1. Patient Loan Programs! Are they right for your organization?

2. Kenlyn T. Gretz CEO of AMERICOLLECT

3. Loan Programs – The Positive  Patients pay in full more quickly.  You build loyalty with the patient.  You train the patient to pay in full in the future.

4. Loan Programs – The Positive  Patients pay “loan” payments with higher priority than healthcare bills. Less Rob Peter to Pay Paul!  You save statement costs, payment application, and posting.  You don’t carry “as much” of the risk - future bankruptcy  You drive more PAID IN FULL even if they don’t sign up for the loan program.

5. Is it Right For Your Organization?  You need larger balances $500 - $750 or Add On Services.  Do you need cash more quickly?  Decrease your AR more quickly than extended payment plans of 6 to 18 months.

6. Is it Right For Your Organization?  Radiologist with no direct patient contact?  Emergency Doctors with direct patient contact, but limited quality patient time?  Healthcare system with 4 different software systems (hospital, physician, home health, nursing home)?

7. Why Loan Programs Fail  Sign up (application) too complicated.  Too many people involved in the process.  Not a good deal for the patient.  No sense of urgency. If you don’t pay X, then you must do loan.  No buy-in from internal provider staff.

8. Why Loan Programs Fail  Internal provider staff, not given training.  Loan program is not communicated.  Loan program is not monitored.  Patient perception that “their” bank can do better.  Call it Loan Program v Extended Payment Plan.

9. Local Bank V. Healthcare Specific

10. Local Bank  May not want the business.  Familiarity to the patients.  Lack of data sophistication for add on balances.  Data sophistication for default/recourse notification.  Community relations.  Too high of a score threshold.  Reports to credit file.

11. Healthcare Specific  Lack of familiarity to the patients.  Data sophistication for add on balances.  Data sophistication for default/recourse notification.  Too far away?

12. Healthcare Specific  Simple application.  Transfer call to sign up.  Website Access for provider and patient.  More defaults?  Usually does not report or check credit file.

13. How Healthcare Specific Work  The provider has no money invested.  Loan company approves most anybody.  Patient charged a loan origination fee ( $10 - $25 )  Patient charge interest between 0% – 10%  Loan company reimburses provider for full amount of loan less an expense fee ( 5-10%) – just like credit cards. ( 1000 $ bill – nets $970 to provider ).  Expense Fee is for sending statements and monitoring loan.

14. How They Work  The provider has no money invested.  Provider is out of the picture and marks the account paid in full.  Unless…the patient defaults.  During the time of non-default, providers saves from sending statements and posting payments. Provider earns interest on the $970.00 in their bank.  The loan company earns the interest (if charged) on the loan.

15. How They Work  Default: Practice gets the account back less any payments applied to principle. Practice adds back on the “expense fee” and lists for full collection at a collection agency.  What do you think is the default rate?  3% - 6%  Normally – later on the payment term  Add on new balances - functionality  Excel Chart Excel Chart

16. Our Next Webinar! Calling All Cell Phones With Express Permission Complying with the Telephone Consumer Protection Act (TCPA) Tuesday, June 24th, 2014 1:00 PM - 1:45 PM CST If you would like to sign up, send an email to sales@americollect.comsales@americollect.com We will also be sending a reminder email.

17. Thank You. sales@americollect.com FIVE time winner of Inc Magazine’s Fastest Growing Private Company! 2009 – 2013 FIVE time winner of Inside ARM Best Places to work in Collections.