Method of collecting delinquent specialized debt

• US 20080189202A1
• Filed: 02/01/2008
• Published: 08/07/2008
• Est. Priority Date: 02/02/2007
• Status: Active Grant

• Current Assignee: Christopher Golden, James Zadoorian, Joseph Lamanna
• Original Assignee: Christopher Golden, James Zadoorian, Joseph Lamanna
• Inventors: LaManna, Joseph, Golden, Christopher, Zadoorian, James
• Granted Patent: US 7,949,597 B2
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 10/10 Office automation; Time management
• CPC Class Codes: G06Q 30/08 Auctions
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

An internet-based system for organization and collection of specialized debt that is delinquent; an example of specialized debt being healthcare debt.

Claims

1. An interactive internet-based system for conducting competitive bidding on overdue accounts receivable held by at least one healthcare provider, the system comprising:

electronic processors, electronic input-output devices for communicating information, a computer database, and a communications network;

wherein the computer database is linked to a website on the internet by means of a first electronic input-output device, whereby the website can be accessed by the at least one healthcare provider to send a portfolio of overdue accounts receivable from a software-based revenue cycle management platform to the computer database by means of a second electronic input-output device;

whereby the computer database comprises a first software means for sorting the portfolio based on a set of pre-determined parameters, and then ranking the overdue accounts receivable from most collectable to least collectable, and then generating a score for the portfolio, the score based on a “

collectability”

scale; and

whereby the website can be accessed by one or more debt recovery agencies to review the scored portfolio;

whereby the computer database is connected to the communications network by means of a third electronic input-output device, the communications network comprising a second software means for allowing the one or more debt recovery agencies to place bids on the portfolio.

2. An interactive internet-based system according to claim 1 wherein the website can be further accessed by the at least one healthcare provider to review bids placed on the portfolio;

whereby the computer database is connected to the communications network by means of a fourth electronic input-output device, the communications network comprising a third software means for allowing the at least one healthcare provider to contact the one debt recovery agency that wins the right to collect the portfolio of overdue accounts receivable.

3. An interactive internet-based system according to claim 2 wherein the right to collect the portfolio of overdue accounts receivable is an exclusive recovery right.

4. An interactive internet-based system according to claim 1 wherein the set of pre-determined parameters for sorting the portfolio of overdue accounts receivable comprises:

inpatient/outpatient status of service provided, amount of money due, length of time that an account receivable is overdue, and past history of uncollected debt.

5. An interactive internet-based system according to claim 4 wherein the set of parameters further comprises for each account receivable:

medical information, insurance information, billing information, demographic information, amount of money that the winning bidder receives upon collection of the debt, and instructions for bidding on the portfolio of overdue accounts receivable.

6. An interactive internet-based system according to claim 1 wherein the healthcare provider is a member selected from the groups consisting of:

a hospital, a physician practice, an urgent care facility, a walk-in clinic, a dental office, a medical practice, doctor'"'"'s office, an ambulatory surgery center, a chiropractic office, an eye care specialist, a nursing home, a home healthcare agency and a personal care provider.

13. A method for the collection of overdue accounts receivable held by healthcare providers comprising:

establishing an internet-based system for bidding on a collection of overdue accounts receivable;

contacting at least one healthcare provider;

contacting at least two debt collection agencies; and

connecting both the at least one healthcare provider and the at least two debt collection agencies to the internet-based system, wherein the system comprises;

1. first homepage software means for allowing the at least one healthcare provider to log onto the system;

2. second homepage software means for allowing the at least two debt collection agencies to log onto the system;

3. gathering software means for allowing the at least one healthcare provider to extract a set of overdue claims from a software-based revenue cycle management platform;

4. submitting software means for allowing the at least one healthcare provider to submit the set of overdue claims to the system;

5. algorithmic software means for analyzing the set of claims and ranking the set of claims from most collectable claim to least collectable claim to obtain a ranked set of claims;

6. transferring software means for removing the ranked set of claims to an online bidding platform;

7. scanning software means for allowing the at least two debt collection agencies to review the ranked set of claims on the online bidding platform;

8. auctioning software means for allowing the at least two debt collection agencies to place bids on the ranked set of claims;

9. reviewing software means for allowing the at least one healthcare provider to review bids placed on the ranked set of claims; and

10. communicating software means for allowing the at least one healthcare provider to contact the debt recovery agency that submitted a winning bid;

whereby the debt collection agency that submitted the winning bid collects the overdue accounts receivable held by the at least one healthcare provider.

14. A method according to claim 13 wherein the online bidding platform comprises directions for placing bids on the ranked set of claims.

15. A method according to claim 13 wherein the software-based revenue cycle management platform comprises, for each overdue account receivable, information further comprising:

medical information, insurance information, billing information, demographic information and amount of money that a winning bidder receives upon collection of the debt.

16. A method according to claim 13 wherein the debt recovery agency that submits the winning bid obtains an exclusive recovery right.

7. An internet-based system for collection of overdue accounts receivable held by a healthcare provider, the system comprising:

first homepage software means for allowing at least one healthcare provider to log onto the system;

second homepage software means for allowing debt recovery agencies to log onto the system;

gathering software means for allowing the at least one healthcare provider to extract a set of overdue claims from a software-based revenue cycle management platform;

submitting software for allowing the at least one health care provider to submit the set of overdue claims to the system;

algorithmic software means for analyzing the set of claims and ranking the set of claims from most collectable claim to least collectable claim, thus providing a ranked set of claims;

transferring software means for removing the ranked set of claims to an online bidding platform;

scanning software means for allowing the debt recovery agencies to review the ranked set of claims on the online bidding platform;

auctioning software means for allowing the debt recovery agencies to place bids on the ranked set of claims;

reviewing software means for allowing the at least one healthcare provider to review bids placed on the ranked set of claims;

communicating software means for allowing the at least one healthcare provider to contact the debt recovery agency that submitted a winning bid.

8. An internet-based system according to claim 7 wherein the healthcare provider is a member selected from the group consisting of:

a hospital, a physicians practice, an urgent care facility, a walk-in clinic, a dental office, a chiropractic office, an eye-care specialist, a nursing home, a home healthcare agency, and a personal care provider.

9. An internet-based system according to claim 7 wherein the software-based revenue cycle management platform comprises for each overdue account receivable, information comprising:

in-patient/out-patient status of service provided, amount of money due and length of time an account receivable is overdue.

10. An internet-based system according to claim 7 wherein the debt recovery agency that submits a winning bid retains an exclusive recovery right.

11. An internet-based system according to claim 7 wherein the software-based revenue cycle management platform comprises, for each overdue account receivable, information further comprising:

medical information, insurance information, billing information, demographic information, and amount of money that the winning bidder receives upon collection of the debt.

12. An internet-based system according to claim 7 wherein the online bidding platform comprises directions for placing bids on the ranked set of claims.

17. An interactive internet-based system for conducting competitive bidding on overdue accounts receivable held by at least one healthcare provider, the system comprising:

electronic input-output devices for communicating information, a computer database, and a communications network;

wherein the computer database is linked to a website on the internet by means of a first electronic input-output device, whereby the website can be accessed by the at least one healthcare provider to send a portfolio of overdue accounts receivable from a software-based revenue cycle management platform to the computer database by means of a second electronic input-output device;

whereby the computer database comprises a first software means for sorting the portfolio based on a set of pre-determined parameters, ranking the overdue accounts receivable from most collectable to least collectable, generating at least two subsets from the portfolio of overdue accounts receivable, and then generating a score for each of the at least two subsets of the portfolio of overdue accounts receivable, the score based on a collectability scale; and

whereby the website can be accessed by one or more debt recovery agencies to review the scored portfolio;

whereby the computer database is connected to the communications network by means of a third electronic input-output device, the communications network comprising a second software means for allowing the one or more debt recovery agencies to place bids on the portfolio.

18. An interactive internet-based system according to claim 17 wherein the website can be further accessed by the at least one healthcare provider to review bids placed on each of the at least two subsets generated from the portfolio of overdue accounts receivable;

whereby the computer database is connected to the communications network by means of a fourth electronic input-output device, the communications network comprising a third software means for allowing the at least one healthcare provider to contact the debt recovery agency that wins the right to collect the portfolio of each of the at least two subsets generated from the portfolio of accounts receivable.

19. An interactive internet-based system according to claim 18 wherein the right to collect the portfolio of overdue accounts receivable is an exclusive recovery right.

20. An interactive internet-based system according to claim 17 wherein the set of pre-determined parameters for sorting the portfolio of overdue accounts receivable comprises:

inpatient/outpatient status of service provided, amount of money due, length of time that an account receivable is overdue, and past history of uncollected debt.

21. An interactive internet-based system according to claim 20 wherein the set of parameters further comprises for each account receivable:

medical information, insurance information, billing information, demographic information, amount of money that the winning bidder receives upon collection of the debt, and instructions for bidding on the portfolio of overdue accounts receivable.

22. An interactive internet-based system according to claim 17 wherein the healthcare provider is a member selected from the groups consisting of:

a hospital, a physician practice, an urgent care facility, a walk-in clinic, a dental office, a medical practice, doctor'"'"'s office, a chiropractic office, an eye care specialist, a nursing home, a home healthcare agency and a personal care provider.

23. A method of organizing delinquent specialized debt to obtain a portfolio of specialized debt, the method comprising:

(1) providing a secure website on the internet for access by at least one holder of specialized debt;

(2) obtaining over the website at least one segment of the delinquent specialized debt from the at least one holder, wherein the specialized debt is disorganized; and

(3) organizing the at least one segment of delinquent specialized debt into a portfolio of specialized debt, wherein the portfolio of specialized debt has a value that is presentable to a community of selective buyers for bidding on said portfolio.

24. A method according to claim 23 wherein the holder of the specialized debt is a healthcare provider.

25. A method according to claim 24 wherein the specialized debt held by the healthcare provider has the properties of:

(a) patient privacy requirements as outlined by HIPAA (Health Insurance Portability and Accountability Act of

     1996);

(b) state and federal regulatory requirements; and

(c) market image requirements of healthcare executives.

26. A method according to claim 23 wherein the step of organizing comprises:

(a) sorting the at least one segment of delinquent specialized debt by sorting parameters to obtain a sorted segment of delinquent specialized debt;

(b) ranking the sorted segment of debt by a ranking parameter to obtain a ranked segment of delinquent specialized debt; and

(c) scoring the ranked set of debt by a scoring parameter to obtain a portfolio of specialized debt, wherein the portfolio of specialized debt has a value that is presentable to a community of selective buyers of said portfolio for bidding on said portfolio.

27. A method according to claim 26 wherein the sorting parameters comprise, for each specific delinquent account:

(a) outstanding unpaid balance;

(b) age of account;

(c) prior collection history;

(d) demographics of the debtor profile, based on household income and home value;

(e) geographic distribution of debtor, based on a parameter which is a member selected from a state and a zip code;

(f) type of service provided to the debtor, wherein the type of service is based on standardized industry diagnostic codes;

(g) date of service provided; and

(h) type of debtor/payer classification, the type being a member selected from the group consisting of individual, insurance provider, and government provider.

28. A method according to claim 26 wherein the ranking parameter comprises:

(a) an intrinsic value for each sorting parameter; and

(b) a comparative value for each sorting parameter, wherein the comparative value is a multiple of the intrinsic value.

29. A method according to claim 26 wherein the scoring parameter comprises a calculation to obtain a final score for the portfolio of specialized debt, whereby the calculation comprises an addition of the ranking parameters.

31. A method according to claim 30 wherein the portfolio of specialized debt is prepared according to claim 23.

30. A method of conducting an auction of delinquent specialized debt over the internet, the method comprising:

(a) providing a secure website for access by at least two selective buyers of said specialized debt;

(b) obtaining over the website necessary information from the at least two selective buyers;

wherein the necessary information comprises;

(1) financial statement, (2) years in business, (3) experience with specialized debt, (4) industry affiliations, and (5) references;

(c) rating the at least two selective buyers by use of a calculation that employs the necessary information to obtain a rating number for each of the two selective buyers;

(d) contacting the at least two selective buyers over the website to advise them of their rating number; and

(e) allowing the at least two selective buyers to access a portfolio of specialized debt, provided that their rating number is acceptable.

32. A method according to claim 30 further comprising the steps of:

(f) accepting bids on the portfolio of specialized debt from the at least two selective buyers;

(g) reviewing the bids on the portfolio of specialized debt;

(h) determining a winner of the bidding on the portfolio of specialized debt; and

(i) contacting the winner of the bidding on said portfolio;

whereby steps (f) through (i) are conducted over the internet.

33. A method according to claim 32 wherein steps (f) through (i) are conducted by the seller of the portfolio of specialized debt.