CMS Ruling re. Medicare Bad Debt:
"In no case is an unpaid Medicare account which is in collection, including at a collection agency, an allowable bad debt under the regulations. It is Medicare's policy not to reimburse hospital and non-hospital providers for Medicare bad debts while an account is at a collection agency."
CMS Clarification of Medicare Bad Debt Policy/Bad Debt Policy Related to Accounts at a Collection Agency
May 2, 2008
According to recent CMS rulings, if collection efforts are continuing on your hospital-owned accounts, even via third-party collection agencies, your hospital is very likely out of compliance. The only way to recoup additional money (from self-pay Medicare and Non-Medicare receivables) is to sell the receivable.
Given their experience and expertise in analyzing and recovering receivables, Capio might represent an immediate solution to cash improvement goals for your organization. It's a fairly simple matter to assess and purchase your portfolio of third-party and self-pay debt. If your hospital might be interested in selling receivables, we would welcome an opportunity to meet in person or via a conference call to see if Capio might be able to provide you the receivables purchasing and servicing option that you would need.
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