When Writing off Bad Debt Isn’t Enough for Private Practices

Medical providers following government regulations laid out in EMTALA can become so embattled by bad debt that writing it off doesn’t completely cover it.

Providers can accumulate overwhelming amounts of bad debt due to insurance company Allowed Procedures and new federal and state regulations, despite benefits allowed by the Affordable Health Care Act.

U.S. hospitals reported $45.9 billion in uncompensated care in 2012 representing 6.1 percent in annual hospital expenses. (Source: American Hospital Association, “Uncompensated Hospital Care Cost Fact Sheet,” January 2014.).

Medical Collections

Medical collections are usually the first go-to for practitioners, but they put caring doctors in an unpleasant situation. The doctor who was heroically saving a victim’s life just months earlier is now mercilessly chasing down that victim for payment they can’t afford.

Injury Investigations

In an article posted on examiner.com recently, a new injury investigation company was announced that seems to be a viable solution for practitioners in bad debt situations.

Third Party Evaluation Services (TPES) is a company that seeks restitution for injured clients and their medical provider by finding those responsible for accidents and holding them financially accountable. The company was founded by former Southern Fried Stings (truTV) star, Jay Russell.

Russell says TPES is different from lawyers you might see advertising on television.

“TPES differs by employing former law enforcement investigators to thoroughly research the accident and then referring a highly specialized lawyer to the victim. These experienced professionals increase the likelihood of obtaining enough compensation to both cover damages and repay the medical providers who tended to the injuries.”

TPES aggressively seeks recourse for the medical provider when working a case with a victim. Any resulting restitution obtained upon the awarding of a settlement is given to the referring practitioner.

Hopefully TPES eases stressful situations for some of America’s private practices when writing off bad debt simply isn’t enough.

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