Closing the Books by IC System

Utility companies, like many businesses, were impacted by the COVID-19 pandemic. With people struggling to pay their bills, that left utilities with growing accounts receivables. Karen Jonas, Senior Vice President of Business Development at IC System, and Eric Port, Recovery Manager at DebtNext, provided some insights on the matter and some welcome news for utilities struggling with mounting AR balances.“What we see is a lot more utilities are starting to regain focus on their write-off collections again,” Port said. With the pandemic beginning to subside, there is a renewed effort on recoveries and a shift in the type of recoveries utilizing digital methods, such as email and text.

Debt collection rarely, if ever, has a positive connotation. Joe Erickson, Director of HR at IC System, spoke with Eric Johannes, Director of Corporate Marketing at IC System, about how this relates to the significance of creating positive culture in this sector. Erickson has worked for IC System, a family business founded by his grandmother, for 22 years. He sees the main benefit of working for a private-owned company as being able to say when something is wrong and act with integrity, even when difficult. “Our core values are something that we’ve stuck by, and we have held to even when it is inconvenient,” he stated. “Being a private-owned company, we’re able to be more flexible, we’re able to do what’s right for our clients maybe more and were able to do what’s right for our employees maybe more.” Because collections has a negative connotation, it’s crucial for IC System to spread the message that they are trying to do good. “We’re really trying to be the good guy and be an extension of our clients and treat people the way we’d want to be treated out there,” Erickson explained. This involves finding the right people to do the job and being a good steward of clients, the community, and employees. IC System creates a culture of buy-in where employees believe in their vision. “If you have people that are not living your core values, it can spoil the water and it can make it bad for everybody else. And I think that we protect that, we protect our core values, and we really don’t make our people work with people that don’t align with us,” Erickson said. To learn more about IC System and how they instill positive culture, subscribe to Closing the Books on Spotify OR Apple iTunes. IC System has over 85 years of experience in medical and dental debt collection, rent recovery and other business collections. For more information, visit https://www.icsystem.com/.

Tax time for collections agencies is a time when conversions and recovery increase. This window of time when debtors may have additional funds is prime time for collection success. Discussing why this is and offering more insights, Bryan Campbell, Business Development Manager at IC Systems, joined Closing the Books host Tyler Kern.  “From an activity standpoint, it’s a seasonal lift. Inbound volumes are up over 10%, conversion rates by 7%, and payment size by 20%,” Campbell shared.  Campbell attributed this rise in recovery to consumers wanting to meet their obligations. “There’s a psychology to it. People get a refund and have the means to pay. Very rarely do consumers not want to at all. It’s just they don’t have the ability to do so.” “If they are exploring it or unhappy with previous results, it’s time to get into it. The first refunds hit around early February, and you want to be ready to benefit when the money is there.”  Campbell also advised that turning accounts over to collection should happen after 90 days. From there, collectors can begin collecting on the account in about 35 days after the debt validation notice and the time consumers have to dispute it. “Most debts are collected within the first 90 days of delinquency. It decreases after that. If you wait longer, the value decreases. It’s much lower after 120 days.” With strategies in place and the ability to negotiate settlements, many businesses can see Accounts receivable (AR) recovery increase during tax time and all the months of the year.  IC System has over 85 years of experience in medical and dental debt collection, rent recovery and other business collections.

“There’s a lot of science behind it,” Selbitschka said. “We’re looking at the portfolio as a whole. So, as the accounts come in, we’re looking at average balance, we’re looking at where the consumer is located, how long the consumer had the services. Were they a continuous payer, where they a one and done? There’s all that information that goes on behind-the-scenes we look at before we make a phone call.” Utilizing data during this phase provides accurate information upfront and ensures a better return on collections. Selbitschka said IC System utilizes a data vendor who channels up to eighteen pieces of different information to create a score. This score generates a 5-tier model for IC System’s dialer team to assign penetration rates. “One of the neatest things about our model is it’s very interactive during the first thirty days,” Selbitschka said. The model factors all of IC System’s communications, contacts, payment arrangements, unsolicited payments, wrong addresses, bad phone numbers, refusal to pay, and consumer interactions, and fluctuates accounts up and down the various tiers. This approach provides- real-time data for the dialers, and it is a competitive advantage over a collection agency using a static credit score to make call decisions. It’s critical that scoring isn’t a one-way street. IC System generates a score from the consumer as well. That data allows IC System to make continual process improvements and provide consumer satisfaction results to clients.

On this episode of Closing the books, a podcast by I.C. System, Host, Eric Johannes, sat down with Kay Drinkwitz, a Lead at IC System. The two discussed Drinkwitz’s 27-year journey at I.C. system, from her early days as a college student to her work today as a mentor for other collectors, as well as how the task of debt collecting has evolved throughout her years at I.C. System. Drinkwitz was only 18 when she got referred by her supervisor to start at I.C. System. She recalls her first years working in debt collection being intimidating, especially when comparing herself to some of the more experienced collectors. “I was very soft on the phone,” Drinkwitz explains, “I think it helped me develop a lot of my self-confidence over the years. I’ve grown with the job for sure.”After graduating college with a degree in Elementary Education and a minor in Mathematics, Drinkwitz found that her job at I.C. system ultimately worked best with the life changes she was experiencing at the time. Now, 27 years later what started as a part-time job in college has turned into many years of experience and fostered relationships.“I definitely could not work for a company that was not in line with my own values,” Drinkwitz explains. “We really try to put people first and that's important to me. The approach that we have always taken is to try to help people and try to do the right thing.”The two go on to discuss the evolution of debt collecting at I.C. system, such as changes in terminology like “consumer” instead of “debtor”, as well as dealing with the negative connotations associated with debt collecting and navigating through difficult conversations with consumers.For more information, visit https://www.icsystem.com/.

With 50 states and seemingly a different set of rules for each, keeping up with the regulatory changes in the collections industry can be tricky. But Michelle Dove, Corporate Counsel & Chief Compliance Officer at IC System, said it’s all in a day’s work. She joined host Tyler Kern to shed some light on the latest industry regulations and provide some best practices for keeping on top of the changes.Dove’s primary job with IC System is to manage litigation. Still, she also spends a fair amount of time reviewing policies and procedures to ensure everything follows the ever-changing laws and regulations.“There are some federal laws that are overarching and govern everything we do,” Dove noted. “The FDCPA, in essence, tells debt collectors that you have to treat consumers fairly. The FCRA governs how we report debts if our clients elect a credit reports’ accounts. The FCRA tells us how to do it right. The TCPA governs how we call consumers and mostly dictates how and when we can call cell phones.” And there are many other privacy-related laws debt collectors must follow.The more states that create their own regulatory operations and laws, the trickier compliance is for companies like IC System. It can get exhausting, but overall, Dove said it’s a good thing.“I think for a long time in our industry, we collected debts a little bit unknowing of what the requirements or expectations were, and we usually found out when we got it wrong,” Dove said. “The good news, with all of this regulation, is it tells you how to collect debts the right way, and so ensuring compliance then is the next step.”For more information, visit https://www.icsystem.com/.

On this episode of Closing The Books, a podcast by IC System, Host Tyler Kern talked with Mary Prendergast, Vice President of Business Development at IC System, and Gary Meza, CEO, and Owner of GTM Medical Consulting, whose mission is to become the leading business advisor for physicians in the Mid-Atlantic by helping its clients achieve best practices both financially and operationally. The trio talked about how a business adviser can improve your healthcare organization’s revenue challenges. Meza and GTM Consulting help practices that are struggling. Having worked with over 100 practices from numerous backgrounds, he helps them by restructuring them and making them more financially sound. One of the main issues he sees is billing efficacy, which in turn becomes a cash flow issue. “To flesh this out I ask physicians if I can review their accounts receivable and monthly billing report,” Meza said. “Very seldom do they review these on a regular basis. They just want to practice medicine.” The business of healthcare has changed over the last ten years, however, with practices now forced to enlist a business consultant or business manager. Meza has been a long-time partner of IC System, introducing clients that need help with self-pay solutions. The pandemic, however, has brought a fresh round of challenges to the industry. Listen to hear more about these challenges and how a business adviser can help improve a healthcare organization. For more information, visit https://www.icsystem.com/.

Class was in session on Closing the Books as Tyler Kern got a crash course in the secrets behind writing an accurate collections RFP to capture vendors’ attention and deliver the results businesses desire. IC System Proposal Manager Mark Pollard provided insights into what vendors like IC System look for in a well-written RFP that helps them communicate how their solutions will make a perfect fit for a prospect’s business.There are many standards and requirements in an RFP that won’t change over time, but Pollard said he’d seen his fair share of RFPs that had not changed in 20 years. With technology changing and many other aspects of a business rapidly evolving, Pollard recommended companies regularly review and update their RFP process and documents.A key consideration Pollard said that some businesses don’t give full attention to during a collections RFP is their debt portfolio. “Know that the details of your debt portfolio are yours,” Pollard said. “The hesitancy I see with some buyers is they’ve been working with a collections vendor for a number of years. That collections vendor has accomplished a certain amount of success and returned a certain amount of dollars to them. When when you ask them about that success, and what has your incumbent provider accomplished over the last, say, four years, they say they don’t feel right about sharing that; it’s kind of maybe proprietary to the incumbent provider.” This information is the buyer’s information, and they are within their rights to share it in an RFP.For more information, visit https://www.icsystem.com/.

The Better Business Bureau (BBB) has long been an organization that seeks to build trust between businesses and consumers. Most people are familiar with their grading, which is the result of customer reviews.They also have the Torch Awards for Ethics, and IC System is a 2021 winner. Discussing the award and what it means, Closing the Books host Tyler Kern spoke with IC System President and CEO John Erickson and Lisa Jemtrud, VP of Community Relations for BBB Minnesota.Jemtrud explained the basics of the award. “Its purpose is to lift up those businesses showcasing ethics, and it’s been held annually since 2000.”Next, Jemtrud discussed eligibility. “You don’t have to be accredited with the BBB but must have a letter grade of B or better. The company must be in the service area of Minnesota or North Dakota and be in a good financial position. Additionally, the business can’t have a record of complaints or government actions.”Beyond those specifications, the determination of a winner focuses on four main aspects: how a company treats its customers, vendors and employees, as well as what they are doing for the community. An independent panel of judges from various industries also looks at the application and how it describes how the company executes ethics daily.John noted that IC System has long appreciated its affiliation with the BBB and its A+ rating. “We’ve been applying since 2010 and had been runner up before winning this year. The award embodies everything we’re trying to do at IC.”IC System was so committed to this they even put it in their strategic plan. “It lines up with our core values, and it was a part of our strategy. We view it as a great accomplishment.”For more information, visit https://www.icsystem.com/.

Debt collection is a challenging aspect of healthcare operations. With a variety of organizations, account recovery isn’t one-size-fits-all, nor is it usually manageable with limited resources. For more information, visit https://www.icsystem.com/.

What does patient advocacy look like in 2021, and how has COVID-19 impacted the healthcare system from the patient to the provider and collection agencies? Kristina Gursky, Director of Healthcare Client Success at IC System, and Kenny Koerner, Director of Revenue Cycle at CGH Medical Center, helped host Tyler Kern break down this important and timely topic.

The world of debt tends to creep up on many businesses. One moment it’s a small purchase on a credit card, the next it’s thousands of dollars with high monthly payments and high interest. Sometimes with this debt, businesses even fall into missing payments and become delinquent. This is where debt collecting agencies come into play. In working with the thousands of clients in the IC Systems’ portfolio, Bryan spoke about some of the information that small businesses should have handy when going to a debt collection agency. The more pieces of information the better as the process of collecting debts can be time-consuming with a lot of details. He said that businesses should have there, "Basic demographic, information like your first and last name, and the consumer or patient, address, primary phone number, a balance that's owed, and then separating that from a principle to other fees like interest as well.” Debt collection agencies can take on a lot of different types of debts with a varied amount of circumstances. They look to expand on their partnerships with whoever they’re going into business with. But as Bryan explained, there are instances where agencies can’t or won’t take on the debt that people should know about. He said that “any bankruptcies, we would not look into. If I a debt can’t be validated or it might be disputed, we can’t accept that. Anything that that hasn’t been notified from a past due status.” Debt collection agencies continue to be a go-to source for those who find themselves drowning in debt whether it be an individual or business. One thing to remember as Bryan added was that time is always of the essence with debt. “The longer you wait, it just is more difficult” IC System has over 85 years of experience in medical and dental debt collection, rent recovery and other business collections. For more information, visit https://www.icsystem.com/.

Mike Selbitschka joined IC System fresh out of high school. Now IC System’s Vice President of Operations, Selbitschka knows a thing or two about the collections industry. And the best tool he knows for measuring success is the scorecard.

Finding a perfect match can be difficult, but sometimes things just click. That’s the case with IC System and Genomind. Genomind, a company utilizing genetics as a data point in diagnosing mental health challenges, wanted a recovery agency that, instead of aggressively going after those who hadn’t yet paid for the services provided, would take a tactful approach.For more information, visit https://www.icsystem.com/.

Business leaders in B2C industries are quite familiar with post-call customer satisfaction surveys. After all, they’re one of the most effective and practical ways to measure consumer sentiment.However, the debt collections market is one industry that hasn’t implemented this aspect of consumer experience – until recently.Tim Scholl is IC System’s Call Center Support Supervisor, as well as the one who built the company’s Consumer Satisfaction Survey (CSAT) in 2017. Podcast host Tyler Kern tapped Scholl’s expertise in this area to find out what benefits and insights this system has provided since then.Although customer satisfaction surveys are standard for most consumer-facing businesses, this was not the case for the debt collection industry. In fact, when IC System first launched their post-call survey initiative, it was the only collections agency doing this.But, since September 2018, Scholl’s CSAT system has garnered over 450,000 responses from consumers, and the information they gained from those responses was enlightening.“We see a big jump in conversion rate and payment size when people say that they are treated professionally, so we’re ecstatic about the results that we’re seeing,” Scholl said.Although the call center support team has their own internal scoring system for measuring employee results, “that doesn’t necessarily reflect the consumer experience.”These surveys allow Scholl and the leadership team to assess how consumers feel about their call experience without having to have a potentially difficult conversation.“We treat them the best that we can, which then reflects back on us, which then reflects on who that original creditor might have been,” Scholl noted.Subscribe to the Closing the Books podcast today to get the latest news and insights on the debt collections industry.

John Erickson, President and CEO of IC System, believes there’s a compassionate way to approach the collection agency business. That model leads to higher recoveries and positive outcomes for clients. A lot in the industry has changed in Erickson's 20-year involvement with collections. Increased regulations, and a re-thinking of the approach, helped reduce some of the more aggressive tactics used in the collections’ process. “How we treat people is one of our core values at IC System,” Erickson said. “How we handle all of the people we speak with on the phone - we must treat them with dignity and respect.” Empathy training is something Erickson’s employees receive. This type of training helps provide a better understanding of what a consumer might be going through financially. Another differentiator Erickson believes makes a big difference in IC System's success is conducting post-call surveys. “As far as I know, we are one of the only companies in our industry that does this,” Erickson said. “All consumers are given the option of taking a survey at the end of every call.” This approach validates consumer satisfaction with IC’s process is working. Erickson admits skepticism from some clients who believe a more aggressive approach will lead to a higher collection rate. “But that is not true,” Erickson said. “Our data proves that. “When we score out our calls and score well on our calls, we collect more money.”

Debt collection isn’t a new business. It has evolved dramatically since IC System’s founding over 80 years ago. With regulations, technology and a changing economy, organizations need a debt collection partner they can trust. Bryan Campbell, Business Development Manager of IC System, shared his expert advice for those that need help with receivables.“A partnership focus where the agency is an extension of your business is key. It’s also important that they have a strategic and clear understanding of your needs and put together a solution to meet them. It’s not cookie-cutter,” Campbell said.Companies typically engage an agency when their internal processes aren’t working. An uncertain economy and businesses not being able to keep all staff on the job contribute to the issues, especially in healthcare.“Cash flow is critical right now. Providers and businesses are understaffed, or those in the office aren’t trained to collect. An agency helps remove this strain and bring in the money needed,” Campbell added.Another important aspect of choosing a provider is technology and its ability to make things easier. IC System offers full capabilities on an online platform. They’ve also improved workflows by integrating with management software used by physicians, dentists and other organizations.Campbell also noted that credibility and licensure matters.“The U.S. population is very transient. You need an agency that can legally collect in all 50 states,” he stated.He also urged businesses to think about how to measure success in the industry.“Have they been doing this for a long time? Do they have endorsements? Like clients? Technology innovations?,” he said. “These are all good questions to ask.”For more information, visit https://www.icsystem.com/.

Chasing down a debt can be an unpleasant process, but that makes it all the more important to pick the right collection agency.In many ways, IC System Vice President of Client Service Chris Morris said, the collection agency is an extension of your business. While a payment may be delinquent, the relationship between a business and a client is still important.“You selected this collection agency to work on your behalf, and if you’re selecting a collection agency that is abusive or is harassing your customers, that’s going to reflect negatively on you and potentially create a negative view of your organization from the marketplace,” Morris said.IC System is responsible with its data collection, making sure not to expose phone numbers and addresses that other agencies may not treat as carefully.Morris said one of the best ways to see if a collection agency is the right partner is to review their website. If they have a professional site complete with features like online portals showing the process of cases and easy-to-find information, they’re more likely to be responsible when working to recover debt.“Collection agencies generally will contact consumers via the phone and via the mail and via email now, but I think what sets IC System apart is our client service and our commitment to our clients. That’s demonstrated through having a sense of urgency, being available to our clients via telephone or email … following up with any requests our clients have is incredibly critical,” he said. “The last thing you want to have is to entrust a significant amount of your revenue with a collection agency partner [where] you don’t know what they’re doing.”For more information, visit https://www.icsystem.com/.

Working at IC System for the past 15 years, Kristina Gursky, Director of Healthcare Account Management, has learned a thing or two, or 12, about the healthcare space's collections process.And, while the revenue cycle in healthcare is always changing, one thing remains the same: the need for compassion and empathy.Gursky said keeping up with all of the various billing processes and changes during the pandemic is challenging, but she and her team strive to be the go-to for process and regulation changes for IC System’s clients.“When things do change, that impacts our clients' patients’ billing process, so we’re sending out communications with what those changes look like, and we’re getting on the phone with our clients, explaining what those changes are, and how they may impact them," she said. "We want to keep them informed, because a law may change in a state they are not doing business in, but that their patient now resides in, and IC System follows the law in which the patient lives.”When it comes to patients, Gursky said no one wants to be sick or injured, and the goal is to help patients satisfy their financial commitments positively and compassionately.“We’re trying to get the message of advocacy out there,” Gursky said. “We’re patient financial advocates, and we’re advocating for a way for that patient to find a resolution.”For more information, visit https://www.icsystem.com/.