What is not worth sending to a collections agency?

Sending small balances to a collections agency is generally not worth the effort or cost associated with the collections process. Balances under $10 are typically considered too small to justify the expense and time needed to pursue collection.

When a practice decides to send accounts to collections, they must take into account the resources required to process the claim, the potential impact on patient relationships, and the likelihood of recovering the debt. Small balances often entail more administrative work than the amount of money that can realistically be recovered. For instance, the cost of reviewing, processing, and possibly paying a third-party collector often exceeds the amount owed, making such balances impractical to pursue.

Furthermore, sending small amounts to collections might negatively affect patient satisfaction and future interactions. This can lead to patients feeling frustrated or alienated, which is detrimental to building long-term relationships.

In contrast, larger balances, such as those under $50 or more, are seen as having enough monetary value to pursue through a collections agency, making them a more logical choice for writing off as losses or trying to collect.