We are all searching for ways to take cost out of our operations without sacrificing revenue. Use of scoring and segmentation tools can help us all accomplish this goal and more.

Typical applications of scoring and segmentation focus on gaining efficiency in calling and billing efforts and look to “segment”, or group, accounts into various billing and collection strategies. This has proven to be an effective means by which to reduce operating costs on certain segments of accounts where the likelihood of recovery is much lower than other segments of inventory within your receivables. Use of scoring and segmentation can also allow you to speed up the recovery within the higher propensity to pay or higher value groups of accounts earlier in the cycle. There are a lot of scoring models on the market and even more customized models available if your system is compatible, but do your research to determine the differences in the models available before spending the time and resources to build out the scoring process in your system.

Another growing application of scoring is to allow for a more efficient identification of those customers needing partial or full forgiveness of the underlying debt. Whether you call it a hardship, financial assistance, or charity program a good scoring and segmentation strategy as well as the appropriate tools should allow you to identify those customers most in need of such programs. When considering the hurdles that can get in the way of existing programs with unwilling or uncooperative customers, confusing and burdensome paperwork and perhaps hard-to-reach individuals, having a good segmentation strategy can make the overall process more efficient.

Combining the application of sound scoring and segmentation will allow you to maximize resolution of your outstanding accounts receivable. In many cases your vendor partner, as is the case with State Collection Service, can provide the solution for you, making it easier to implement and garner the benefits of these strategies.

Since 1949, State Collection Service has provided quality collection service to countless healthcare organizations.

Through experience and innovation, State Collection Service has grown to become a tremendously credible and nationally-recognized collection agency offering services from pre-registration to bad debt. It is upon the basis of ethical behavior and a dedication to integrity that each State Collection Service employee works to uphold the company’s vision – Partnerships for a Lifetime.

*This article first appeared in “A State Collection Service, Inc. Newsletter Volume 19, Issue 3, Third Quarter 2013”