One in five Americans has medical debt that has gone to collections.
Although debt collectors often have a bad reputation, the truth is that hiring a healthcare debt collection agency can help not only your business but also the economy as a whole. Keep reading to learn more about how debt collection has a positive effect on the economy and why your business can benefit from third-party collection services.
1. Returning Revenue to the Economy
According to a study conducted by Ernst & Young, debt collection agencies returned $78.5 billion to the economy in 2016, and this number has only increased in recent years.
ACA International also looked at the range of the influence that debt collection companies have across the economy. The highest percentage of debt collected was in the healthcare industry. This makes sense, as more than one in three U.S. adults has medical debt. The next highest percentage went to student loans. Financial services, government, retail, telecom, utility, mortgage, and other debts rounded out the calculation, representing much smaller percentages for each area.
2. Helping American Families
When money is returned to the economy, it ultimately goes back into the pockets of American families. Third-party debt collection companies work with patients to establish payment plans, which in turn lowers the price tag of expensive commodities, like healthcare and higher education. Many Americans wouldn’t be able to afford these commodities without taking on debt.
But when they don’t fulfill their obligations to repay that debt, the economy as a whole suffers. Debt collection agencies help individuals and families fulfill those obligations, raising their credit scores, lowering their interest rates, and improving their financial health.
3. Helping Lenders
Debt collection services also help individuals and financial institutions by stabilizing lending. Debt collection helps ensure individuals have fair access to loans. This access can be limited by outstanding debt, which limits an individual’s ability to grow financially. Recovery of past-due financial responsibility gives lenders back the resources they need to write new loans and provide more financial opportunities.
4. Lowering Other Costs
Debt collection companies also help lower the price of commodities. When businesses and agencies recover the money they are owed, prices for commodities go down for everyone. This also means lower bad debt costs, decreased taxes and fees from governmental entities, and fewer spending cuts.
5. Creating Jobs
Debt collection companies also contribute to the economy by creating jobs and ensuring companies make payroll.
According to the Ernst & Young study we mentioned earlier, debt collection agencies employed 130,000 people in 2016, paying them nearly $5 billion dollars. The debt collection industry has also influenced the creation of additional jobs.
Debt collection helps businesses make payroll by eliminating debt and putting financial resources back into their hands.
Do You Need Help?
As you can see, unpaid debt affects us as individuals, businesses, and a nation as a whole. Unpaid debt is especially problematic for the healthcare industry.
Revco Solutions offers third-party debt collection services that can help your business get back valuable resources. When you recover unpaid debt, you can invest that money back into building and growing your business.
Contact us today to learn more about how our debt collection services can help your healthcare organization.