PredictiveMetrics Launches MedicalRecovery Score

PredictiveMetrics (PMI), a leading provider of statistical scoring solutions, announced Wendesday that it has launched MedicalRecovery Score, statistical model for recovering medical debt.

MedicalRecovery Score provides three scores on debtors. The first is the traditional probability that a debt will be paid in a given amount of time, the second predicts the amount that will be paid, and the third predicts the expected liquidation of balance. This combination of receiving a payer score, dollar score, and a liquidation score as well as the extensive reporting PMI provides gives an agency a superior tool for prioritizing medical debt, while expending collection resources and personnel more effectively.

For many collection agencies, medical recovery is their entire business or a substantial portion.  “With margins smaller and recoveries harder, PMI recognized the demand to have a decision tool designed specifically for recovering medical debt. A model developed primarily on medical charged-off data is a much more powerful predictor of medical liquidation than a model that uses various types of bad debt with different payment characteristics,” states Ted Shalack, director of analytical services and consulting actuary, PMI.

MedicalRecovery Score is an empirically derived, multivariate statistical model that was developed by using payment behavior specific to charged-off medical debt. PMI applied proprietary statistical techniques to more than five million observations and blended it with socio-economic and demographic data supplied by PMI.  The information is specific to medical debt, age and balance, as well as the prior performance of the agency involved. No bureau data is required to produce these accurate scores. An agency’s own internal medical placement data, which is readily available and free, is the driving force of the model’s predictiveness.

In addition to providing clients with payer scores, dollar scores, and liquidation scores, PMI provides advanced reporting allowing customers to base collection strategies on cost and impact. The model scores and reports are straight forward and easily accessible via secure FTP.  File transfer typically occurs through encrypted FTP exchange, minimizing IT resources. To ensure ongoing model predictiveness and profitable results, MedicalRecovery Score is continually validated and refitted.

MedicalRecovery Score joins a suite of PredictiveMetrics’ other collection scoring products including UltraRecovery Score, UtilityScore, and DebtBuyerScore.