Health Care Industry
NJIC has handled healthcare accounts for 25+ years.
Healthcare vendors tend to be less aggressive in pursuing overdue accounts to portray a non-aggressive image to the healthcare community. Our experience shows that hospitals and other medical practices tend to have lax management regarding financial controls. Accounts payable managers exploit this situation, resulting in the industry suffering from disproportionately large overdue receivable balances. Customers may even strategically delay payment beyond agreed-to-terms with the hope of forcing vendors to write-off account balances.
Healthcare vendors then turn to traditional third-party collection agencies, but accounts payable managers understand they are impotent to file litigation or otherwise take serious action. NJIC attempts to level the playing field and maneuver delinquent health care customers into putting your unpaid invoices at the top of their payment schedules.
Results-Oriented Collection Strategies
NJIC manages these issues by formulating collection strategies after consulting with the client. Hiring a third-party collection agency avoids a potentially damaging direct confrontation with the client. We can pursue a tactful approach to resolve the dispute amicably and preserve the client relationship. Alternatively, we can pursue a more aggressive stance focused on collection results, including litigation, if necessary.
Many issues may impede debt collection, such as contract interpretation and the need for dispute resolution. To manage these issues and maintain credibility, our staff is comprised of paralegals and attorneys. Our multi-step process, honed over decades, strives to preserve market share, protect clients’ reputation, and recover the maximum amount of monies due and owing.
Client: A U.S. based publicly-held medical software development company located in St. Louis, MO.
Problem: Client was owed $39K from a surgery center corporation located in Seattle, WA which had recently gone out of business.
Solution: After further review of client’s usage reports, we were able to determine that the former doctors of the now defunct surgery center had continued using client’s software in order to access patient data which was unlicensed and otherwise illegal. We used the legal theory of “piercing the corporate veil” in order to hold the doctors personally responsible for the debt owed by the defunct debtor corporation based on the unlicensed and illegal access to our client’s software solution.
Outcome: Based on the threat of litigating this matter and naming the doctors as individual defendants, we quickly came to an amicable resolution where we recovered the full principal balance plus interest and collection fees. Time between receipt of file and payment: 30 days.
Client: A publicly held provider of rehabilitation therapy, diagnostic testing, respiratory therapy, and pharmacy services based in Pennsylvannia.
Problem: Client was owed $185K for occupational and therapy services provided to the residents of numerous long term care facilities owned and operated by the City of Philadelphia.
Solution: The debtor claimed that client’s billings were over inflated and inaccurate during a five-year billing period. The balance we sought to recover encompassed hundreds of invoices and were tied to 20 contracts. We were able to track each invoice to the correct contract and produce sign off sheets from the administrators of each facility attesting that the services performed and billed for by client’s therapists were correct.
Outcome: The City of Philadelphia agreed that any claims of over inflated billings were erroneous and agreed to pay the balance in full. Time between receipt of file and full payment: 4 months.
Client: A large publicly held international software manufacturer based in Canada.
Problem: The client was owed $125K by the U.S. Department of Defense (DOD) based in South Korea.
Solution: The file was quite intricate and involved contractual services having been provided to the debtor by another software company that our client had acquired. Based on numerous DOD regulations, we had to not only navigate recovery through these but also multiple prongs of different DOD divisions including DOD’s Legal Department. The file turned on crafting an argument we made which documented a novation of contract via DOD regs had taken place allowing our client to step into the shoes of the original software provider and thus prove that the balance due was owed to our client.
Outcome: The DOD agreed with our position and payment in full plus interest and collection fees was procured shortly thereafter on behalf of our client. Time between receipt of file and payment: 30 days.
Client: A foreign publicly held device manufacturer located in Belarus, Russia.
Problem: Client was owed $49K receivable against a debtor corporation located in Boston, MA which was refusing to pay based on its knowledge that client was in a foreign country.
Solution: Based on debtor’s failure to remit amicably, we coordinated our efforts with local counsel in Boston in order to file suit against debtor. We received a default judgment and then proceeded to enforce the judgment by requiring the owner of the debtor appear for a debtor’s exam which he failed to attend. We were able to use debtor’s failure to appear in order to obtain a civil arrest warrant from the court.
Outcome: Shortly after directing the Sheriff’s office to the residence of the debtor owner, we obtained payment for the entire judgment balance plus reimbursement for court and judgment execution costs. Time between receipt of file and payment: 14 months.
Client: A privately held auto parts manufacturer based in Omaha, NE.
Problem: Client was owed $85K by an auto parts reseller located in Ft. Lauderdale, FL.
Solution: The debtor company was under extreme financial distress, but did not want to file for bankruptcy or face litigation from our local counsel in south Florida. After reviewing debtor’s finances and exploring creative financing options, we were able to secure a reasonable 6-month payment plan tied to a promissory note by the owner of the debtor company. If the debtor company defaulted on the payment plan or filed bankruptcy, we would be able to pursue the owner personally for the balance owed.
Outcome: NJIC was able to recover the full principal plus interest and collection costs on behalf of our client. Time between receipt of file and full payment: 7 months
“We have been using the collection services of National Judgment Investment Corp. for the last decade. While our in-house team is adept at collections, there comes a time where files need to be turned over to third party professionals. Currently, NJIC is the only debt collection service we are using because of its expertise in quickly and professionally recovering our accounts receivable. We have been extremely satisfied with both NJIC’s success rate and service. More importantly, NJIC’s collection rate of dollars placed versus dollars recovered is in excess of 80%. This bottom line pleases both our Board of Directors and shareholders.”
Steven H., Credit Services Manager, Medical Device Manufacturer, NYSE listed based in Midwest.
“Since January 2015 we have discontinued using all other debt recovery agencies that we previously dealt with and are exclusively using National Judgment Investment Corporation exclusively. We have been nothing less than amazed at their ability to pursue and successfully recover our accounts receivable, many of which date back over two to three years. In fact, many of the accounts recovered by National Judgment Investment Corporation were accounts that had been previously placed with another agency who had been unsuccessful in recovering any monies due our company.”
Lorraine L., Chief Financial Officer
Manufacturer, Fortune 500 Company
“The collection firm of NJIC has performed exceptionally with the accounts we have placed with it for recovery. At least one of NJIC’s recoveries was from a company which was out of business! NJIC’s in-house legal team crafted an argument which paved the way for NJIC to make the recovery from the acquirer of the debtor company. While we have used collection firms in the past, NJIC was the first and only firm we have used which combines legal power with collection talent on a contingency fee basis. Their collection rate with our files is in excess of 80%. We highly recommend NJIC for B2B collections.”
JM., Collection & Credit Manager
Technology Company, Boca Raton, FL
“We are very satisfied with National Judgment’s debt recovery services especially during the past year of COVID. The ability to collect unpaid invoices from businesses damaged by the pandemic requires a skillful touch in getting our company’s invoices elevated to the top of the line to be paid while other creditors are knocking on the door for payment. We believe that NJIC’s attorney driven approach gets us to the front of the payment line quickly when fighting for limited dollars available to pay ever increasing creditors. I highly recommend NJIC’s services for any company experiencing non-paying customers.”
John C., Chief Financial Officer, Software Company, NASDAQ listed San Francisco, CA
“Ever since the first account I placed with NJIC, I have found their collection processes, professional team and accountability second to none. There have been several accounts which I had personally considered to be uncollectible and reserved for, yet NJIC was able to recover those delinquent accounts! Over the years I have placed many high five-figure accounts with NJIC for collection not just because of their successful rate of recovery, but because I trust them – I believe that is the most valuable quality when placing a company’s cash flow and name on the line with a third-party collector.”
Emily L., President Publishing Company, NJ
John C., Chief Financial Officer Software Company, NASDAQ listed San Francisco, CA
NJIC’s historical collection rate for the healthcare industry is 80-85%.