New On-line Payment Service Aims to Speed Small Balance Collections

In the world of health care collections, trying to collect small balance receivables can quickly become more costly than lucrative if recoveries aren’t handled efficiently. GlobeFunder Receivable Solution, LLC, a new technology solutions firm targeting the accounts receivable management industry, has developed a web-based service it believes will increase recoveries and drive down costs by incentivizing consumers with delinquent bills to pay up.

The online tool called IOUSOS works on the premise that debtors will get the best discount if they act quickly, allowing health care providers to recover debt they might otherwise have written off against their taxes or sold to a debt buyer.   

GlobeFunder Chief Executive Brian Mullally told insideARM that IOUSOS’ focus is delinquent medical debt balances under $500. The service, however, can be used by other industries, including ARM professionals, to reach and conduct business with consumers in a way that is comfortable for them.  

“There is a void in the marketplace and collectors and creditors are struggling with how to efficiently work those accounts,” Mullally said. “We think with smaller accounts, the technology we utilize can reach a new segment of the market not getting the appropriate attention from a recovery perspective.”

The Billing Tree of Phoenix, Ariz., also provides on-demand payment solutions for health care billing and receivables.   Debt balances, however, aren’t limited and debtors may not be offered immediate discounts to settle their debt, said Justin Gray, a spokesman for Billing Tree, formerly Electronic Payment Providers.

After a debtor is contacted by GlobeFunder on the creditor’s behalf, he is invited to visit IOUSOS.com to learn how much he owes and how much the creditor is willing to accept to settle the account if paid immediately.  After logging onto the network to see the bill, the debtor is presented with three offers to settle the debt for less than the original balance. The first offer provides the greatest savings if paid within the 24 hours, Mullally said.   

“We have seen discounts up to 85 or 90 percent on our platform.  It’s the creditors or agencies call,” he said.  

Mullally said payment can be made by check, debit or credit card, or the debtor may contact an IOUSOS representative to arrange a payment plan.  If the debtor misses the deadlines to accept any of the offers, the discounts are rescinded and the full balance will be pursued.