Why Outsourcing?

Our market research indicates that, from a pure cash-flow perspective, a practice can gain between 28% and 47% in their account management effectiveness. These gains are directly linked to reductions in cost overheads and radical improvements in realized revenue collections for the Practice.

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In more detail, if we consider the ratio between ‘Accounts Invoiced’ and ‘Accounts Received’ less the Recovery costs involved we can have a pretty good measure for the Effectives of your practice’s Account Management processes.

• Where the Doctor manages the accounts, the ‘Recovery Effectives’ is around 45%, meaning that only 45% of service effort is converted into real income.
                  *Based on a ‘Recovery Rate’ of 70% and a ‘Cost of Recovery’ of 25%, on average.
• Where there is a dedicated account manager, the ‘Recovery Effectives’ is around 63%, meaning that only 63% of service effort is converted into real income.
                   *Based on a ‘Recovery Rate’ of 80% and a ‘Cost of Recovery’ of 17%, on average.
• Where the Account Management function is outsourced to FORTE Medical the ‘Recovery Effectives’ is around 91%, meaning that 91% of service effort is converted into real income.
                   *Based on a ‘Recovery Rate’ of 98% and a ‘Cost of Recovery’ of 6.5%, on average.