Analysis of the flaws in the litigation process when collecting on past-due medical accounts, and an alternative solution.

1. Why Amicable Debt Collection
Makes More Sense Than
Litigation
Receivables Management
Solutions
Since 1938

2. Medical debt collection is one of the most difficult and
challenging tasks to manage in the health care industry. More
than a third of all bankruptcies in the United States are directly
related to health care debt. If a patient is unwilling to pay
his/her bill, you are left with a crucial decision: to litigate, or to
pursue less aggressive collection processes. This slideshow
will help explain why choosing to work with a collection
agency may be the best decision for you and your company.

3. Consideration Before Litigation
• When considering the process
of a lawsuit to recover costs, it is
important to note that litigation
can be:
– Lengthy/Time Consuming
– Unsettling
– Risky
– Expensive
• An entire industry of lawyers
exists to defend medical
patients stung by lawsuits –
nothing happens quickly

4. The Negatives of Litigation
• While it is unfortunate, the fact
remains that litigation is often a
stressful and inefficient way to
collect on past due accounts:
– Trials can take months to schedule,
and often, many more months pass
before a judge will make a ruling
– Even if you, the health care
provider, win a favorable judgment
for the clinic, the patient may still file
for bankruptcy to avoid the debt
(this is a common strategy used by
debtors – and it often works)
– Whether you are able to collect your
accounts receivable through
litigation or not, the process nearly
guarantees that you will sever your
relationship with the client involved

5. Consider an Alternative Solution
• You have another option: collect past due
accounts through a collection agency, work
closely with patients to resolve their debts in
full, and completely cut-out the courtroom
• For health care providers, working with a
collection agency makes sense, as it avoids:
– Attorney fees
– Lengthy court battles
– The real threat, that nothing will ever be recovered
• Provider-patient relationships can be
maintained in collections, as they are far less
aggressive than litigation, allowing you a
much better opportunity to save the business
and personal relationships that you have
built with your patients over years of care

6. IC System Health Care
If you are happy with the performance of your current debt
collections process, great!
If you are interested in exploring another solution, our collections
experts at IC System would be happy to provide you with more
information, answer any questions you may have, and work
together with you to discover a method of collecting medical debts
that best tailors to the needs of you and your company.
For more information, please view our
medical collections website, access our contact
information, and view other content involving
medical collections at the link below:

7. Legal Disclaimer
No Attorney-Client Relationship Created through this
Presentation: Neither your receipt of information from this
presentation, nor your retention of I.C. System, Inc., or its legal
counsel creates an attorney-client relationship between you and I.C.
System.
No Legal Advice Intended: This presentation includes information
about legal issues and legal developments. Such materials are for
informational purposes only and may not reflect the most current
legal developments. These informational materials are not intended,
and should not be taken, as legal advice on any particular set of facts
or circumstances. You should contact an attorney for advice on
specific legal problems.
© 2014 I.C. System, Inc. All Rights Reserved.