Which would a practice review or consider when deciding on a collection agency?

• A. Good collection agencies can clearly explain their procedures.
• B. The practice can see if the agency actively pursues payment.
• C. Some agencies only use letters and do not pursue further follow-up.
• D. The agency offers a discount on its fees.

Answer: (B)

The most important factor is whether the agency actively pursues payment, not just describes how they work. A practice review should look for evidence of persistent, multi-channel collection efforts—timely phone calls, letters, emails, and documented follow-up steps—because sustained contact is what converts outstanding balances into payments and improves cash flow. This shows the agency is not relying on passive notice but is actively trying to collect, within regulatory guidelines.

Understanding procedures is helpful, but it doesn’t guarantee results. An agency that only sends letters and stops, or that has weak follow-up, is unlikely to achieve solid collections. Price or discounting on fees can matter, but it shouldn’t come at the expense of aggressive, compliant collection activity.