The two bad options, and why practices keep picking the first one.
A small share of claims never resolves. You have followed up, you have called the carrier, you have received a marginal response, and the account has been open for months. At that point a practice has two conventional choices, and both of them are bad.
Option one: write it off
Clean, fast, and it costs you the entire balance. Most practices choose this most of the time, not because they think it is right but because the alternative feels worse.
Option two: a hard-line agency
You recover something, but the agency keeps 35 to 50 percent of the value of the claim. And you very often lose the patient — harsh collection destroys goodwill, and goodwill was the thing generating referrals.
You are not set up as a collection agency, and you should not have to become one to close the book on an account.
What we do instead
This service is deliberately narrow. It applies only to the specific accounts that need this kind of additional effort — the last few percent — rather than to your receivables generally. Used that way, it can be priced at a level neither your own staff nor a conventional agency can approach.
- Recover faster, and directly. Unlike a conventional agency, past-due accounts are instructed to pay you. The money does not route through someone else’s trust account first. This applies to both patient and insurance balances.
- Lower internal and collection cost. The model targets a reduction of internal cost by as much as 30% and collection cost by as much as 50% against traditional agency arrangements.
- You keep control of the tone. You decide when activity starts, when it stops, and whether each individual account is handled diplomatically or intensively. Not a blanket policy set by someone who has never met your patients.
Those percentages are the model’s stated assumptions rather than RevAmp performance data — we are a new firm and have no recovery history to quote yet. They are on the calculator page in full, and we would rather you challenged them on the call than discovered them afterwards.
Agency versus direct recovery
Two inputs — how many past-due accounts, and the average balance. The calculator shows what each model nets the practice after the cost of collecting.
