1. I. INTRODUCTION......................................................................................................................1
BACKGROUND AND EXPERIENCE..................................................................................................3
A CENTURY OF SERVICE......................................................................................................3
CORPORATE OFFICERS.........................................................................................................4
COLLECTION STAFF.....................................................................................................7
CLERICAL STAFF...........................................................................................................8
CLIENT SERVICES STAFF............................................................................................8
TRAINING.................................................................................................................................8
IV. DESCRIPTION OF SERVICES...............................................................................................10
GENERAL CONTINGENT COLLECTIONS.........................................................................10
WORK STANDARDS..............................................................................................................10
COLLECTION LETTERS.......................................................................................................14
TELEPHONE CONTACTS.....................................................................................................14
SKIP TRACING.......................................................................................................................15
CREDIT BUREAU REPORTING: ........................................................................................15
MONITORING WORKERS’ COMP AND THIRD-PARTY LIABILITY CASES................15
PARTIAL PAYMENT PLAN MONITORING........................................................................16
MEDICARE DEDUCTIBLES..................................................................................................16
EARLY-OUT SERVICES........................................................................................................16
PRE-COLLECTION SERVICES.............................................................................................17
LITIGATION CAPABILITIES................................................................................................18
V. COMPUTER RESOURCES....................................................................................................19
ELECTRONIC REFERRALS..................................................................................................20
COMPUTER COMPATIBILITY AND DATA CONVERSION............................................20
DATA SECURITY AND PROGRAMING CAPABILITIES..................................................20
REPORTING............................................................................................................................21
REMOTE ACCESS BY CLIENT............................................................................................22
VI. LICENSING/BONDING/INSURANCE..................................................................................22
VII. SUMMARY..............................................................................................................................23
. INTRODUCTION
The purpose of this proposal is to inform; to give you a sense of what a service-
oriented partnership with Merchants' Credit Guide Co. (MCG) would be like.
What is a partnership? MCG sees a partnership as a relationship, one of trust
and respect, one whose purpose is to mutually benefit both parties. Partnership
responsibilities lie with both parties, but together, each party achieves greater
results than when acting apart.
Merchants’ Credit Guide Co. is focused solely on providing its client partner with
accounts receivable solutions which create advantages for their organization.
We are dedicated not only to representing and serving our clients in a
professional, productive, and diplomatic manner, but to deliver on each client’s
Merchants’ Credit Guide Company 1 Overview
2. definition of the ideal agency relationship. In order to accomplish this we must:
Be responsive to your specific needs, requirements, and preferences;
Provide a user-friendly relationship that reduces your administrative
burden;
Promote superior patient relations;
Deliver accurate, secure, timely and responsive data and reports;
And deliver excellent results in a virtually complaint- free manner.
The mission of MCG:
TO DELIVER ON YOUR DEFINITION OF THE IDEAL AGENCY RELATIONSHIP
– EVERYSINGLE DAY
Merchants’ Credit Guide Company 2 Overview
3. II. BACKGROUND AND EXPERIENCE
OVER A CENTURY OF SERVICE
It is reasonable for healthcare providers to look for stability and longevity in
their vendor relationships. For over a century Merchants' has served the
business/healthcare community, providing effective and professional collections
with diplomacy. Founded in 1896, Merchants' Credit Guide Company was
incorporated in Illinois on June 13, 1899. A privately held firm in its fourth
generation of family ownership, our long term success offers business
professionals security and reliability virtually unmatched in the industry.
Merchants' Credit Guide Company specializes in the efficient and effective
collection of healthcare accounts. We maintain a comprehensive medical
department with extensive experience handling a variety of medical accounts
and complex reimbursement issues. Though the patient is ultimately
responsible, we first work with all involved third parties in an attempt to resolve
any issues in our efforts to maximize your reimbursement on the accounts
outstanding.
Merchants' is dedicated to collecting your delinquent accounts while
maintaining the highest ethical standards to ensure a fair but firm approach
is used by our staff to recover your money. We are acutely aware of the
importance of courtesy and professionalism during our communications with
patients. Your accounts will be worked in a diplomatic and thorough manner,
with utmost attention being paid to the sensitive patient relationship.
The commitment we have to our clients and our industry is demonstrated
through the positions of leadership we currently hold . The principals of
Merchants' have served as Chairman of the Licensing and Disciplinary Board of
the Collection Agency Division for the Illinois Department of Professional
Regulation, Director of the Illinois Collectors Association and members of HFMA.
Our medical collection department consists of experienced healthcare
collectors. They have been trained extensively in the laws which govern our
industry as well as the techniques that effectively and diplomatically collect
money due our clients. Their compensation consists of a salary plus monthly
commissions and bonuses. The average tenure in this department is 5 years.
Merchants has committed to staying on top technologically . We assisted in
the development and served as a beta-site for a powerful new knowledge- based
collection software called "Intelec." Our software and hardware, an IBM AS400
and integrated telephony application, allows us the flexibility to tailor our
approach to any client- specific requirements. The result of this investment in
technology is that we can provide data transfer and reporting in a variety of
ways, depending on client needs.
In summary, Merchants' Credit Guide Company understands the role of the
collection agent. We are an extension of your business office; a team member
Merchants’ Credit Guide Company 3 Overview
4. that to enhance the revenue while maintaining patient relations, must conform
to the policies and wishes of our client. We also understand your need to
continually strive to improve all areas of operation. Merchants' possesses
the experience and expertise to assist you in achieving these goals.
CORPORATE OFFICERS
BIOGRAPHY
OF
DANIEL F. BURTIS
PRESIDENT& CEO
Merchants' Credit Guide Co.
Employed by Merchants' Credit Guide Company since 1985
Education: B.S. - Business Administration - Miami University,
Oxford, Ohio
Personal: Age 52, Married - four children
Current Offices:
1. Director - Illinois Collectors Association (ICA)
2. Grievance Committee Chair - ICA
Previous Offices:
1. President - Illinois Collectors Association
2. Chairman - ICA Education Committee
3. Director - Illinois Collectors Association
4. Chairman - Illinois Collectors Association Political Action
Committee
Professional Affiliations :
1. Healthcare Financial Management Association
2. The Economic Club of Chicago
3. Association of Business Executives
4. Commercial Law League of America
Merchants’ Credit Guide Company 4 Overview
5. BIOGRAPHY
OF
EDWIN S. BURTIS
SECRETARY/TREASURER
Merchants' Credit Guide Co.
Employed by Merchants' Credit Guide Company since 1958
Education : BA - 1952 - DePauw University, Greencastle, IN
MBA - 1956 - Harvard Graduate School of Business
Personal: Age 82, Married - Four children, fourteen
grandchildren
Current Offices:
1. Chairman - Collection Agency Licensing and Disciplinary
Board for State of Illinois
2. Legislative Committee - Illinois Collectors Association
Previous Offices :
1. Director - American Collectors Association
2. Committee Chairman - Client Indemnity
3. All offices of
Illinois Collectors
Association
4. Bond Trustee of American Collectors Association
5. Board member - Glenbard High School District 87
6. Board member - Grade School District 41 in Glen Ellyn
7. Board member and Treasurer - DuPage County Airport
Authority
8. Board member - Central DuPage Health Care Institute
9. Jury Commissioner for 18th Circuit Court
10. Board member and President (5 years) - YMCA Hotel of
Merchants’ Credit Guide Company 5 Overview
6. Chicago
11. Board member and President (6 years) DuPage County
Board of Health
Awards :
1989 - Recipient of the ACA Key Award
Presented to the one person in the country who in the
opinion of the American Collectors Association
contributed the most to a state unit.
1985 - International Fellowship of Certified Collectors
1982 - Outstanding Education Chairperson of the year for
ACA
REFERENCES
Edward-Elmhurst Hospital Pyramid Medical Mgmt.
Services
27555 Diehl Road 438 N. Fredonia Street
Warrenville, Il 60555
Longview, TX. 75601
Cathy Kosiek
Cindy Owen
Manager - Patient Financial Services Billing Manager
(630) 646-3704 (903) 331-0506
Adventist Health System- Midwest Commonwealth
Orthopaedic
1000 Remington Blvd. Suite 200 560 S. Loop Road
Bolingbrook, IL 60440 Edgewood, KY 41017
Pamela Cassidy Janie Oliver
Director, Patient Accounts Financial Services Patient Accounts Manager
(630) 312-7430 (859) 301-0744
Cadence Physician Group The Consult,
Merchants’ Credit Guide Company 6 Overview
7. Inc
371 Schumale Road 415 Greenwell Avenue
Carol Stream, IL 60188 Cincinnati, OH
Debi Tapenes Jean Papin
Director, Business Services Billing Manager
(630) 933-1616 (513) 557-3346
DuPage Medical Group
1100 W. 31ST
Street
Downers Grove, IL. 60515
Christyne Strutynsky
Credit/Collections Mgr.
(630) 942-7979
We believe a positive working environment often creates consistent and
positive results. Year after year, we achieve the lowest employee turnover
rates in the collection industry. Office setting, lucrative bonuses and generous
fringe benefit plans have created a positive, productive environment. To our
clients, this means an continued and consistent devotion to their needs, and a
productive business and personal relationship with our employees.
COLLECTION STAFF
The cornerstone of any collection operation is the collector. At MCG we offer
our collectors solid compensation plans, together with lucrative incentive
programs and benefits. As a result we enjoy an extremely low turnover rate.
With a single operational center, we do not have the high operational costs of
multi- branch agencies, which allows us to re-invest a higher percentage of
revenues back into the collection process. The result is a tightly controlled,
state- of-the-art collection operation.
With the advent of advanced technological breakthroughs, such as predictive
dialers and on-line services, unlike many agencies, MCG has not forgotten that
the process won't work if a qualified, professional collector does not spend
his/her time listening and talking to your debtors. The focus of our operation is
on the collector with our technology in support, not the other way around.
Merchants’ Credit Guide Company 7 Overview
8. When hiring collectors, we look for highly motivated individuals with flexible
hours who will thrive in a competitive, professional environment. We require
prior collection experience for all candidates. Our healthcare collectors must
have extensive medical collection/billing experience with other agencies or
providers.
Experience has taught us to reward our collectors by paying a base salary plus
commission. We have found this results in higher productivity and better
employee retention. Collection quotas, goals, and contests are set each month
by the collectors and their manager to improve performance and provide
motivation. Collector productivity is tracked daily and reviewed weekly and
monthly.
Languages spoken by our staff include English and Spanish. Our staff averages
10.8 years in collections with 5.6 years with MCG.
CLERICAL STAFF
The clerical staff is responsible for the specific clerical and administrative
functions of MCG. Our staff is prepared to meet any clerical function
requirements associated with any client.
CLIENT SERVICES STAFF
Client Services is headed by our president, Dan Burtis, and is the direct link
between your management staff and MCG. Any questions regarding
forecasts, reporting, procedural issues, special requests, etc., are handled
by Client Services.
Client Services will monitor our performance on your accounts on a
monthly basis, as well as compliance with your goals and requirements.
Client Services handles all inbound
client calls, logs them, and monitors response time for resolution/follow- up,
to ensure that all your inquiries are handled properly and timely.
We have experienced great success by adapting a pro-active mind set to
our approach to client service.
TRAINING
Merchants' Credit Guide Co. considers its people its greatest asset. It is
primarily through our people that we achieve our mission. It is our people,
leadership and professionalism that separates us from the others and
provide the benefits to our clients.
We also believe true, consistent customer service to our "external
Merchants’ Credit Guide Company 8 Overview
9. customers," our clients and their debtors, can only be achieved by first
focusing on our "internal customers," our employees. Therefore, we
consider employee training the cornerstone to success.
We conduct extensive searches to hire experienced, bright, positive
people. In order to keep our people happy (yes, happy!), motivated,
challenged, and productive, we feel it is our responsibility to provide the
highest quality training possible, both initial and on-going. We have
experienced, first- hand, that training is an investment that pays off for
both our company as well as our clients.
It provides the following benefits:
superior employee retention
superior client retention
greater productivity
complaint prevention
more "well-rounded" employees
more confident, empowered employees
a happier work-place
Client Specific Training : The client is the most important person in our
organization. The mission of everyone in our company is to build on the
client confidence and trust placed with us by providing "expectation-
exceeding," professional service. In order to achieve this, everyone must
know our clients: What they do, how they do it, what they expect and who
their "customers" are.
When a new client joins our firm, all senior managers meet with the client's
key staff members. Performance standards and expectations are set.
Operational and communication procedures are established. This
information is then disseminated throughout the company before anyone
begins working on that client's accounts.
New employees receive complete briefings on each client before they
perform any task relating to that client.
Comp a n y spe cific training: When a new employee joins MCG, all company
policies and procedures regarding conduct and responsibilities are covered
extensively and reviewed each week for the first 4 weeks. Part of our
initial orientation program also includes
spending time with each employee in the company. This gives everyone a
chance to get to know the new employee and also gives the new person
the "big picture" of the entire operation. We have found this to be a very
rewarding step. By understanding what everyone else does in the
company provides a basis for teamwork and clarifies each individual's
contribution to the team.
Industry spe cific training: From our receptionist to our collectors and our
mail clerk, all employees are required to receive training in the laws that
Merchants’ Credit Guide Company 9 Overview
10. govern our industry. We have award winning PC software designed by the
American Collectors Association that trains, reinforces, and tests all our
employees on all aspects of the federal Fair Debt Collection Practices Act.
After completing the lessons, the employees are given a series of tests
which requires an 80% or better to be considered satisfactory. Any missed
questions are reviewed and clarified with a manager to insure complete
understanding. Employees are also sent off-site to schools sponsored by
the American Collectors Association. Topics of these schools include
Professional Telephone Techniques, Customer Service, Supervisory Skills
and "Thank Goodness I'm Motivated" to name just a few.
IV. DESCRIPTION OF SERVICES
GENERAL CONTINGENT COLLECTIONS
Our success has been built around the realization and understanding that
to be effective, our collectors must be effective "salespeople." Every
collector must "sell" each debtor on the benefits of paying their bill. They
often must be problem solvers, and in many cases must help the debtor to
find a way to resolve the debt. We have found that to be successful, the
collector must utilize non-alienating communication techniques to achieve
payment, because if the collection process makes an enemy of your
debtor, payment is much less likely to be secured.
We approach your debtor as advocate, not adversary. We are acutely
aware of the importance of courtesy and professionalism while
communicating with debtors. All accounts are worked in a diplomatic and
thorough manner, with utmost attention being paid to the sensitive patient
relationship.
Our experience has taught us that by combining this approach with
diligent, methodical follow- up we have been able to consistently achieve
higher recovery rates in a virtually complaint free environment. Our
clients benefit in many ways from this approach. It requires diligent
screening in our hiring process, ongoing training and evaluation, and a low
collector to manager ratio. As a result, our performance is not hindered by
collector turnover; consistency and solid performance go hand in hand (not
just in liquidation rates, but in client service, consistent high work
standards, thorough claims coverage, etc.).
WORK STANDARDS
Our general work standards strategy is as follows:
Upon placement, each and every account will be processed through
our data center on the day it is received. Within 24 hours, the
accounts will be downloaded into our system, processed overnight,
Merchants’ Credit Guide Company 10 Overview
11. and simultaneously, the first notice to the debtor (which includes the
required "Mini-Miranda" and "Validation Notice") will be sent. This
first notice to the debtor will be sent to the address located in your
address field on the Transfer of Accounts file, and the debtor's
information file will be generated and processed into the designated
collector's queue as a "new" account.
An acknowledgment report to the client is generated at this time.
Your accounts will automatically be "linked" to other accounts in our
system for the same debtor. This is our own built- in skip tracing tool
that dramatically shortens the collection cycle by immediately
locating pertinent information on what would often otherwise have
been skip accounts.
The first phone call will be made on the fifth business day after
placement.
By day 5, all new accounts will be scheduled for immediate telephone
contact through our fully integrated Predictive Dialing System.
Phone attempts will be made at alternate times, during business
hours and non-business hours (within FDCPA guidelines). All
accounts will be assigned to a collector who is responsible for the
account until a disposition is made (insurance billed, paid-in-full,
payment arrangement, etc).
We follow a systematic and thorough procedure to insure all
accounts, no matter the balance, are given the attention needed to
effect collection.
This initial telephone effort serves two purposes:
1) Establishes two-way communication emphasizing the
importance of the matter.
2) Allows the collector to classify the account, our form of
"TRIAGE."
On all initial phone contacts the collectors ask questions and listen .
Listening allows our collectors to assess the disposition of the
account and classify it. Based on the response of the debtor to the
initial questions posed by the collector, the collector is able to
determine the appropriate action. They classify the account in one of
the following categories:
1) Promis e to Pay
2) Possible Third- Party Payer
3) Claims Hardship/Possible Charity Care
4) Disput e / Requ e sts Verification
Merchants’ Credit Guide Company 11 Overview
12. Busy signals are automatically re-queued for re-dial in 5 minute
intervals .
No answers are automatically re-queued for re-dial at another time of
day. These accounts and those without good home phone numbers
are automatically queued to additional categories:
5) Accounts with Work Phones
6) Accounts with Hom e Phones Only
7) Needs Skip Tracing
Upon initial contact, MCG’s collectors will verify that the debtor’s
name, address, and telephone number are current. All Accounts are
classified within 30 days and appropriately queued for additional
follow- up.
> 30 Calendar Days from the date of placement:
Collectors are presented with an automated work map which controls
the number of accounts to be worked for each individual category.
All are trained to work accounts at the most appropriate times of day
and week (i.e. accounts with work phones are called primarily during
the daytime hours, home phones only are called primarily in the
evening.)
All telephone numbers will receive numerous attempts between 8:00
am and 8:00 PM (in the debtor's time zone) Monday through Friday,
and 8:00 AM to 12:00 PM Saturday. This will include the telephone
numbers of debtors, responsible parties, and references, as well as
any other numbers located in the skip-tracing process.
Promis e to Pay: If it is determined the account has the means to pay,
our focus is to motivate "payment- in-full." When "payment- in-full" is
not possible, an attempt is made to work out an appropriate
payment schedule.
When a promise is received on an account, a code is entered that
requires a promise amount and due date. This account will not be
presented to them again unless the debtor does not pay by the due
date. At this time the account will be presented under Broken
Promise Follow-up for immediate attention. To increase the
likelihood of contact, Broken Promises are followed- up at the same
time of the day that the original promise was made unless no contact
is made after several attempts.
When a front- line collector has determined that a debtor is unable to
make payment in full, we will seek the largest possible down
payment on a weekly or monthly repayment schedule.
MCG’s "Partial Payment Arrangement" module tracks each partial
payment arrangement (PPA) account until the date the payment is
due. A "reminder" letter is sent 10 days prior to payment due date,
Merchants’ Credit Guide Company 12 Overview
13. and a "broken promise" letter is sent within 24 business hours of a
payment default. Payment default accounts are placed in the
collector's "priority" queue immediately upon notification of a
defaulted payment.
All repayment arrangements will be monitored for consistency of
payment and the viability of the arrangement. If an agreement is
broken, the debtor will be contacted immediately upon determination
that the agreement is broken.
For the debtors /guarantors' convenience we accept Visa,
MasterCard, and Western Union Quick Collect and Direct Checks.
They may also pay by check or credit card on-line.
Possible Third- Party Payer: During the triage or classification
process, our collectors will often uncover insurances that have
denied or underpaid claims. Other scenarios include workers'
compensation, accident cases, crime victims, etc. These accounts
are further classified for appropriate follow- up with the insurance
companies, attorneys, or agencies. Our collectors will pursue these
third- parties accordingly until payment of claim or denial of
responsibility, in which case the collector will then again contact the
debtor.
Claims Hardship/Possible Charity Care: Legitimate hardship cases
are approached with diplomacy and respect in terms of finding
alternative sources of funds or working with the debtor to arrange a
manageable payment arrangement. Where the patient
demonstrates their situation falls within our clients’ charity care
guidelines, we direct the patient to the client’s charity care program.
Disput e / Requ e sts Verification: By law, we are required to provide
written verification of the debt if the debtor requests it or disputes
any portion of the debt. In these cases, we cannot contact the
debtor again until verification has been sent, therefore we send you
a letter requesting the appropriate information to be sent to
Merchants’ for mailing to the debtor. The system automatically
queues the account for collector follow- up 10 days later.
Needs Skip Tracing: We skip trace the accounts that have moved or
changed phone numbers. Accounts with no phones numbers are
first sent a series of letters, then are electronically matched up to a
national telephone search directory on a monthly batch basis.
Credit information will be analyzed for new address and place of
employment notations.
Our technology, skip tracing capabilities, and automation are all
support functions for our collectors. Once contact is established with
a debtor, all contact will be personally handled by the assigned
Merchants’ Credit Guide Company 13 Overview
14. collector. Each collector's supervisor or Manager will review the
collector’s progress and performance on a weekly basis.
All activity and collector notes will be updated on-line in our system.
A complete account history report for each debtor will be maintained
and stored for immediate access, and retained until contract
termination, according to our client's requirements.
COLLECTION LETTERS
MCG’s written communications are designed to meet all requirements of
both Federal and State regulations. All letters sent by MCG are pre-printed
and include return envelopes for the convenience of payment.
All letters are set up on an automated tracking series within our collection
system which guarantees that a record of all correspondence is maintained
on-line in our system.
All letters are pre-approved by our clients and by our association lawyers to
insure they comply with state & federal laws. Our letters are then "hard-
coded" into our system and cannot be altered without management
approval.
Should our clients desire to run special collection campaigns, MCG can
customize any letter or telephone program to address backlogs or special
needs.
TELEPHONE CONTACTS
MCG’s telephone contact methods and techniques utilize a counseling
approach. Our collectors advise the debtor of the problem, then fully
explain the situation and the possible repercussions of non-payment of
the debt. At this point, the collector offers to assist the debtor in resolving
the problem by suggesting ways in which the debtor can repay the debt,
while pointing out the advantages and disadvantages of each option. This
approach conveys to the debtor that we want to work with him/her to
solve the problem as quickly as possible. Additionally, this approach
enables our collectors to respond to the debtor's objections to paying the
bill. By not making an enemy of the debtor, and clearly explaining all the
options for payment and ramifications of non-payment, MCG’s firm,
professional approach is far more likely to secure payment than the
abrasive hard line approach employed by many agencies. We teach our
collectors to approach each debtor professionally, treat them with dignity,
yet never lose sight of the purpose of the call: Payment of the Balance .
Merchants’ Credit Guide Company 14 Overview
15. MCG uses pro-active management on our collection floor. All collector
activity is monitored, such as the number of attempts made per day, and
the number of contacts made per day; as well as payments, promises,
broken promises, disputes and complaints. We use contests and incentive
programs to promote quality work activity, and reward our collectors and
managers well for excellence.
SKIP TRACING
Skip tracing is a natural part of the collection process, and collectors must
have the proper training and tools to do their jobs well. MCG utilizes
several investigative techniques to locate a debtor who has relocated.
Some examples of our skip tracing resources are:
Experian
Trans Union
Equifax
First Data
Axciom / Insight
CREDIT BUREAU REPORTING:
At your option we will list your accounts with up to three Credit Bureaus
(when placed for contingency collection). The ability to report your
accounts to the Credit Bureau motivates many accounts to pay quickly.
We wait a period of 60 days before reporting the account. This avoids
reporting those individuals who have a sincere intention to resolve their
obligation and it gives the debtor an incentive to settle the account
promptly.
MONITORING WORKERS’ COMP AND THIRD-PARTY LIABILITYCASES
Workers' Compensation is an area in which most healthcare providers do
not have the time or specifically designed systems to handle cost-
effectively. Often these cases tie up significant amounts of receivables for
an extended period of time.
MCG has invested a great deal of time and resources in researching and
developing successful processes for bringing these accounts to resolution
in the shortest amount of time. To this end, our staff has developed a
strong working knowledge of the "system" through which these accounts
flow. These specialized areas include the Industrial Commission,
Department of Labor, the Director of Insurance for the state of Illinois and
the Workers' Compensation Carriers themselves. We have a strong
working knowledge of these organizations and have been successful in
bringing these cases to a quick and profitable resolution for our clients.
Merchants’ Credit Guide Company 15 Overview
16. Third-party liability (personal injury, auto liability, etc.) cases generally
involve prolonged settlement processes. The key to the highest possible
recovery on accounts in this category is consistent follow- up; timely phone
calls and letters to the appropriate parties. MCG has developed a
systematic approach to file liens and systematically monitor these cases to
insure these opportunities do not "slip through the cracks."
Crucial to the success of these types of programs is timely referral of
these cases. Once an account has been identified as workers' comp or
third- party liability, we recommend the client refer the account with all the
necessary information to us for immediate and appropriate follow- up.
For a reduced contingent fee, our clients can refer their workers'
compensation and third- party liability cases to MCG to access our
specialized and expert processes to expedite resolution.
PARTIAL PAYMENT PLAN MONITORING
MCG offers Partial Payment Plan Monitoring to its clients, also at a reduced
contingent fee to its clients. These Payment Plans would be referred to
MCG after our client has agreed to accept payments on accounts owed by
the patient/guarantor. MCG's Payment Plan module allows for weekly, bi-
monthly, and monthly terms with reminder notices with return envelopes
sent 7 days prior to due date and late notices 3 days after payment was
due if not received on time. Scripted telephone follow- up is then starts 10
days after a missed payment date. We will attempt telephone contact for
10 days, including up to seven attempts or until contact is made. If
payments are not brought current within 30 days from the missed due
date, MCG notifies the client of the broken arrangement and recommends
the account be placed for collection.
This service may be performed in either the client’s name or under our
third- party name. If you wanted to use our third- part name, our initial
letter to the patient would explain that the account is not in "collection"
but we are simply monitoring the payment plan on our client's behalf.
MEDICARE DEDUCTIBLES
To fulfill Medicare due-diligent requirements, special care is taken in the
handling of Medicare deductible patients placed for collection. This
program we offer emphasizes a "soft," counseling approach using letters
and phone calls. We encourage Medicare patients to make monthly partial
payment arrangements that are within their means.
EXTENDED BUSINESS OFFICE (EBO) SERVICES
Merchants’ Credit Guide Company 16 Overview
17. The driving force behind the development of the Customized "EBO"
Services was, quite simply, our client's goals:
Improve effectiveness.
Reduce overhead and/or allocate resources more
effectively.
Increase cash-flow.
What is the key to achieving our clients' goals?
1) Access to Technology. By providing our clients access to
specialized computer systems and software not usually
available in-house, we can reach economies of scale and
resource efficiencies more effectively.
2) Experienced, Knowledgeable Staff. Our staff is trained to
understand the objectives of our clients. As an
extension of your business office, we are keenly aware of
the importance of debtor relations.
The approaches at the "Early- Out" stage is to supplement your internal
billing/telephone procedures We do not act as a collection agency, but
rather as an agent for our client, using the client’s letterhead for
notices/statements. In addition, we can provide telephone campaigns
calling as an extension of your business office. Custom telephone scripts
and letters (developed with each individual client) are used when
contacting the accounts.
The process we have developed for early- out is concise, fully automated,
and effective. Together, with our client's initial statements to the debtor,
we give the debtor every opportunity to make their intentions known. If a
debtor fails to make or arrange payment under these time lines and
activities, then the account should be considered a candidate for third-
party intervention.
PRE-COLLECTION SERVICES
We can specifically tailor a pre-collection effort designed to meet your
needs. Our Pre-Collection Program offers a diplomatic, simple,
inexpensive and highly effective method to substantially reduce accounts
receivable expenses, and increase cash flow. These programs were
developed to assist our clients in making their in-house efforts less
expensive, less time- consuming, and more effective.
When a collection agency is selected, the primary interest is in having
money collected. However, recoveries must be made in a way that will
not reflect unfavorably on the client. We consider the importance of
debtor relations to be absolutely critical in maintaining any long term
client partnership. MCG has designed a pre-collection program to meet
Merchants’ Credit Guide Company 17 Overview
18. your needs in this area. Our system is time- activated, yet fully controlled
by your office. Attempts to contact debtors can be made by both mail and
telephone.
LITIGATION CAPABILITIES
We will recommend litigation when the criteria mutually established with
our client has been met. At no time will we proceed with litigation without
your expressed written authorization. Generally, MCG will advance court
costs on our clients' behalf. These costs are reimbursed from the first
monies collected.
We are associated with, and have developed, a long-standing network of
attorneys nationwide, in order to facilitate bringing suit in each debtor's
county of residence.
When an account meets the criteria for suit, our Pre-legal Manager will
prepare a request for written authorization to be sent to the client. Upon
approval and receipt of the necessary documentation, the account is
immediately forwarded to our collection attorney for immediate legal
action.
We pursue every possible avenue to help the debtor to pay on a voluntary,
timely basis. However, when they simply refuse to cooperate, yet have
the necessary assets or resources to pay, we will recommend suit.
Standard criteria for suit request (adjusted according to individual client
requirements) are:
Balance requirements have been met
The debtor shows no effort to pay
Income or assets have been verified (such as property
ownership, bank funds, employment, etc.)
Drawing on years of experience, our legal affiliates excel in the procedures
and techniques needed to conclude the most complicated collection
matters. It is the Pre-legal manager's responsibility to monitor account
status, and act as liaison between our clients and our attorneys on such
matters corresponding with the attorneys, and follow up on settlement
offers, trial dates, witness requests, etc.
Our attorney firms are required to provide monthly status reports on each
of our active accounts in their inventory. Additionally, we may request a
detailed narrative on any given account involving legal action.
Management regularly reviews our attorneys to evaluate performance,
and compliance with our procedures and work standards.
Our goal is to collect your accounts in full, without the additional time and
cost of litigation, and we pursue every possible avenue to help the patient
to pay on a voluntary basis.
Merchants’ Credit Guide Company 18 Overview
21. Network Security is maintained by our:
Cisco PIX Firewall
Cisco VPN Client
MCG has implemented several measures to insure the security of our
clients' data. All access to the computer system itself is protected by a
multiple password scheme. If you are connecting to the system from
outside of the physical MCG facility, a password is required to get to the
banner and normal user log on. Therefore, an outsider would not even
know what type of system they are trying to access without first knowing
this system password. Once access to the system has been granted, the
user must then use a user name/password to actually use system
resources. This combination is unique to each user, and identifies to the
system software what capabilities that particular user is allowed to have.
The system is designed so that clients are allowed to only access their
accounts.
MCG has always enjoyed the full support of our hardware and software
providers, who have on-line access to our system, and maintains a full-
time, dedicated programming staff of five. Together, we are willing to do
whatever is required to make MCG's system and its client's systems
compatible, including acquiring additional software or hardware (if
needed).
MCG has a thorough "Business Resumption Plan" in place in
the event of an emergency such as fire, flood, or earthquake.
Remote facilities, including telephone and computer systems
are provided by a mutual agreement with another agency fifty
miles away.
Automated backup runs nightly.
A two week rotation of daily backup tapes is kept secured.
On-site backups are stored in a fire retardant safe.
Off-site backups are stored at two separate locations
Daily backups are rotated between on-site and off-site storage.
System backups are done quarterly and after any updates.
Copies of previous versions are kept on media.
Backups are kept on two separate media: IPL device media and
one additional redundant set from separate tape drive.
REPORTING
All of our standard reports are industry accepted and have been designed
for, and approved by, all of our lender- clients. Our computer system
features state- of-the-art query capability to make statistical information
readily available.
Our staff will work closely with our client's staff in designing and creating
any additional specialized reports that you may require, including those
requested by our client on an ad-hoc basis.
Merchants’ Credit Guide Company 21 Overview
22. We can create a reporting structure and frequency designed to meet each
of our client's needs and requirements. The following is a list of standard
reports.
Acknowledgment of Referred Accounts - confirms new business
received on a daily or monthly basis
Status Report of Active Inventory - provides summary of the
collection status on all open and active accounts.
Remittance Advice- weekly, semi-monthly, or monthly collection
statement provides a full detail of collections for the period.
Performance/Productivity Reports - A summary of monthly
collection recovery percentages and year-to-date totals are available
in a variety of flavors. Payments, performance and productivity can
be measured in a variety of increments.
Activity History - a statistical report which analyzes placements and
payments by placement and month of activity.
REMOTE ACCESS BY CLIENT
Our software and hardware is designed to allow clients access to our
database through our "On-Line Client" module. This allows our clients to
securely access our system over any internet connection.
VI. LICENSING/BONDING/INSURANCE
MCG is licensed in Illinois and all other states that require licensing.
Copies of these licenses are available upon request.
We are bonded through the American Collectors Association and subscribe
to the Code of Ethics of the Association.
MCG maintains a $2,000,000 Errors and Omissions policy and agrees to
indemnify and hold harmless its clients from and against any and all
claims, actions, losses, or expenses, including attorney's fees suffered by
our clients as a result of MCG's actions or inactions with respect to any
account including any alleged or actual violation of federal, state, or local
law, or any negligent or unauthorized act by MCG or its officers and/or its
employees.
MCG requests that its clients indemnify and hold harmless MCG from and
against any and all claims, actions, losses, or expenses, including
attorney's fees suffered by MCG as the result of its client's actions or
Merchants’ Credit Guide Company 22 Overview
23. inactions with respect to any account placed with MCG by its client
including specifically and alleged or actual violation of federal, state, or
local law, or any negligent or unauthorized act by its client, its officers
and/or employees.
VII. SUMMARY
It is very difficult to communicate what it is like to work with MCG on a day
to day basis through a proposal format. The level of cooperation we
provide to our clients, and the quality we deliver throughout every level of
our organization simply cannot be appreciated through a written
document.
We have concentrated our resources on client service, and as a result we
have grown primarily through client referrals and expanded portfolios from
current clients. Our goal has been to develop long-term quality client
partnerships by clearly identifying our clients needs and requirements, and
meeting or exceeding them, every day. As our references will attest, this
approach to our success has been a tremendous advantage for our clients.
The quality of our efforts has resulted in a cooperative atmosphere of
confidence and trust, leading to increased revenues for our clients and
improved working conditions for all concerned.
In essence, rather than continually trying to re-invent the wheel, we have
concentrated our efforts on refining and improving what we do best.
We feel that we have one of the most progressive collection agencies in
the state of Illinois. Our clients tell us that our dedication to quality and
excellence has consistently kept us a step above our competition.
There is no magic to the collection process. What we can guarantee you is
a consistent professionalism and progressiveness, which will help us to
continue to obtain optimal recovery rates for each and every one of our
clients.
Our level of our computerization, our willingness to upgrade and customize
to meet your changing needs and the confidence developed through our
understanding of how to maintain long-term client relationships, all make
us an excellent selection to become your collection resource.
Should you choose to utilize Merchants’ Credit Guide Co. as your
agency, we are confident that you will find our cooperation, ethics,
and effectiveness, unmatched in the collection industry.
Merchants’ Credit Guide Company 23 Overview
