Marketing & Business Development Flashcards

A hospital issues an RFP for third-party collection services. Which proposal element will most likely set an agency apart from competitors?

Answer: Documented compliance management and verified historical recovery results

Creditors value proof of compliance and real performance data over low price or unrealistic promises.

Under a typical contingency fee arrangement, how is a collection agency paid?

Answer: A percentage of the amounts actually recovered

Contingency pricing means the agency keeps an agreed percentage of what it actually collects.

How is the liquidation rate that clients use to compare agencies calculated?

Answer: Dollars collected divided by dollars placed

Liquidation rate measures the share of placed dollars the agency recovers.

A creditor splits similar portfolios between two agencies to compare their results. What is this practice called?

Answer: Champion/challenger testing

In champion/challenger testing, the incumbent agency competes with a challenger on comparable placements, and the stronger performer earns more volume.

An agency wants to market its services to medical providers. Which requirement must it be ready to meet?

Answer: Signing a HIPAA Business Associate Agreement

Agencies that handle protected health information for covered entities must sign a Business Associate Agreement under HIPAA.

Why should an agency track client lifetime value when planning business development?

Answer: It shows how much is worth spending to win and keep a client

Client lifetime value shows how much the agency can justify spending on acquiring and keeping clients.

An agency already handles bad-debt placements for a utility. Which offering is the most natural cross-sell?

Answer: Early-out or first-party pre-charge-off servicing

Early-out programs extend the agency's receivables expertise to earlier stages of the client's revenue cycle.