the debtor and you will pick up clues to the best way to handle each situation.
*****

Revised 12/01/2014