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Question
QUESTION: I have worked in the credit card collection business for three years and I am interested in starting a medical collection business in Florida. what are the steps would i need to start a medical collection business.
ANSWER: First, you should work at a 3rd party collection agency as well as in the collections department for medical debt. You will need an understanding of third party debt collection as well as the specific laws, rules and regulations for the collection of medial debt specifically.
Your next step will be to write a business plan, marketing plan and leads for funding your agency. You will need to look into licensing, bonding and E&O insurance.
Read all you can on this topic, subscribe to industry trade publications and network with others in this industry to learn as much as you can before opening your doors. If you can afford it, hire a consultant to answer any questions.
---------- FOLLOW-UP ----------
QUESTION: I did some research already. I wanted to focus mainly in the medical collection area even though I never did medical collection. In the state of florida I am only require to have a license, and there are no specific rules,laws and regulation is geared for just medical collection its the same laws that cover a 3rd party collection. I know a friend that work for one and I am waiting for her to get me the type of phone script they use. I wanted to ask you, what other ways can i go about getting involve in it.
Hi Andron,
If you are going to focus on medical debt be sure to learn and follow the laws pertaining to medical debt - there are different laws such as HIPPA in addition to the FDCPA and the FCRA as well as state laws that you will have to follow. You will also want to become familiar with "The Privacy Rule" The Privacy Rule requires a "business associate" (collection agency or billing firm) to reasonably limit the amount of information disclosed for such purposes to the minimum necessary as well as to abide by reasonable requests for confidential communications.
I would join associations, network with others in the industry and read all the books and trade publications on this topic you can so you can learn as much as possible.
Collecting medical debt is much different than collecting "regular" consumer debt, or debt willfully incurred. You will also want to learn mediation skills since many times you will be talking with insurance companies.
Good luck!
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Answers by Expert:
Michelle Dunn
Expertise
As one of the Top 5 Women in Collections, one of the Top 50 Collection Professionals, and winner of the Business Excellence award, I can answer any questions about debt, debt collection, improving business credit, creating a credit policy, enforcing a credit policy and collecting on past due accounts. I can also answer questions in regards to starting a debt collection agency since I have been a bill collector for over 24 years, started and ran my own collection agency for 8 years, and maintain my 12 year old Credit & Collections Association for members of the credit & debt collection industry. I am also the author of the popular and award winning book "Starting a Collection Agency, how to make money collecting money" now on it's 3rd edition. This book has won a the Writers Digest self published award as well as the New York Book Festival Award. I am a repeat contributor to the Wall Street Journal, and have been featured on NPR, CNN, as well as many other national radio and television programs. I have also been featured in national publications such as the Wall Street Journal, Forbes, Smart Money, MSNBC and much more. I have 17 published books to my name and am an accomplished speaker and consultant. I currently write 9 columns for newspapers, magazines and online portals worldwide.
Experience
I have over 24 years experience in debt collection, I started and ran my own collection agency for 8 years and I am the founder & owner of my Credit & Collections Association that I founded in 1998. www.credit-and-collections.com
Organizations
My Credit & Collections Association, I was also a member of the American Collectors Association and Plymouth Chamber of Commerce for 11 years. I am a member of many writing groups as well as my local Women Inspiring Women chapter. I am a member of Know More Media as an expert for their blog on business credit.
Publications
Business NH Magazine, Smart Money Magazine, MSNBC, CNN, Forbes.com, The Wall Street Journal, Home Business Magazine, Entrepreneur Magazine and website, many books, newspapers and television programs as well.
Education/Credentials
I have written 17 books in my collecting money series and one for Entrepreneur Press called the Ultimate Credit and Collections Handbook. My newest book is being published by John Wiley & Sons in May titled, The Guide to Getting Paid, how to weed out bad paying customers, collect on past due balances and avoid bad debt. This book is also being sold to many colleges as a text book.
Awards and Honors
My book Starting a Collection Agency, how to make money collecting money won an award from Writers Digest and the 2007 New York Book Festival in the "How to" category. I have won 2 awards from Dun & Bradstreet and Governor Jean Shaheen. I was nominated as one of the Top 5 Women in Collections twice as well as having been selected as one of Collection Advisor's Top 50 Collection Professionals by my peers.
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