3 Ways to Wow Governments (And Everyone) With Your Tech

In 2010, the framework for massive technology updates in healthcare was set in motion. It started with the introduction of the health insurance marketplace for the public sector. This resulted in hospitals, medical facilities, insurance companies, claims processors and third-party agencies racing to upgrade systems and technology for patient-account management, privacy and data security, compatibility, and simply to keep up with the changing trends. For the agencies servicing healthcare accounts, technology updates and upgrades were necessary to stand out and to survive as a provider of receivables management services.

Now, in 2017 and stepping out of the healthcare vertical, are we about to see another massive technology update impacting third-party agencies? For those in the government space, the answer is probably yes. Without launching a political debate, there is uncertainty surrounding what is taking place and will take place with the federal government as well as with state and local governments. Nonetheless, technology advancement and increasing IT budgets appear to be a priority. A report from Forrester Research published on govtech.com forecasts that IT spending at the state and local levels will overtake IT spending at the federal level as soon as this year and then continuing into 2018.1 More specifically, the report details that the largest investment will be in cloud-based software and solutions.

Technological advances are nothing new but there does appear to be an evolving understanding that a fundamental change is underway. Innovation is essential. Younger generations rely heavily on mobile devices and therefore are always “connected.” The device market is growing and changing rapidly. There is an expectation that technology in other markets is keeping up. Increased IT spending at the state and local levels could help to close this gap.

We can tie this all together by looking back at the question raised – Will any of this impact third-party agencies? Sooner or later it will so the new question is how can agencies prepare? In my opinion, agencies should upgrade their technology so it stands out as if they were attempting to sell their services to government entities. Essentially, make your operation appear cutting edge. “Appear” is the most important word in that statement because nothing needs to change with your collection process. Instead, pretend you are working a state government contract and are in a position to give them the data they need, the reports they are looking for and the analytics they want. Here are three things your agency can do to stand out:

1) Data Centralization

Use a data warehouse, data lake, master data management (MDM) system or whatever you want to name it to gather all the data from all your systems. Most agencies have many database systems in place to run the business. Common cases include collection software, client or debtor access portals, accounting software, outside vendor services and a CRM. These are all standalone systems with their own data sets. By getting as much of the overall data as you can into a central location, you are in a position to report on the entire enterprise and to use the data to really understand how the business is performing. To stand out even further, put your data centralization solution in the cloud.

2) Performance Reporting Package

Develop a package of canned reports about your agency’s performance at the portfolio level that rolls all the way up to the entire organization. There is a good chance you already have a pile of client reports to start with. Having a performance reporting package available shows you are ready to take on more business and you have an understanding of what creditors and first parties want to see from their agencies. If your client does not have hard report layout and formatting requirements, use your package to eliminate a large chunk of the new client onboarding work. You will onboard quicker and will not miss reporting deadlines with your new client.

3) Business Intelligence

An element of this includes report development but with business intelligence (BI), you are adding the bells and whistles. A BI solution can be tough to implement because similar to developing a reporting package, you must know the information that is critical and the data points that are key performance indicators. Only when those elements are understood, a slick set of dashboards and analytictype reports can be developed. To really achieve a noticeable BI solution, an outside provider is almost always necessary. BI is a popular topic these days and there are many good providers in the industry but Tableau offers the best product I have seen. I highly recommend their product and at the very least, it is worth a demo.

An initial push to upgrade your technology and keep up with trends does not have to break the budget or involve a massive overall in how your business operates. It is forecast that government IT spending will be increasing in the coming years and a few updates now could reduce the amount of work that may be required later this year or next. Additionally, the element of change is naturally a challenge and most are comfortable with the way things are but a little change now could ease the pain from a big change coming soon.

1 http://www.govtech.com/civic/Stateand- Local-IT-Spending-to-Outpace-Federal- in-2017-and-2018.html

* This article is also published by Collection Advisor

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Automatic Collections

Nearly ten years ago, I read a book titled “The Automatic Millionaire” by David Bach. It is a lesson on accumulating wealth and achieving financial independence. The subject is not important here. What is important is how it is accomplished because we attempt to apply the same concepts in accounts receivable management and I believe it is particularly imperative when working telecom paper. That theory is “make it automatic.” In the book, the easiest way to achieve financial independence is to make the process automatic through the use of automated payroll deductions, account rebalancing and other such processes. Then, we do not have to do anything or really even think about doing anything. It just happens.

When it comes to timing, of course you do not have 20 to 30 years to collect on any one telecom account but what if we could apply the automatic practice to the collection efforts? What would that look like and how could your technology be the workhorse?

Voice and data providers are always competing to reduce costs and come up with efficient ways to manage customer payments. The service has become commoditized and thus makes it simple for customers to switch providers with little care for any current or past due balances. According to multiple sources, including a white paper published by HCL Technologies, the telecom industry loses in excess of $10 billion annually due to bad debt. That number is much too large to ignore the “make it automatic” concept.

Before automating anything in your software, design a flow that makes sense. It may be helpful to refer to this as a schedule of action. Allow me to explain the automatic setup in your software using the following flow as an example:

Investigation

Setup your system to begin investigative efforts immediately. The new business process should be constructed with logic to identify consumers with missing information. You may discover some accounts are missing too much information for collection attempts. For the rest, make sure the workflow in your software identifies consumers for immediate skip tracing and scoring. Labeling these consumers with a tag or status will make it easy for an automated interface to pick them up for transfer to your skip tracing or scoring service provider.

Dialing and Sending Notices

Like the investigative efforts, the workflow in your software should be able to automatically label consumers for required notices and be scheduled to either print the notices or transfer the requests to your letter vendor. Additionally, whether using a dialer or manually dialing, ensure the dialing pools built by the software are based on your secret sauce (balance, geographic location, credit score and so on).

Reminders

As a consumer, telecom bills are one of the easiest payments to overlook. This remains true for telecom accounts in collections as well. Setting up time-based events as reminders for consumers is imperative. Make sure your software is configured to automatically issue urgent letters, send emails or dial the consumer over the course of attempting to collect on the account.

Disconnect

When calls, notices and reminders are ignored, it is helpful to have a time-based event in your software to commence the disconnect process. This could be a simple pop-up when the account is accessed or an automated message to the service provider to cut the service. If the consumer is already in collections and still has full or partial service, nothing should get their attention like disconnecting the service entirely.

Blacklisting

When all other automated attempts fail, blacklisting is the most aggressive action. Here again, a time-based event should be configured in your software to commence this process. This will eventually require some manual intervention but knowing when to start the process and perhaps some initial actions can be automated. Blacklisting can follow a few different paths. It may involve hot-lining by redirecting all calls from consumers to a special department or in more extreme examples, include barring the consumer for service not only from one provider, but from all providers of similar telecom services.

Applying the “make it automatic” concept to telecom collection efforts may not make you a millionaire but it could certainly ease the effort of working your share of the $10 billion of bad debt every year in the telecom industry.

* This article is also published by Collection Advisor

Managing Unconventional Skip Tracing Data

The common skip trace practice many third-party agencies follow after loading a new placement file is to address skip trace, phone number skip trace, bankruptcy skip trace, deceased skip trace, and credit score. Most collection professionals are well versed on this now monotonous routine. All agencies do it. The difference lies in how the return data is evaluated, captured, and embedded into the daily workflow for managing the inventory. However, there are some other, unconventional skip tracing services and often, they will provide some very revealing information. This information may be just enough to separate you from the competition. I would like to detail three unconventional skip tracing services and more importantly, ideas for how to manage them in your receivables management software.

Possible Incarceration

You may eventually discover a consumer is incarcerated over the course of working the account but have you considered running a skip trace for incarceration before any effort goes into contacting the consumer or sending a letter? Executing this skip trace and identifying a consumer is incarcerated will allow your representatives to focus on accounts that are more collectible. The possible incarceration skip trace should be scheduled one of two ways. First, the request can be automated to run with your normal skip trace service requests (address, phone, bankruptcy, deceased, credit score). Alternatively, you have your regularly scheduled requests run first and then based on those results, segment the ideal consumers for a possible incarceration skip trace. For example, if you receive a return that a consumer is deceased or has a credit score less than 400, your automated workflow may be set up to automatically close the account. In those cases, your skip tracing automation should bypass that consumer altogether for the possible incarceration scrub.

When receiving a hit for incarceration, some decisions need to be made. Most often, a release date (if applicable) is provided with the incarceration hit. Depending on the duration of the incarceration, you may option to close the account and re-open it immediately after the release date. On the other hand, you may just want to close the account and archive it. Either way, let your system handle it with built-in automation.

Possible Litigious Debtor

The litigious debtor skip trace could save thousands of dollars in legal costs. This may be one of the most fascinating services available these days. A returned hit on this service may indicate you are facing a consumer who has filed one or several lawsuits against agencies. It exists because consumer lawsuits against agencies and first parties are on the rise. Furthermore, consumer initiated lawsuits are steadily increasing because more and more consumers are becoming well educated on the FDCPA and other federal or state regulation.

Unlike the possible incarceration skip trace, you may want to set up workflow to run the possible litigious debtor skip trace right away. If a hit is returned, most agencies establish rules in the software to immediately flag and close the account in an effort to eliminate any contact whatsoever. When going this route, utilize workflow or other automation to close the account, remove it from any dialing queues, stop any other skip tracing efforts, halt all contact attempts, and flag the consumer so it is understood to steer clear of this account.

Property

This skip tracing service is a fun one and can arm your representatives with some very valuable information prior to contacting the consumer. The property skip trace will inform you if the consumer has recently purchased, leased, or somehow acquired new property. A house, condo, and land are all property examples. This information is especially valuable when a representative is working a consumer who indicates they are on a tight budget or simply does not have the financial resources to repay the debt.

As for automating this service, it is best to send the request after your first blast of skip tracing. You will want to carefully segment and select the consumers you want for the property skip trace. Construct the workflow to select consumers with a valid phone number and address, populated with full SSN, an outstanding balance that justifies the property skip trace, and a moderate to high credit score. Unlike possible incarceration and litigious debtor, turning on monitoring is a great idea for this service. This will allow your skip trace provider to continuously seek property hits for the consumer, rather than a one-time scrub, and notify you when a new hit becomes available. With this information, a representative can easily counter an excuse-ridden consumer by simply questioning his financial position since he has recently purchased a new property.

Before jumping right into unconventional skip tracing, you must first develop guidelines for isolating and marking the consumers for these different services, for identifying them when hits are received, and for the special handling they require. Regardless of the decisions for implementing unconventional skip tracing or managing the returns, store the data in your software or data warehouse and make the process automated in your software by including it in your everyday workflow.

* This article is also published by Collection Advisor

Increase Telecom Recoveries with Robust Scoring Models

When handling telecom accounts, agencies need to have a distinct approach to be successful in their recovery attempts. Customer delinquency is on the rise in the telecom market. Higher subscriber prices, providers combining services, the competitive nature of the players in the market, and third-party involvement is to blame for the growing number of delinquent subscribers and rising write-off amounts. News like this should be welcoming to agencies servicing telecom accounts, but with it comes increased pressure on the agencies to recover.

It is a mistake to think of telecom accounts just like every other account. It is an even greater mistake to treat telecom consumers as you would treat bank card, student loan, or medical consumers who have delinquent accounts. Take a minute and think about yourself as a consumer in the telecom market. This should be easy as you likely have some combination of telephone, cable, satellite, or streaming service accounts in your name. As a consumer in the market, do you understand what you signed up for, how much you owe, and in what respect the money is applied when you make a payment? Generally, consumers in the telecom market cannot answer these questions and furthermore, cannot explain the contract they signed or if they even signed a contract. We see this phenomenon in the telecom industry because it has been commoditized to the extent where it is too easy for consumers to switch suppliers. When a consumer switches, he/ she usually either does not know or does not care he/she owes money. The point is the industry is different so how an agency utilizes systems and technology to collect needs to be different.

Closer management is essential. Creating and implementing finely segmented profiles using strong scoring models is one way to manage telecom accounts in your collection software. First and foremost, identify the data elements that should factor into generating your recovery score and how each may positively or negatively impact the score. The list below includes some data elements and considerations when generating a recovery score for your telecom accounts.

Credit Score

In most cases this is undoubtedly the top data element to include when generating a custom recovery score. It should weigh heavily in determining the collectability of an account. The workflows or queue logic in your software should stage consumers with the higher credit scores to receive the most attention. Likewise, you may set up your workflow to all but close out accounts with a credit score in the 300 or 400 range.

Quantity and Quality of Data

It is important to know how much data you have per account and the quality of the data. Generating a custom recovery score with not enough and or unqualified data may hurt your recovery attempt more than helps it. Ideally, you already have the data captured in your software. If not, most data should be included in the placement file from the service provider or can be obtained by interfacing with data scrub service providers like LexisNexis, MicroBilt, or any of the major credit bureaus. At a minimum, make sure you are receiving and storing data points like full name, social security number, full and verified address, and verified phone.

Number of Delinquent Accounts

Any consumer with multiple delinquent accounts in your system should receive a lower score. It is an indication the consumer is hopping suppliers when better deals or introductory offers are available.

Geographic Location

Some may question the significance of this data element but in remote or lesspopulated areas of the country, consumers do not have many options for telecom service. They may even be limited to a single supplier for Internet, cable, and/or telephone service. In these cases, a higher recovery score is reasonable as the consumer must satisfy the debt in order to resume service or to receive new services from the supplier.

Type of Residence

You may consider increasing the recovery score if the consumer owns versus rents or shares a residence. In just about all cases, the telecom accounts for a homeowner are in his/her name. When working with consumers in an apartment, condo, or other renting situation, the telecom services and responsibilities may be split among many of the residents, making it somewhat easier to neglect their portion of the service.

After identifying and detailing the data elements important for generating your custom recovery score, they must be built into your software for automatic and fluent management. Some recovery software platforms include modules to set up custom scoring but none I have encountered are very impressive. More flexibility and options are likely available outside of the software. In most cases, custom scripting will be required to consume the data and make systematic scoring decisions. If you have strong programmers on staff, their skills will certainly be required to configure your scoring model. This can be handled strictly with scripting a solution that will integrate with your recovery software or externally in a data warehouse or “black box.” The terms data warehouse and black box are interchangeable on this topic. It is a place external to the recovery software where data from your recovery software, accounting software, web portal, CRM, or any of other in-house system is captured.

Custom scripting can be applied here as well and may be a better option than against the recovery software database because you may have more data elements to work with in the data warehouse. Regardless of the database(s) utilized, it is imperative to apply the recovery score logic uniformly and against all consumers in the system. One mistake agencies make when implementing new logic is only applying it on a go-forward basis. Circle back on all the existing telecom consumers in your system and run them through your new custom scoring logic as well. Allow the system to make decisions and commit to allowing your scoring to drive collection efforts.

* This article is also published by Collection Advisor

Synchronizing Collection Software with Hospital Data

As a server of medical accounts, agencies often find themselves facing some additional technology concerns. Every vertical brings its own technological challenges. In most verticals these challenges are shared but the healthcare vertical adds complexity when considering items such as system of record and the detailed nature of industry accepted data standards.

Medical collection software exists for any serious agency in the healthcare space. However, I see and hear agencies are simultaneously working in two different systems, their own collection software and the hospital’s system. (Throughout this column, I will repeatedly reference the “hospital’s system” but the terms “medical facility’s system,” “insurance company’s system,” “claims management system,” and so on could easily take its place.) The questions I will address in this column are: Why are there disparate systems and how can these agencies work out of one system? Most often the “why” is one of three scenarios. One, the hospital requires the agency to work directly in their system. Two, the agency software does not have the same data points as the hospital’s system. Three, there is no seamless integration between the two systems so real-time updates are not sent back and forth between the two pieces of software. In any case, system of record becomes a question. When working in two separate systems, which one wins when there is a conflict? No wrong answer to this question exists and the better question to answer is how can the conflicts be avoided? Unless you have a compelling case, the hospital will insist your reps work directly in their system and will not be convinced your receivables management software is sufficient enough to allow otherwise. You can utilize your technology to build this compelling case by addressing the integration scenario previously presented.

Before detailing a seamless integration between systems, there are a few prerequisites. Ideally, the following statements are all true:

  • Both the agency and the client have technical teams available to implement and test the integration.
  • There are application programming interfaces or web services available for both the source and target systems.
  • The source and the target system include functionality to track data changes and events that occur as users are working.

Consider your collection software as the source. This is the system you are familiar with and the system you prefer to work with. A data push can be developed using system inherent data integration tools or an external data integration tool with connectors to the system database. This push process will need to be constructed in a manner that captures the data level events as they occur and will need to be shared with the hospital’s system. Simultaneously, a pull or retrieve process will need to be in place for the hospital. This process will grab the real-time data events being provided by the agency’s system. After some analytic, transformation, or validation routines are performed, the data from the agency’s system will ideally auto-update in the hospital’s system. Additionally, reverse processes will need to be engineered for the hospital to automatically share real-time data events with the agency’s system. Achieving this sort of real-time integration will allow your representatives to work exclusively in your system while keeping the hospital’s system in sync and vice versa.

Prior to engineering the solution described above, there will need to be a requirements gathering session with your client to identify the data elements that are important to share and are able to be shared between the two systems. A significant takeaway from these sessions needs to be a requirements document. At a minimum, the following should be detailed in this documentation:

  • A very detailed listing of the data fields to exchange.
  • Any business rules related to data transformations, data validations, and data extract/load procedures.
  • Instructions for using any web service technology.

Utilizing existing data standards is almost essential in the healthcare space. These standards are also helpful in achieving real-time system integration. Your agency is likely already using data standards like Health Level Seven (HL7), HIPAA formats, or something EDI related in order to exchange data with clients. Transaction and code standards like these provide a uniform method for sending and receiving healthcare related data in near real-time. It is important to understand these standards not only because your clients will expect it but also because it displays a higher level of sophistication regarding your operation. The client’s only expectation is you are staying up to date with the ever-changing healthcare standards. The October 1, 2015 countdown to ICD-10 (10th revision of the International Statistical Classification of Diseases and Related Health Problems – Clinical Modification/Procedure Coding System) is on the horizon. Are you ready?

* This article is also published by Collection Advisor

Launching Your Data Warehouse for Skip Tracing

The production data you receive can be simply classified into two categories. It is good data or it is bad data. We refer to the bad data as “garbage data” because it breaks your automated processes, will not load into your software, and in most cases requires some agonizing manual intervention. However, it is important to intelligently collect all skip tracing data and build automated processes for managing it. Technology solutions should be in place to manage your skip tracing data and to avoid your agency being buried in a landfill of skip tracing data.

Although, most collection software includes some sort of inherent module, feature, or perhaps even integrations for interfacing with skip trace service providers, a data warehouse should be implemented as a paired solution for housing and evaluating your skip tracing data. Your agency may already have a data warehouse that can be enhanced to include skip tracing data. Here are some considerations when launching or enhancing a data warehouse for your skip tracing data.

Basic Considerations

The basic, or not-that-exciting, considerations include:
1) Location – You need a server. If your security, compliance, and client requirements do not force you to host the data in-house, I recommend outsourcing to a hosting company. Most hosting companies can dedicate a physical server in a secure environment or implement a virtual environment with the same levels of safety and security.

2) System Sizing – Aside from the other data structures in your warehouse, how much disk space or how much processing power will you need to account for your skip tracing data? The disk space should be enough to house the production data from all systems feeding the data warehouse and from all the ancillary sources, such as your skip trace vendors. Regarding performance, there should be enough muscle to execute all jobs, rules, and interfaces in enough time to not interfere with any regu lar backups. If utilizing a hosting company, they can help you figure this out.

3) Software and Licensing – For most agencies, Microsoft Windows Server and Microsoft SQL Server will do the job. You may require .NET framework, Java, or special drivers based on your preferred technology for interfacing with the data warehouse. This is another area your hosting company can assist with.

Complex Considerations

The complex, and more stimulating, considerations include:
1) Data Structure – All skip tracing data should be captured and stored in your data warehouse even if it is not utilized today. After all, you are paying for it. It is safer to have the data and not need it than to need the data and not have it readily available. Try to construct an intuitive data structure. This will make future build out and scalability much easier.

2) Business Rules – There are many considerations on this topic but let’s focus on the skip tracing data your agency deems important. If you do not have documented business rules stating which pieces of returned data are imperative and how that data is used, you should. Let’s look at a simple business rule example. Most agencies run a skip for phone and address. Of course this information is imperative but how are you handling this returned data? Is it accepted as the best and always overwrites the primary phone and address in your system? Are you running a process to validate the returned phone and address prior to overwriting data in your system? Are you handling the returned data differently based on the source? These are some of the questions your documented business rules should answer. Finally, program these rules into your data warehouse so the process is fully automated.

3) Data Analytics – Many agencies overlook the importance of data analytics and thus lack the understanding of data trends. If you are going through the process of implementing or enhancing your data warehouse to include skip tracing data, you should absolutely run systemic analysis to understand your skip tracing data. This is more than identifying which skip tracing data points are important. Rather, it will show you what the data means. With proper build out, you will understand where you are getting the best skip trace results, what is not working within your business rules, and will likely identify cost saving opportunities.

* This article is also published by Collection Advisor