Question

Imagine that you have a patient who refuses to pay his/her bill. Write a collection letter, final notice, and termination.

On this page, describe the process you’d follow in using these letters with a patient who refuses to pay. Would you continue to provide services? Would you involve a collection agency? Your response should be approximately 2 paragraphs.

Your letters should be in professional letter format. You can make up a practice name and patient name.

Answer 1

• Collection letter

Dear Mr. Joe Jack,

It’s the policy of Allcare Hospital to contact our patients who have not responded even 30 days after receiving a bill from us. We have tried unsuccessfully for one month to collect this delinquent account and avoid any unpleasant communication. Every consideration has been made to facilitate at least a part payment from you, but you have failed to respond by any means.

I urge you to make at least a partial payment of $100 by 01/01/2020 to protect your credit score. Be ready to face any unpleasant consequences if payment is not made by this date. We will be forced to proceed with further actions including but not limited to the involvement of collection agencies. We hope to avoid this step. Kindly make your payment promptly.

Sincerely,

Patient Accounts Coordinator

• Final notice letter

Dear Mr. Joe Jack,

We have made several unsuccessful attempts to work with you to clear your delinquent account. Your bill payment is now 45 days overdue with a total of $650 balance. If you can’t make full payment of $650, make a partial payment for 50% of the overdue amount by 01/15/2020 and pay the balance 50% by 02/05/2020.

Failure to make any payment by 01/15/2020 would lead to unpleasant consequences including the involvement of an outside collector unless you contact us to make satisfactory payment arrangements. We don’t want to take this extreme step; however, we will abide by your choice. Please call our office at (919) 742-6178 for any further clarification.

Sincerely,

Patient Accounts Coordinator

• Termination letter

Dear Mr. Joe Jack,

Because your balance of $650 is two months overdue and you have been unwilling to make or arrange payment, Allcare Hospital is forwarding the balance of your account, $650, for outside collection activity and inactivating Joe Jack’s chart. By these actions, we are terminating our status as Joe Jack’s dermatologist.

We will provide emergency care should he need it within thirty days from the date of this letter. Joe Jack’s treatment was complete at the time of his last appointment. We will assume you are seeking care elsewhere unless you contact our office by 01/15/2020. We, therefore, are free from the responsibility for Joe Jack’s further dermatology and other care needs.

Sincerely,

Patient Accounts Coordinator