Does run an agent report and look at their aging buckets, the retort trading, starting the 60, 60 to 9 in the…
I need to 120 and maybe think over 100, 20 days, but just see how much money you got hanging out there.
This episode is brought to you by Transworld Systems. For the best 22 years, Jeff has had the privilege to work with small business owners in Fortune 500 companies to enhance their back-off as processes with technologies to reduce costs, improve profitability and create great growth opportunities. Transworld Systems brings knowledge, experience expertise in superior technology with products that are embraced by thousands of medical facilities, banks, schools and universities.
Transworld Systems has helped clients grow their business and recover billions of dollars over the past 50 years. Enjoy the show.
Welcome back to The prospecting show. Today, we have Jeff endorsing the call. How are you?
I’m good, I’m good. Dr. Robertson, I appreciate the invite.
Yeah, absolutely. So to start off here, give us low background on trans-world systems and your role and how you’re serving the community, what do you do… Okay, sure. Well, Transworld Systems turns 50 years old this year. We have been providing a cancer seabl analysis debt recovery to the business and medical community for since 1970.What my role is is to help business owners, and I die mainly into the healthcare space, ’cause that seems to be the biggest play gram for us to play in in helping doctors and dentists, but we assist him in operations as far as helping them streamline processes, identify ways that we can help them improve their bottom lines, we also integrate with a lot of the major software, both of medical and dental space, and just show them how we can streamline processes and with our service that has work… It’s a proven system, it’s work for 50 years. How we can cost-effectively get their dollars in the door, and so they can keep more of their money.
And so for the people who don’t necessarily understand this piece of it, maybe their clinicians, they’re not really the business people, and maybe walk through why this would be an important thing to start outsourcing or looking at outsourcing.
Well, when I started with Transworld, April V 22 years, the landscape was a lot different at that time, most medical practices, 80 to 90% of their revenue was generated by insurance companies, they filed a claim and I got paid… Well, that landscape has changed, so now the responsibility of payment has shifted more towards the patient because higher deductible is a lot more uninsured people, and it’s a problem with health care providers getting paid because they’re chasing that money on services they’ve already provided.
So what we do is we help them identify those issues, we show them how we are very professional and we don’t alienate their patients and… And how we can help them identify ways to get their dollars in the door without them having to write off a ton of money every year.
And the other thing is, we can show them how to help with some of those slow pain insurance claims by some of these inter-companies that are paying in a timely fashion, all side.
And so for the people that are going through this process, maybe they have someone internally who’s doing some of this management or do some of the bills and trying to do the collections, and they’ve got to point where they really can’t collect, when do they start engaging you well, that’s a great question. I’ve got a book of clients of about 500 clinics, and they all are different, we can make recommendations of when we feel that they can most optimize our services, but it ranges anywhere from 60 days to a year old, we like to get the accounts between 90 and 180 days, because that gives the staff the ability to do what they’re being paid to do in trying to collect those accounts, but the problem is, I can’t say they’ve got new business coming in that they’ve gotta take care of, and in most cases, they just don’t have the staff or the resources to handle the influx that they get, so there’s really… Capacity issue in most cases. Yeah, it is, it is, it is. I’ll give you an example. There’s a Dental School that I work with, and when I started with those guys, they had five people in their business office… Just to put it in perspective, two years ago, I don’t know what their numbers were last year, but two years ago, they saw 90 000 patients, when I was met with them, they were just getting overwhelmed, so that was seven years ago, they plugged us in as somebody that could help take the workload off their staff… Yeah, they’ve increased their staff a little bit, but not much, but we’ve been able to collect over million dollars for this one entity just by plugging in a couple of processes and a couple of our services.
And so where do you find that an individual would come to you guys… And we talked about the timing in the process, what time they would come to you, but how did they normally reach you, is it through referral, is it through you guys done some outbound marketing, is that you’ve educated the doctors or like how do people typically find out about your service, ’cause it’s kind of unique in the sense that you have a specific market you’re working with, but there’s also a lot of other companies that do accounts receivable in some of these other types of services or portions of those services… You’re absolutely correct. But I’ll tell you, let me just say this, when I started, as I said 22 years ago, there was over 6000 collection, I… Now, there’s around 4000. the reason I bring that up is a lot of them didn’t become compliant with the new laws, because we are one of the most regulated industries out there, so there’s a lot of compliance things that we have to deal with.
Or security is a big deal when two years ago, we invested 17 million in cyber security, and we used the same facility that Google, Intel and JP Morgan Chase use. So I can tell anybody with confidence when they pass a long sense of information to us, they’re in the best hands in the industry.
So what has happened is you’ve seen a lot of collection agencies go by the way side, but to answer your question is, we do things the old fashion way, we make phone calls, we knock on doors, one of the biggest things that we get recognized by as we integrate with some of the most prominent medical and dental software in the market. So we’re also endorsed by several medical and dental associations because they’ve seen the value that we bring to the marketplace, so they’re very comfortable in referring us to their members.
Gotcha. So yeah, that’s more of a relationship type sale, where the people are coming in, they’re saying, Well, we know you’ve had this. Or you, we know someone else who’s use your service and we’re interested in introducing you to somebody else. Now, when you talk to these doctors, do most them understand what they currently… Why, what they currently have is not enough doctors or healthcare providers, and a lot of them, to be honest, really don’t know what’s going on in the back end, that’s why they hire administrators, that’s what they pay those guys to do.
On the dental side, they’re more in tune to what’s going on on the back end, as well as a front-end, medical doctors, and I’m not saying all of them, but most of them, they’re there to treat patients, that’s why they hire these admins or retain… Aces to run their businesses.
So those are the… Usually the people I meet with now, if we’re dealing with a big organization and there’s gonna be a lot of money exchanging hands… Yeah, we’ll wanna get the principal doctors in the meeting and explain to them what we do and why we do it, and what the costs are involved in all that, and once we explain how our process works, we show them results from practices that would be close to what they’re doing, then they understand that we did bring value, and the other thing is we guarantee our results, well, one of the few companies out there in our space that lets people know when you invest in us, we’re guaranteeing you aren’t gonna losing money, we’re gonna actually double your investment or a greater by doing business with us.
And so compared to these other companies then they’re looking at that and saying, Okay, well, we’re gonna get a pause of ROI, we’re gonna get a… Well, but a company, we’re gonna get a great service, where do you find that most these other companies come short… Other than compliance, I would say customer service.
We touch every state in what we’re licensed the bonding in every state or requires it, we can collect anywhere in the US, we have 18 collection locations throughout the country, we have thousands of employees, we just have a bigger footprint and can provide superior customer service.
I’m not saying other agencies can’t do that, but I’ve run across hundreds of them in my career, and once somebody gives us a shot, they’re usually a client for a long time, I’ve got clients who have been with me my entire tenure that I’ve been with Koreans roll system, which is a blessing because in our industry, people always think grass is greener on the other side, and they’re like, Well, we’ll try somebody else, well, I’ve had that happen, and a year, 18 months later, they call me back and say, Hey, we wanna come back, that one, as good a deal as we thought it was… Well, and that brings up a good point, right?
Not everything is based on price, it’s really based on cost, and I think a lot of people look at it and say, Well, the price of this is cheaper, it’s a… Yeah, but the cost is so much more… You know what I mean? It’s not always about who’s got the cheapest product, it’s God who delivered or services who delivers for what that cost is, and I think what you guys are saying is that you might not be the cheapest individuals, but the cost of what you guys are doing is actually probably one of the best costs… Well, it is… And let’s say we have two different programs. We collect money on a flat fee basis, and we also collected on a contingency basis, which the majority of our competitors do that.
But it’s like I tell people, it doesn’t matter if I came in and told you I was gonna collect your money for 10%… If I didn’t collect any money, it doesn’t make any difference.
So most people are gonna pay somebody 3% to collect 10% of their money, and inter pain, I’m 100% to collect zero their money. So what they really need to look at is what their recovery rate is, how much of my money… If I’m giving you a million dollars to collect and you only collect 100000 of it, and in your charge of a 30%, you gotta look at what your net back is, it’s not much at million dollars, right? And it’s also the time in how fast can you actually do the work, but then it’s also how quality is it… Right, let’s say there’s maybe not an audit, but there’s some other bureaucratic process that people go through, it’s like, Well, what’s your cost then when somebody screws it up, right. You think it’s expensive now? Just wait til you do it wrong.
We provide a lot of ancillary services that a lot of agencies don’t, in all three of our services, we have 2 fixed fee models at first in the third party service, and then we have our traditional contingency… Well, we do address scrubs, we’re tied in directly with the US Postal Service, so if we find a new forwarding address, we’re gonna contact the debtor or the patient at that address, but we’re also gonna send the client a email alert saying, Hey, Dr. Robinson, this patient has a new address, you need to update your practice management software, here’s the new address.
We also do bankruptcy scrubs, we do ask that analysis, there’s a lot of things that we do that we don’t charge for… Okay.
Which we bring a lot of value to the table for what we do, for example, we’re touching these patients, if necessary, five times in each one of our fix services, typically, depending on the volume for the less than 12 bucks an account, you can’t pay somebody in-house to do that, to get on the phone and try to reach these people or sit down, run an aging report and print stuff and male statements for that, you just can’t do it.
Yeah, well, that’s talking about outsourcing to… To some level, it’s like even if you could pay somebody to do it for less than what you guys are doing, you still are your currency that you’re losing is time for your people in your office, if you have a data administrator, it doesn’t matter if you’re making money, you’re not making money on it. If they have no hours and they need 40 hours, it’s a problem.
You know what I mean? To outsource and going, you guys is a much better option because at the end of the day, you can’t run an operation with one person, just not gonna be possible, so they might as well just contract the services and get it out of house.
I’ve got some practices that I work with that have over 100 doctors… Okay, and to your point, they only have eight hours in a day to work account… Okay, so right, let’s just say one individual is able to touch 30 or 40 patients in a day…
Okay, well, one of these particular entities were tied in with their software, we can touch thousands of them in a day at the click of a button, and the cool thing is we generate financial reports every night, so as we generate payment, they reported into their practice management software, which in turn reports it to us, we’re generating accounting and financial reports that erect our finger tags, they never have to cost for reports.
So that’s another added value that we bring to the table that we don’t charge for… We’re letting you know, Okay, you spent this much money with us, you place this many dollars, this is your role, this is your cost to collect, and if you were using an agency that was charging it, we’ll say 30%, this is what you would have paid them versus what you’re paying us.
Yeah, and it really comes down to modeling too, how big is the practice, how small is it, what kind of people they have on staff, what’s their capacity… What’s the patient and all these different factors. But I think what you guys are doing is you have the syndicate partnerships where you have the ability to offer more than one type of service, so that somebody can come to you guys direct and say, I want service X, and you can deliver service acts, you know what I mean, exactly. Yeah, and the great thing about… So I’ll have single doctor Praxis call me up and we’ll get to talk and the like hot, you guys are too big for us, and I’ll say No, we built our business working with practices just like tears.
So the cool thing is we can work with single doctor practices up to… We’ve got healthcare systems that have 2000 plus doctors…
Wow, well, and that’s the diversity of what you guys are doing, right, you’re offering a service that’s really scalable depending on how many doctors are in there or how many staff members they aren’t, and that’s a good opportunity because then you can work with a wide variety of people, that’s exactly right. And the other thing is, the one thing that we stress to our clients, they never lose control of the accounts, they have to press the easy button, so Jose on to determine what accounts they want us to walk for the in, it’s not… We can set up automations where they automatically get… We don’t recommend that we want our clients, the medical or dental facilities to look at those account and make a good business decision whether that debtor should come to us, we don’t want to automatically go on so they have total control of everything that we do.
Right, and so in your experience, ’cause you’ve been doing this a while and you have multiple different services you guys are offering, where should a practice focus be if they don’t have any of these systems in place? Where do you recommend they go first… Well, it all starts at the front, they ask if somebody is a co-pay, they gotta collect it.
The problem is, you’ve got a lot of these practices that aren’t disciplined when patients come in, and then that snowball starts rolling down the hill and gets bigger and bigger because the front desk hadn’t done their job in collecting the copays or doing the billing. I’ve brought on practices that Hansen statements out in six to 12 months, I’m like, How do you intend them getting paid if you aren’t building people?
So there’s a lot of holes out there, not as much as they’re used to me, but they’re still are, and it’s a training thing. If you’ve got a good front office, you don’t have a lot of problems, but your claims are getting filled properly, you’re picking up, your co-pays, bills are going out when they’re supposed to go out, like I tell people in medical facilities, no different in a retail store, you got customers coming in, they consume your services, you need to be paid, and you need to collect that money, right. And on top of that, you need to be conscious of the Mount of time that you’re gonna invest in doing that, right, because if the on-day might be a loss, if you’re spending more money than you’re getting… Exactly, so that’s where that placement rate, I guess, outsourcing would come into place where to say, Listen, you can’t be good at everything you do, we treat patients here and we serve patients here, but what we can do is we can outsource with a partner like yourself to get some of these processes taken care of, so you don’t have to do it… Exactly, yeah, yeah.
I don’t use a dirty word, collection agency, I like to identify us as a financial technology company because we handle a lot of money and we bring technology to the table to streamline and help with the operations of a business or a medical facility.
And in your experience then, once people start working with you, do they tend to request or ask for these other services, is that they kinda come in through some of that collection work and recovering some of the funds that are sitting out there, and then do they go up the chain are working through some of your other professional services… Well, what happens is we go ahead and set them up for all of them. But they choose which one they want to use.
God, there’s no cost for us to send them up, all we do is make recommendations. I might say to you, Dr. Robert says, I might say, Okay, any accounts you have that are 30 to 60 days, you might wanna use our first party accelerator service, where we’re gonna do three reminder letters and two phone calls as your practice, where our name is nowhere associated on these contacts. And what we’ve seen with our practices that do that, or three things, it reduces the billing cycle by 60% because most practices are going a 369-day billing cycle, it speeds the Casa because the contacts are more frequent every seven days as opposed to every 30 days.
And you also identify your problem patients faster, instead of waiting 90 days to do it, you’re gonna find it out within 60 days, and then with the proper recovery, those accounts are gonna be 90 to 180, but we collect money up to a year with that service, that’s where we’re sending the five third party legal collection demands, Okay, our name is on it, and then anything over a year, I recommend six months, but we have a lot of clients that will wait to a year and… And they turn it over to our collections, and the reason I recommend six months, once you have an account that hits a year, you’ve got about a 10% probability of collecting that really? So it goes down that much.
Absolutely, yeah, we’ve got a chart that was… It was actually designed by the Department of Commerce, state Department of Commerce, but when you have an account at reaches six months old, you’ve got about a 30% chance to collect it at that age, to war Labour the age, we don’t care about the dollar mail, we’ll worry about that, the age of the account, if you can wrap your head around get nasty accounts when we recommend, we’re gonna do great for you and have a long-term relationship, right.
Where our services don’t work is two reasons, either people don’t use this when they sign up, or they don’t use this properly.
Got it. So in your experience then, to wrap up this session is, is a lot of pieces in here that I think a lot of the physicians that Listen this podcast are gonna start to understand, what would you recommend that a clinician does, they’re very focused on treating their patients they have a front desk staff and they have some support staff, but they don’t really know where to go, what should they do first, what kind of audit internally should they do before they start shock in the market for something like what you have… Well, the first thing I would recommend is run an agent report and look at their age buckets, derive authority, 30 to 60, 60 to 90, 90, 120, and anything over 120 day.
I just see how much money you got hanging out there, okay, at… Now, what’s gonna happen is they’re gonna see a big balloon in the zero authority because they’re waiting for patents from the insurance companies. Now, let me just throw this out there. We also provide a third party collection service that goes after insurance companies, okay.
For the blue and as the signs and all these ones that are stalling payments, we go after those guys at the collection agency and have tremendous success. My clients over the past 20 years have probably spent about 2 million with me with that service, and we’ve collected in excess of 200 million for… Wow, so it’s great ROI for them, right?
It’s unbelievable. Aron, I can collect insurance money for literally three cents or less on the dollar, we… And that’s amazing. People should be looking at that and saying, Hey, this is how we’re gonna grow it. We’re gonna… It’s not about the service render, it’s not what you build, it’s about how much you actually collect right in at the end the day, you can other be average or you can actually go and collect what you need to collect.
Exactly. I’ve got a hospital for the last 20 years, all I have done for the US collect automobile insurance liability clients, they’ve spent 4000 with The… We’ve collected 18 million for M.Yeah, so that’s a total… When there’s no other way to do that.
So let’s think about this this way, so first of all, how can people reach you, what’s an email, a phone number or website, whatever it is you wanna throw out here, how can people reach out to you who are physicians or maybe they’re in a practice working and they wanna discovery call, they wanna kinda learn a little bit more about how you can help them.
Absolutely, like, my office number is 706-854-0116.My cell phone is seven… Erosion to 6-7-7-5-1-3.My email is Jeff. Jeff R-S A Transworld Systems dot com. And my website is www GTS dot com forward. So yes, or say.
Awesome, well, thank you so much for explaining that and going through the different process, cause I think a lot of doctors are gonna value the process because I think a lot of them rely so heavily on a front desk or a support staff member to be able to manage this, but by them listening to this, so the podcast and having a better understanding of the process, they can be better teachers, educators and facilitators of their business growth.
Yeah, and let me just throw this out there. I’m always willing to help somebody. You don’t have to do business with me for me to help you. I’m all about helping these doctors because they work extremely hard, and unfortunately, the general public thinks they have roots for money and they don’t know how expensive it is to run a practice, and if I can do just one thing to help a doctor… I’m all about that.
Yeah, well, we definitely value that, and I appreciate you taking a half hour to your date day to chat with us in the prospecting show, and I look forward to hearing with the listeners have to say about the upset.
We listen, Dr. Roberts, and I appreciate the opportunity very much. And thank you.
Alright, have a good day.
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