There are multiple ways to track down a skip. The method used hinges on the context of the skip tracing. In the case of an agency, millions of accounts pass through the digital door every year and many are a little iffy on the location of the consumer. Locating all of these consumers in the most streamlined method possible is the key to quick turnaround and maximized returns. To take a closer look at how today’s agencies are operating in this environment Collection Advisor shines the Agency Spotlight on Healthcare Financial Services and its president, Dick Williams. Williams reveals how HFS’ skip tracing process has evolved and what they have done to ensure a sound ROI.
How did HFS come to be and describe its history with skip tracing?
HFS started 23 years ago as a collection department of our parent hospital. Once we became a stand-alone collection agency for many clients we developed skip tracing processes. Over the years this included near-by books, reverse telephone directories and even individual phone books for every market we served. We evolved to computer process and Google, Yellow Pages, White Pages, etc., to replace the library of paper directories.
What kind of collections does HFS do and describe the part skip tracing plays in the process?
HFS is 90% medical collections with some student paper, government, and utilities accounts. Skip tracing is important as we have several markets. We have developed internal databases to locate debtors but serving several states dictated we develop a more useable process for access by every collector.
What is HFS’ philosophy when it comes to establishing and maintaining relationships related to skip tracing (vendor relations, informants)?
Today we partner with excellent vendors who can automatically integrate into our database and provide quality information just a click away for our collectors. To that end we are an Ontario Systems user and capture credit bureau data with 21 individual attributes. We also capture business intelligence data for scoring along with scrubbing for cell phones, known litigators, probates, bankruptcies, and deceased debtors. We believe the front end loading of data speeds the quality and quantity of collections and reduces the need to perform after placement skip tracing. We also allow our representatives to use on line tools through TLO if necessary when front loaded data is not enough to reach a collection decision. We do not allow or expect our collectors to be on social media both from a production point of view and associated risks involved.
How have the CFPB and recent increases in regulation changed the way HFS finds consumers?
Yes, in several ways the CFPB, and recent court cases have made us much more restrictive in our efforts. Thus calling of relatives and or near-by contacts is almost nonexistent. HFS is running two dialers and very little of our calls go out over the auto dialing platform so most are generated by our representatives. Thus most of our work is very specifically directed to our vendor and client data as opposed to the old blanket calling campaigns of days past. What is HFS’ most valued technology in the recovery/skip tracing process? We are very happy about our business intelligence information coming from EBureau and Intellitech. This has enabled us to experience quality growth in collections. We can focus on cost effective treatments of accounts. Thereby we improve client collections and provide clients with additional data about charity and recovery potential.
What is an often overlooked but extremely important skip tracing/batch processing technique?
I see two specific issues in dealing with skip tracing vendors and batches. The primary issue is the file out and recovery of the same must be in the background and automated. The second issue is results must be captured inside the individual account file and not require it to be gathered as a report and then transcribed onto the debtors account. Of course understanding the results, tracking the success of those results over time and costs is essential.
Describe a particular challenge regarding skip tracing/ batch processing. How did you overcome it?
We have tested numerous skip trace providers and asset search companies and as stated before, integration is critical. We rely on our business partner, Ontario, to be sure the chosen vendor can be linked into their system and to us. We refuse to partner with vendors not able to work in that platform as it has failed numerous times over the last several years.
What is one of the worst skip tracing-related mistakes an agency can make and how can it be avoided?
Our experience has been to get much data back from the vendor and feel it is a great partner. But over time the quality of the data and or cost per hit can become prohibitive. We monitor the quality of performance and the cost versus return over at least six months before making any decisions on contracts and long-term relationships.
How is HFS involved in the community?
HFS like many of our fellow ACA members participates in several community-based events. Being closely tied to the medical providers we do cancer, heart, and diabetes walks. We also sponsor golf outings for our city government, along with fund raising for kids’ summer camps. Likewise for years we have been participants in Operation Christmas Child. In addition we do training and speaking to Healthcare Financial Management Association, Medical Group Management Association, and CPA-type groups to increase understanding and awareness of our industry.
What is one tip you would give agencies regarding collections/skip tracing in the current CFPB and regulation-rich environment?
I believe we all need to keep current on the laws, court cases, and rulings to keep inside the lines and not risk ever making a bad decision or breaking the law. We need to resist the temptation to cut corners or allow our staff to stray from proper and compliant handling on every account.
What do you like to do in your free time?
Since we sponsor some golf outings I try my best to play golf but have never been accused of being a good golfer. I did win $5,000 in a putting contest so I guess that was the highlight of my golf. I enjoy movies with my bride of 26 years and travel when our schedules permit.