The Magnitude of Healthcare Collections

According to the Roper Poll, healthcare costs are the No. 3 concern of consumers nationally.

The federal government estimates healthcare is a $1 trillion industry.

According to a U.S. Census Bureau report, nearly 42 million people were without healthcare insurance in 1996. The American Hospital Association (AHA) estimates a total of 46 million Americans will be without health insurance by the year 2000.

Also according to AHA, 78 percent of employees and their families were covered by employers in 1990.In 1995, the number dropped to 74 percent. The association projects that by 2002 it will decline to 70 percent.

Approximately 58.2 million Americans received care through HMOs in 1995, according to a trends report issued by the American Association of Health Plans.

According to Families USA, the cost of healthcare for the average family will jump from $4,296 per year to $9,397 by the year 2000.

Assuming status quo laws and an annual growth rate of 9.5 percent during the 1990s, personal healthcare expenditures are projected to be $957 billion in 1995 and $1,456 trillion in 2000.

According to Zimmerman & Associates, in 1994, hospitals wrote off about $11 billion in bad debt--mostly self-pay balances. In 1995, consumers charged $6.6 billion in medical costs on their Visa cards, up 34 percent from 1994.

According to a 1996 USA Today and CNN poll of 522 people who filed for bankruptcy, 28 percent reported that medical bills contributed to their decision to file.

National health expenditures were $51 billion in 1967 or 6.3 percent of the GNP. In 1995, total Health Care Financing Administration (HCFA) program outlays were 248.9 billion or 16.4 percent of the federal budget.

The Growth of Healthcare Collections

Ranking No. 1 for average new business in ACA's 1995 and 1996 Top Collection Market Surveys, hospitals nearly doubled in dollar amount of new business in the past year, rising from $7.9 million in the 1995 survey to $14.4 million in 1996.

The average recovery rate for healthcare/medical related collection accounts is 23.06%

Seventy-seven percent of ACA member agencies collect past-due healthcare/medical accounts.

According to a 1996 survey conducted by Zimmerman & Associates, nearly 88 percent of hospital CFOs indicated a serious interest in outsourcing.

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