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SOLUTIONS FOR YOUR PRACTICE A/R MANAGEMENT ® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022 Transworld Systems Inc. Company Overview • • • • In business since 1970 60,000+ clients 100 Offices Nationwide Recovered $2.4 billion in the last 5 years for companies across all industries including Fortune 500 & 100 Companies • Success rate of more than 4 times that of the industry average* • 24/7 Online account management *Based on ACA Statistics ® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022 Transworld Systems Inc. An MGMA AdminiServe Partner for Over 10 Years • One of only 15 companies in this preferred supplier network ® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022 Endorsed by the Mississippi State Medical Association ® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022 What the Experts Say “The company has a collection rate of well over 50%. The typical collection firm gets only 20% and keeps 25% to 50% of recovered funds.” Fortune Magazine “The numbers speak for themselves – recovery of over $230 million dollars with a 53% recovery rate and an ROI of almost 4,000% with a collection cost of 2.5%.” Steve Hellebush, VP of Business Development, Medical Group Management Association “Transworld gets credit for the highest recovery rate in the industry.” Barron’s ® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022 Conventional Two Stage Approach Most practices use a conventional, two stage approach: In-House Efforts Percentage Collection Agency Day 30 Day 60 Day 90 Day 120 Day 150 Statement Statement Statement, Letter #1, Phone Calls Statement, Letter #2, Phone Calls Statement, Letter #3, Phone Calls Day 180 Intensive telephone contact and/or legal action at a cost of 25-50% of recovered amounts. According to the Dartnell Institute of Business Research, the average cost to work an account over a six month period is $31.60 ® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022 GreenFlag Three Stage Approach In-House Efforts Transworld Systems Conventional Collection Methods ® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022 GreenFlag Profit Recovery’s Three Stage Approach Optimize In-House Efforts Current 30 Days 60 Days Statement Statement Phone Call Statement Phone Call Limit internal efforts to less than $10 per account 90 Days In-House Use of Third Party (GreenFlag) Conventional Collection Methods 104 Days 118 Days 132 Days 146 Days We contact the slow paying accounts every 10-14 days, at the your direction. Making up to 5 contacts, each progressively stronger – Phase I Collections. Fixed fee of typically less than $10 per account. You control the process. 180 Days Verbal Demands – Phase II Collections 50% Contingency ® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022 Start Early – Recover More According to the U.S. Department of Commerce, the older an account, the harder it is to collect. Fact: Companies wait to take action because they don’t want to pay a percentage and they don’t want to alienate their patient. Fact: GreenFlag is designed to take action early and diplomatically, recovering earlier and maintaining valuable patient relationships. ® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022 Start Early – Recover More National Statistics Prove it • Transworld Systems’ clients experience a recovery rate averaging 46.8% at a collection cost of 2.7%. • The American Collectors Association reports an industry recovery rate average of 15% and a collection cost averaging 30%. ® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022 Convenient Online Access • Submit accounts online 24/7 via our secure Online Client Portal (OCP) • You control when to start, stop, or suspend accounts • Complete reporting on all accounts • Upload spreadsheets with account information and submit large groups of accounts instantly • Easy to learn, helpful tutorials, and superior online support ® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022 The Demands: First Party Letter First Party Letter • “…appears to be from our clients office. Final notice or be placed in collection.” Client return address: • Matches your remittance address First Party Letter: (Option) • Intensive Final Notice Remittance Voucher • Money goes directly to you (envelope included) ® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022 The Demands: Third Party Letter Third Party Intervention • “…from a collection agency” Local Impact: • Matches zip code of debtor to the nearest TSI regional office You Choose: • 2nd Demand (would follow 1st party letter) • 1st Demand Remittance Voucher • Money comes directly to you (envelope included) ® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022 The Demands: Why Do They Work So Well? • • • • • • Return address is from one of our 100 offices nationwide Increasingly more intense, alternating between credit card statement size and full letter size Sent every 14 days, systematically unless client stops service Strategic language = psychological impact Demands sent in varying sizes, and different envelopes Optional, diplomatic thank you letter helps you retain your valued patients. ® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022 Thank You Letter At your request, we’ll send a thank you letter to your patient, at no additional cost! This will help your practice retain valuable patient relationships. ® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022 The Power of Third Party Intervention Why is contact from an outside party more effective than in-house efforts? • The debtor knows you are serious about getting your money. • The debtor is concerned his debt will affect his ability to get credit. • The debtor knows the efforts to collect will continue until he pays. ® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022 The GreenFlag Advantage •Standardizes the A/R process for slow paying accounts •Our service guarantees these accounts are contacted every 10-14 days •Identify and evaluate existing A/R •Effective tool for clean-up •Completed within 90 days •Gives the practice/business the advantage of using a third party, diplomatic approach earlier in the process •Preserves patient/debtor relationships •Reduces internal collection costs and staff overload ® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022 Self-Pay Recover Results Example Average Balance Average Age Recovery Rate % Response Cost as a % Women’s Group $241.28 4.5 mos 48.1% 70.3% 7.6% Neuropsych $466.44 3.3 mos 38.5% 40.5% 8.8% Birth & Beyond $211.37 3.7 mos 44.3% 61.6% 11.1% Oncology $348.79 7.1 mos 33.1% 42.8% 6.9% Surgery $648.64 3.8 mos 35.4% 53.2% 3.4% Family Med $196.18 5.9 mos 27.9% 39.6% 12.9% Orthopedic $532.19 4.3 mos 46.2% 69.7% 3.2% Pain Consultant $381.59 10.7 mos 31.2% 50.2% 6.7% Combined Average $378.31 5.4 mos 38.1% 53.5% 7.6% Practice ® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022 Why it Works • We provide the impact of third party for an average of less than $10* per account while minimizing internal efforts • Preserve your valued patient relationships. • Complete monthly reporting on all accounts. • Interactive, secure Online Client Portal (OCP) that allows you to submit accounts instantly. • Return address is from closest debtor office which is zip code activated. Local impact! • Size changes from mailgram to letter every 10 days. • Return payment envelope & tear off voucher 1st, 3rd and 5th demands – The only thing we don’t do is lick the stamp! • FDCPA Disclaimer at bottom of 1st Demand *Company Average ® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022 GreenFlag vs. Contingency Agency Assumptions: Accounts Submitted: Average Balance: $ Outstanding: 5,000 accounts $350 $1,750,000 Greenflag Profit Recovery Other Agency Est. Recovery Rate: 25% 14% Est. $ Recovered: $437,500 $245,000 Collection Cost: $7.99/acct 35% Total Cost: $39,950 $85,750 Net $ Recovered: $397,550 $159,250 Difference: +$238,300 Secondary Recoveries*: +$98,437.50 Additional profit using GreenFlag Profit Recovery by Transworld Systems, instead of a contingency collection agency alone = $238,300+$98,437.50(secondary)=$336,737.50 *Secondary recoveries for accounts not recovered by TSI forwarding to the contingency agency estimating 15% recovery rate at 50% cost. ® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022 The Power Beyond GreenFlag What happens if debtors don’t pay after the demands? • You decide the next step: Option=Verbal Demands Collection - Phase II • Seamless flow from in-house efforts to a contingency agency • Your practice benefits from a professional team of well-trained collectors using industry-leading technology from telephone centers throughout the country. • You can move to legal action and we pay all attorney and court fees. ® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022 System Size Worksheet At what point would you like to use our service? (i.e., 60, 90 days) How many accounts will reach that point every month? Our PROFIT RECOVERY service is good up to 24 months Total: ___ _____days _________ x 24 months ________ Accounts to be referred now: ________ Total number of accounts referred: _________ Total # Accounts __________x Avg. Bal. $ ________ = Total $ Referred ____________ Total $ Referred ________________x_______ (Recovery Rate %) = $ _____________ ________ (Total # Accounts) x $ ________ (Unit Cost) = $_________ (Total Investment) Investment $________ ÷ Avg. Bal. $_________ = ______ (# Accounts to get back investment) ++++++Secondary recoveries!!!! ® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022 SOLUTIONS FOR YOUR PRACTICE A/R MANAGEMENT Sara Postlethwaite Designated MSMA Consultant 866.844.4341 ext. 23 [email protected] www.web.transworldsystems.com/westpalmbeach ® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022