Menu
Button: Make a Payment Button: Newsletter Mailing List

Icon: Healthcare LawHands-On Experience

Providing legal advice

and services since 1977

Healthcare Newsletter

Question on Paying a Billing Company or Biller a Percentage a No No?

July 19, 2011

Question:

Hi Jennifer,

Thank you for sending that email out last Thursday on paying a billing company a percentage. Since most insurance companies refuse to pay for OBS claims, and if an initial attempt to collect on the part of the OBS facility fails, could it then be sent to a billing company on a percentage basis? Does a billing company have to go through a registration or other process in order to qualify as a collection agency?

Dr. T

Answer:

Yes. Collection companies - ones involved in "collection activity" above and beyond sending invoices or overdue notices - are required to be licensed in pretty much all local jurisdictions that I'm aware of, and once licensed they are required to adhere to a smattering of federal, state and local regulations governing their operations. For instance, collection companies are only allowed to initiate collection efforts during certain times of the day, and those efforts are required to be accompanied by certain notices that the company is looking to collect a debt owed. The particulars required for operation are taxing. So, as I indicated in the prior email, you really can't take a "billing claim" and smack a "collections" stamp on it and send it out for processing to your third party biller.

Another avenue many utilize to assist with collections is to engage a law firm. Our firm does have a collections department and I would be happy to speak with you regarding our collection process should you have the need.

 

Copyright © 2011 by Kirschenbaum & Kirschenbaum, P.C.

All Rights Reserved. This email is provided for news and information purposes only and does not constitute legal advice or an invitation to an attorney-client relationship. While every effort has been made to ensure the accuracy of the information contained herein, Kirschenbaum & Kirschenbaum PC does not guarantee such accuracy and cannot be held liable for any errors in, any reliance upon this, or losses caused by the information. Under New York’s Code of Professional Responsibility, this material may constitute attorney advertising. Prior results do not guarantee a similar outcome.


Looking for the KK Healthcare Exchange?  Click Here. 

MISSED OUR RECENT WEBINARS?  CLICK HERE ANYTIME!
Looking for HIPAA and compliance forms?  
Click here to visit our website.
Have a question or comment for Jennifer?
Contact Jennifer at Jennifer@Kirschenbaumesq.com or  at (516) 747-6700 x. 302.
Interested in having Jennifer speak at an event or
at a residency/fellowship program?
Contact Jennifer directly at (516) 747-6700 x. 302 or at Jennifer@Kirschenbaumesq.com
Click here to learn about
K&K's Prepaid Legal Audit/Investigation Defense Now!