Avoid the costly ‘Oxford Syndrome’

As the economy struggled on and on, the credit and collection manager at a large hospital system watched as the cash collected from written-off bad debt accounts nearly dried up. Just four years before, the health care system could rely on almost 10 percent recovery from delinquent accounts placed with an outside collection agency. Now, they were lucky to get 2 percent — that was a drop of more than $6 million a year! Had to be the economy, the hospital system managers decided. Patients just can’t pay during these difficult economic times. Trying to keep the home, utilities, car, kids and food just leaves nothing left for medical bills. The contracted collection service provider is a well-known and reputable company, and the hospital system bid out the contract to select the best service provider.