1. Business Processing Solutions Accounts Receivable Management Customer Relationship Management (A/R and CRM)

2. Building Blocks for a Successful A/R and CRM Platform Build the technical infrastructure needed to execute effective A/R and CRM strategies Develop customer facing personnel to effectively facilitate inbound/outbound calls Establish and produce real time and periodic performance management reporting Self assess execution and results through reporting, audit, and ongoing management

3. Technical Infrastructure A database system to manage customer financial, demographic, and activity records Phone systems to facilitate inbound and outbound calling (A/R and CRM) Systems to [comprehensively] generate timely and accurate statements/letters Features that enable seamless processing (mail return example)

4. A/R and CRM Reps Reps need capacity in their job functions to facilitate collections and customer service Reps with skill sets that include problem solving, organizational, and negotiating skills Goal oriented individuals supported by a goal driven organization (A/R and CRM goals) Real time and periodic performance analysis coupled with a system of +/- consequences

5. Performance Reporting Simple reporting with simple (and timely) delivery channels Example 1: collection rate with roll up and drill down ($ collected / $ “batched”) Example 2: brand protection with current and historical looks (calls answered / complaints) Example 3: issues management with current and historical looks (open / closed and type)

6. Self Assessment Regular reporting that defines production targets and tolerances for exceptions An audit strategy that objectively identifies areas of concern and opportunities Management time and capacity dedicated to A/R and CRM A system to trend and manage continuous improvement (also P & P)

7. Other Things to Know Other parts of the business may be the culprit (sales and origination as examples) Problem solving (people and systems) is at the core of great CRM and A/R Management Great CRM and A/R Management is management driven (bank example Technology is constantly and rapidly changing and evolving (VOIP example)

8. In-house vs. Sourcing Does the technology exist and/or do you have the capital necessary to acquire? Do you have the technical expertise to setup, maintain, and manage the technology? Do you have enough of the right people with the right skills to be effective? Do you have enough management time and expertise to be effective?

9. In-house vs. Sourcing con’t. Do you have vendors (and people to manage vendor relationships) in place? Do you have reporting in place to effectively measure results? Do you have a pro forma that evaluates net income? (expenses / collection rate) Are your sales and/or delinquencies flat throughout the year? (variable vs. fixed costs)

10. Hospital Case Study - Patient Pay Solution P & L Analysis - Internally Managed vs. Sourced Projected Full Year Revenue InternallyDelta ManagedSourced$% A/R Revenue 3,000,000 3,600,000 600,000 Bad Debt revenue 450,000 378,000 (72,000) Total Revenue 3,450,000 3,978,000 528,00015% Expenses HR 250,000 - (250,000) Mail 54,000 - (54,000) Agency Fees 74,250 318,240 243,990 Total Expenses 378,250 318,240 (60,010)-16% Net Income 3,071,750 3,659,760 588,01019%