According to industry standards, after how many days should a collection agency be considered?

The appropriate timeframe for considering the engagement of a collection agency is typically 60 to 90 days. This period allows the practice to establish a reasonable effort to collect the outstanding debts through internal processes before escalating the matter to an external agency. During the initial days, attempts such as reminder calls, payment plans, or letters may be issued, and it is essential for the practice to document these collection efforts as they enhance the likelihood of successful debt recovery and may also impact the practice's overall cash flow.

Waiting until the 60-90 day mark acknowledges that some patients may need reminders or additional time to pay, while also recognizing that prolonged delays can hurt the practice’s financial stability. Engaging a collection agency too early can disrupt patient relationships and may result in lost revenue opportunities, as some patients may need additional time to resolve their financial situations.

Overall, understanding the timing and rationale for bringing on a collection agency helps practices balance effective collections with maintaining positive patient relationships and financial health.