This article provides a brief overview of the state of the debt collection business. Why is this important to doctors and medical billing along with collection practices? Because one of the main reasons this business is thriving is because of the medical debt incurred by consumers these days.
Medical Debt as well as Bankruptcies
According to: Health-related Bankruptcy in the United States, 2007: Results of a Nationwide Study, by Donald U. Himmelstein, et. 's., American Journal of medication, 2009:
• 62.1% coming from all bankruptcies are related to any medical issue.
• Bankruptcies that could be attributed to health problems increased by 50% in between 2001 and 3 years ago.
• 75% of medical consumers had health insurance.
There is certainly opportunity for savvy physician practices and health-related billing firms to get what is owed these people.
Booming debt agencies and collection practices
The Bureau on the job Statistics (BLS) predicts the debt collection industry development of 23% between now along with 2016. Leading the way for these companies will be doctor's offices and hospitals.
New technological innovation is making it profitable for even small scale internet marketers to get into the debt collection industry, increasing the variety of companies in the business. Smart Money magazine studies that debt collection agencies get recovered almost $40 thousand in debt or about $133 for every person in the US. In reality, in 2005, US businesses forwarded $141 billion dollars in delinquent consumer debt to collection. The agencies collected $51 billion of that debt keeping an income of about 25%.
To show the amount of money can be made from amassing consumer debts, consider this example. The Boston Globe reported that the Virginia based business, Portfolio Recovery Colleagues (PRA), bought debt worth $16.4 million in face value. The corporation paid $415.4 trillion for that debt that came out to about Two.5 cents around the dollar. PRA collected about 7.5 dollars per debt greenback eventually posting a return of $36.8 trillion in 2005.
For this reason profit potential, small mommy and pop organization are finding it more likely that a collection organization will help them. Towns are also using debt collectors to help collect delayed parking tickets along with library fines.
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