Debt Collection for Aged Care Facility in Australia

In a debt collection case for an aged care facility, Slater Byrne Recoveries recouped the full amount of $68,114.32, plus $7,492.57 in commission. In another case for the same Client, we facilitated a payment plan for a debtor who had an outstanding unpaid amount of $103,866.85.

Debt Collection for Aged Care Facility in Australia

The Issue

Debt collection for Aged Care Facilities in Australia involves care and compassion. We understand the difficulties in these times patients and their families are under, both financially and emotionally. Especially at this time of the pandemic, recovering debt can be stressful for both the facility and the patient and can add to the burden of families who may be struggling with COVID-19 or its after-effects. But debts still need to be paid so these Aged Care Facilities can continue operations. Without debt collection, small businesses, like an aged care facility, will be cash flow negative.

Thus, acting as the debt collection agency for an aged care facility in NSW, Slater Byrne Recoveries needed to exert a little more care and compassion. We understand that our role is not only to help our Client recover unpaid debts but also to help the debtor pay its debt in full.

The Solution

We will illustrate here how no two debt collection services cases are the same even though they involve the same client and similarly situated debtors – although both cases were both resolved fairly quickly.

The Aged Care facility tapped Slater Byrne Recoveries as its debt collection agency in Australia. As is standard in our debt collection process for small business, our accounts manager sent out emails to the debtors to:

  1. inform them that the Aged Care facility appointed us as its debt collection agent,
  2. that they have unpaid amounts that are due, and
  3. that they have seven days from receipt of the email to pay the amount.

Case No. 1: Full Amount + Costs Recovered

For the first debt recovery case, the outstanding unpaid amount was $75,606.89. Our accounts manager spoke with the debtor’s son who said his mother signed a cheque for $60K and left it at the table in her room at the facility. We then called the resident administrator to have staff check the patient’s room to confirm. When we called again, the administrator confirmed that the patient’s account of $68,114.32 has been paid in full.

So, we followed up with the patient’s son to collect on the commission, but he advised that his mother was in the hospital. He said he would just touch base once she can get to the bank. Understanding that caring for a parent in the hospital is never easy, we waited to collect on the commission fees. Indeed, a week later, we received a call saying the debtor has paid our commission fees.

Case No. 2: 5-Month Payment Plan for $100K Debt

For the second debt recovery case, the outstanding unpaid amount was $103,866.85. The debtor said she is only able to pay $15,000 per month. However, our Client preferred $30,000 per month, plus the monthly fee of $5,900-$6,100 per month. We returned to the debtor and informed her of the Client’s preferred payment plan. The debtor then called back with an offer of $15,000 for the first three months and $30,000 for the succeeding months. Also, the debtor agreed to pay the monthly fees. The client accepted this offer.

The Outcome

The outcomes of the two debt recovery cases for the Aged Care facility were different. For the first case, we recovered the full amount in one payment. In the second case, we received a payment plan where the debtor will pay the full amount over five months. In both cases, the outcome assured the Client of positive cash flow and the debtors are not unnecessarily burdened with the payment plans as they were accepted mutually by both parties. We also recouped the debt collection costs in both cases so the Client will not be out of pocket.

At Slater Byrne Recoveries, we strike the balance between doing our best efforts to recover the full amount for our Clients and maintaining the highest ethical standards in approaching our Client’s debtors.

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