The Debt Collection Company

This article provides a short overview of the state of the debt collection business. Why so much interest to doctors as well as medical billing along with collection practices? Because one of the main reasons this business is thriving is because of the medical debt incurred by consumers nowadays.
Medical Debt and also Bankruptcies

According to: Health care Bankruptcy in the United States, 07: Results of a Countrywide Study, by Jesse U. Himmelstein, et. al., American Journal of Medicine, 2009:
• 62.1% of all bankruptcies are related to a new medical issue.
• Bankruptcy that could be attributed to health concerns increased by 50% among 2001 and 07.
• 75% of medical customers had health insurance.

There exists opportunity for savvy doctor practices and health care billing firms to collect what is owed all of them.

Booming debt related website
The Bureau of Labor Statistics (BLS) predicts any debt collection industry expansion of 23% between now and 2016. Leading the way for these providers will be doctor's offices and also hospitals.
New technology is making it lucrative for even small scale entrepreneurs to get into the debt assortment industry, increasing the amount of companies in the business. Wise Money magazine accounts that debt collection agencies have recovered almost $40 billion in debt or regarding $133 for every person in the US. In fact, in 2005, All of us businesses forwarded $141 billion in delinquent personal debt to collection. The companies collected $51 billion of this debt keeping money of about 25%.
To show what kind of money can be made from collecting consumer debts, think about this example. The Birkenstock boston Globe reported a Virginia based company, Portfolio Recovery Acquaintances (PRA), bought debt well worth $16.4 million inside face value. The company paid $415.4 zillion for that debt which usually came out to about Only two.5 cents about the dollar. PRA collected an average of 7.5 cents per debt dollar eventually posting a profit of $36.8 million in 2005.
For that reason profit potential, small mom and pop business are finding it more inclined that a collection agency will help them. Municipalities are also using collection agencies to help collect past due parking tickets and library fines.

For more information about directory of agencies visit our website.