Healthcare staffing agencies often face challenges when clients do not pay for services rendered. In such situations, having a structured recovery system in place is crucial to ensure the collection of company funds. This article explores a three-phase Recovery System for healthcare staffing agencies to recover unpaid funds from clients.
Key Takeaways
- Implement a structured Recovery System with clear phases for handling non-payment situations.
- Utilize skip-tracing and investigation techniques to obtain debtor information and initiate contact for resolution.
- Consider the option of litigation if recovery through standard collection activities is not feasible.
- Understand the cost implications of legal action, including upfront legal fees and collection rates based on the age and amount of the debt.
- Evaluate the possibility of closing a case if recovery is deemed unlikely after thorough investigation.
Recovery System for Company Funds
Phase One
Upon initiating Phase One, swift action is taken to signal the seriousness of the debt recovery process. Within 24 hours of account placement, a multi-channel communication strategy is deployed:
- A series of four letters is dispatched via US Mail to the debtor.
- Comprehensive skip-tracing and investigation are conducted to secure optimal financial and contact data.
- Persistent contact attempts are made by our collectors through phone, email, text, and fax.
Daily engagement is our standard, ensuring that every avenue is explored in the initial 30 to 60 days. Should these efforts not yield a resolution, the transition to Phase Two is immediate, involving our network of affiliated attorneys in the debtor’s locale.
Phase Two
Once the case is escalated to an affiliated attorney, a more assertive approach is taken. The attorney drafts a series of demand letters on their letterhead, signaling a serious intent to recover funds. Concurrently, the attorney’s team begins persistent attempts to contact the debtor through calls, aiming to negotiate a resolution.
If these efforts do not yield results, the situation is assessed for the next course of action. A detailed report is provided to the client, outlining the challenges encountered and the recommended strategy moving forward.
At this juncture, the client is faced with a decision: to proceed with litigation or to continue with standard collection activities.
The choice made here will determine the transition into Phase Three, where the potential for litigation or case closure is considered based on the likelihood of fund recovery.
Phase Three
Upon reaching Phase Three, the path forward hinges on the feasibility of fund recovery. If prospects are dim, we advise case closure, absolving you of any financial obligation to our firm or affiliated attorneys. Conversely, should litigation appear viable, a pivotal choice awaits.
Opting out of legal proceedings allows for claim withdrawal at no cost, or you may persist with standard collection efforts. Choosing litigation necessitates covering initial legal expenses, typically between $600 to $700. These fees empower our attorney to aggressively pursue all owed monies.
Should litigation prove unsuccessful, rest assured, your financial commitment ends there—no further dues will be owed.
Our fee structure is designed to align with your success, ensuring our interests are mutually beneficial. Below is a succinct breakdown of our rates based on claim quantity and age:
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For 1-9 claims:
- Under 1 year: 30%
- Over 1 year: 40%
- Under $1000: 50%
- With attorney: 50%
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For 10+ claims:
- Under 1 year: 27%
- Over 1 year: 35%
- Under $1000: 40%
- With attorney: 50%
These rates are competitive and tailored to the specifics of your case, ensuring that we only succeed when you do.
Frequently Asked Questions
What is the Recovery System for Company Funds?
The Recovery System for Company Funds consists of three phases: Phase One, Phase Two, and Phase Three. Each phase involves specific actions to recover funds owed to the company.
What happens in Phase One of the Recovery System?
In Phase One, within 24 hours of placing an account, letters are sent to the debtor, skip-tracing and investigation are conducted, and attempts to contact the debtor are made. If all attempts fail, the case moves to Phase Two.
What is the process in Phase Two of the Recovery System?
In Phase Two, the case is forwarded to a local attorney who drafts letters demanding payment from the debtor. Attempts to contact the debtor continue, and if no resolution is reached, recommendations are made for the next steps.
What are the options in Phase Three of the Recovery System?
In Phase Three, if recovery is unlikely, the case may be closed with no fees owed. If litigation is recommended, the client can choose to proceed or withdraw the claim. Legal costs are required for litigation, and if unsuccessful, no fees are owed.
What are the rates for the Recovery System services?
The rates for the Recovery System services vary based on the number of claims submitted and the age and amount of the accounts. Rates range from 27% to 50% of the amount collected, depending on the specific circumstances.
What happens if attempts to collect via litigation fail in Phase Three?
If attempts to collect via litigation fail in Phase Three, the case will be closed, and no fees will be owed to the firm or the affiliated attorney.
