What a collection agency actually returns.

A traditional agency recovers a small share of what you hand over and keeps a large share of what it recovers. Practices rarely run the arithmetic because the alternative — writing the account off — feels like the same outcome with less paperwork. It isn’t.

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Enter your figures

Two inputs. The recovery and cost rates are fixed by the model.

Past-due accounts annually The ones you would hand to an agency or write off.

Average outstanding balance

Reset to national averages

Assumptions — read these, they do the heavy lifting

Traditional agency: recovers 10% of the balances handed over, and costs 40% of what it recovers.
RevAmp model: recovers 45%, at a cost of 4% of what is recovered.
Both sets of rates are fixed in the original calculator and are not RevAmp performance data — we are a new firm with no recovery history to quote. Treat them as the model’s stated position, and ask us to justify them on the call.
The model does not price the patient relationship, which is the reason most practices avoid hard-line agencies in the first place.

Collection services LIVE

	Traditional agency	RevAmp
Past-due accounts annually	—	—
Average outstanding balance	—	—
Total outstanding annually	—	—
Percentage recovered	—	—
Revenue collected	—	—
Cost to collect	—	—
Total annual cost to collect	—	—
Net to the practice	—	—

— additional revenue recovered annually on accounts you would otherwise write off.

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Why the cost line is the interesting one

An agency taking 35 to 50 cents on the dollar is not unusual — it is the standard arrangement, and it is priced that way because the agency is carrying the risk and the labour. The difference in this model is not that we are cheaper for the sake of it; it is that past-due patients are instructed to pay you directly rather than the agency, so the money does not make a detour through someone else’s trust account before reaching you.

The other difference does not appear in the table at all. You decide when collection activity starts, when it stops, and whether each account is handled diplomatically or intensively. Harsh collection usually costs a practice the patient — and the referrals that came with them.

Next: telehealth

The simplest of the four calculators, and usually the one that surprises people.

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