Certified Revenue Cycle Representative (CRCR) Practice Exam

What is an advantage of using a collection agency to manage delinquent patient accounts?

1. Agencies charge lower fees

2. Collection agencies collect accounts faster than the hospital does

3. Agencies offer payment plans

4. Collection agencies have more resources

The correct answer is: Collection agencies collect accounts faster than the hospital does

Using a collection agency to manage delinquent patient accounts can expedite the collection process, which is why this choice is considered advantageous. Collection agencies specialize in the recovery of past-due accounts, and they often employ trained professionals with specific skills and strategies designed to secure payments more efficiently than internal staff might. They typically have established procedures and systems in place that allow them to follow up persistently and consistently, increasing the likelihood of recovering outstanding debts promptly. In terms of other options, while collection agencies might sometimes offer competitive fees or various payment plans, the primary advantage they provide lies in their focus and ability to recover accounts quickly. Additionally, while it's true that agencies may have more resources, their effectiveness in rapid collection remains the standout benefit, making option B the most pertinent choice here.