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® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022 SOLUTIONS FOR YOUR BUSINESS ACCOUNTS MANAGEMENT

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Green Flag Profit Recovery Business Account Management

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Page 1: Green Flag Businessaccountsmanagement2

® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022

SOLUTIONS FOR YOURBUSINESS

ACCOUNTSMANAGEMEN

T

Page 2: Green Flag Businessaccountsmanagement2

® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022

Transworld Systems Inc.

Company Overview

• In business since 1970• 60,000+ clients• 150 Offices Nationwide• Recovered $2.4 billion in the last 5 years for companies

across all industries including Fortune 500 & 100 Companies• Success rate of more than 4 times that of the industry

average*• 24/7 Online account management

*Based on ACA Statistics

Page 3: Green Flag Businessaccountsmanagement2

® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022

What the Experts Say

“The numbers speak for themselves – recovery of over $230 million dollars with a 53% recovery rate and an ROI of almost 4,000% with a collection cost of 2.5%.” Steve Hellebush, VP of Business Development, Medical Group Management Association

“The company has a collection rate of well over 50%. The typical collection firm gets only 20% and keeps 25% to 50% of recovered funds.” Fortune Magazine

“Transworld gets credit for the highest recovery rate in the industry.” Barron’s

Page 4: Green Flag Businessaccountsmanagement2

® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022

Conventional Two Stage Approach

Most practices use a conventional, two stage approach:

Day 30 Day 60 Day 90 Day 120 Day 150

Statement

Statement Statement,Letter #1,Phone Calls

Statement,Letter #2,Phone Calls

Statement,Letter #3,Phone Calls

In-House Efforts

Percentage Collection

Agency

Day 180

Intensive telephone contact and/or legal action at a cost of 25-50% of recovered amounts.

According to the Dartnell Institute of Business Research, the average cost to work an account over a six month period is $31.60

Page 5: Green Flag Businessaccountsmanagement2

® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022

GreenFlag Three Stage Approach

Transworld Systems

In-House Efforts

ConventionalCollectionMethods

Page 6: Green Flag Businessaccountsmanagement2

® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022

GreenFlag Profit Recovery’s Three Stage Approach

Current 30 Days 60 Days

Statement StatementPhone Call

StatementPhone Call

90 Days

104 Days

118 Days

132 Days

146 Days

180 Days

Verbal Demands – Phase II Collections

50% Contingency

Fixed fee of typically less than $10 per account. You control the process.

Limit internal efforts to less than $10 per account

We contact the slow paying accounts every 10-14 days, at the your direction. Making up to 5 contacts, each progressively stronger – Phase I Collections.

Optimize In-House

Efforts

In-House Use

of Third Party

(GreenFlag)

ConventionalCollectionMethods

Page 7: Green Flag Businessaccountsmanagement2

® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022

Start Early – Recover More

Fact: Companies wait to take action because they don’t want to pay a percentage and they don’t want to alienate their patient. Fact: GreenFlag is designed to take action early and diplomatically, recovering earlier and maintaining valuable patient relationships.

According to the U.S. Department of Commerce, the older an account, the harder it is to collect.

Page 8: Green Flag Businessaccountsmanagement2

® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022

Start Early – Recover More

National Statistics Prove it

• The American Collectors Association reports an industry recovery rate average of 15% and a collection cost averaging 30%.

•Transworld Systems’ clients experience a recovery rate averaging 46.8% at a collection cost of 2.7%.

Page 9: Green Flag Businessaccountsmanagement2

® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022

Convenient Online Access

• Submit accounts online 24/7 via our secure Online Client Portal (OCP)

• You control when to start, stop,or suspend accounts

• Complete reporting on all accounts

• Upload spreadsheets with account information and submit large groupsof accounts instantly

• Easy to learn, helpful tutorials, and superior online support

Page 10: Green Flag Businessaccountsmanagement2

® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022

The Demands: First Party Letter

Client return address:

• Matches your remittance address

First Party Letter: (Option)

• Intensive Final Notice

Remittance Voucher• Money goes directly to

you (envelope included)

First Party Letter• “…appears to be from

our clients office. Final notice or be placed in collection.”

Page 11: Green Flag Businessaccountsmanagement2

® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022

The Demands: Third Party Letter

Local Impact:• Matches zip code of

debtor to the nearest TSI regional office

You Choose: • 2nd

Demand (would follow 1st party letter)

• 1st DemandRemittance Voucher• Money comes directly

to you (envelope included)

Third Party Intervention

• “…from a collection agency”

Page 12: Green Flag Businessaccountsmanagement2

® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022

They may get upset !

Because they were turned over to a collection agency, they may call because

they are upset.

At this point you may read the telephone script we provide you.

WE are the bad guys, not YOU !

Which is more effective, you calling your customer or your customer calling

you?

Report partial payments if necessary and we will follow up with them for the

remaining balance due.

Page 13: Green Flag Businessaccountsmanagement2

® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022

The Demands: Why Do They Work So Well?

• Return address is from one of our 150 offices nationwide

• Increasingly more intense, alternating between credit card statement size and full letter size

• Sent every 14 days, systematically unless client stops service

• Strategic language = psychological impact

• Demands sent in varying sizes, and different envelopes

• Optional, diplomatic thank you letter helps you retain your valued patients.

Page 14: Green Flag Businessaccountsmanagement2

® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022

Thank You Letter

At your request, we’ll send a thank you letter to your customer, at no additional cost!

This will help your business retain valuable client relationships.

Page 15: Green Flag Businessaccountsmanagement2

® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022

The Power of Third Party Intervention

• The debtor knows you are serious about

getting your money.

• The debtor is concerned his debt will affect his

ability to get credit.

• The debtor knows the efforts to collect will

continue until he pays.

Why is contact from an outside party more effective than in-house efforts?

Page 16: Green Flag Businessaccountsmanagement2

® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022

The GreenFlag Advantage

•Standardizes the A/R process for slow paying accounts

•Our service guarantees these accounts are contacted every 10-14 days

•Identify and evaluate existing A/R

•Effective tool for clean-up

•Completed within 90 days

•Gives the business the advantage of using a third party, diplomatic approach earlier in the process

•Preserves client/customer/debtor relationships

•Reduces internal collection costs and staff overload

Page 17: Green Flag Businessaccountsmanagement2

® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022

Self-Pay Recover Results Example

Practice Average Balance

Average Age

Recovery Rate

% Response

Cost as a %

Women’s Group $241.28 4.5 mos 48.1% 70.3% 7.6%

Neuropsych $466.44 3.3 mos 38.5% 40.5% 8.8%

Birth & Beyond $211.37 3.7 mos 44.3% 61.6% 11.1%

Oncology $348.79 7.1 mos 33.1% 42.8% 6.9%

Surgery $648.64 3.8 mos 35.4% 53.2% 3.4%

Family Med $196.18 5.9 mos 27.9% 39.6% 12.9%

Orthopedic $532.19 4.3 mos 46.2% 69.7% 3.2%

Pain Consultant $381.59 10.7 mos 31.2% 50.2% 6.7%

Combined Average $378.31 5.4 mos 38.1% 53.5% 7.6%

Page 18: Green Flag Businessaccountsmanagement2

® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022

Why it Works

• We provide the impact of third party for an average of less than $10* per account while minimizing internal efforts

• Preserve your valued client relationships.• Complete monthly reporting on all accounts.• Interactive, secure Online Client Portal (OCP)

that allows you to submit accounts instantly.• Return address is from closest debtor office

which is zip code activated. Local impact!• Size changes from mailgram to letter every 10 days.• Return payment envelope & tear off voucher 1st, 3rd

and 5th demands – The only thing we don’t do is lick the stamp!

• FDCPA Disclaimer at bottom of 1st Demand*Company Average

Page 19: Green Flag Businessaccountsmanagement2

® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022

GreenFlag vs. Contingency Agency

Assumptions:Accounts Submitted: 5,000 accountsAverage Balance: $350$ Outstanding: $1,750,000

Greenflag Profit Recovery Other AgencyEst. Recovery Rate: 25% 14%Est. $ Recovered: $437,500 $245,000Collection Cost: $7.99/acct 35%Total Cost: $39,950 $85,750Net $ Recovered: $397,550 $159,250Difference: +$238,300Secondary Recoveries*: +$98,437.50

Additional profit using GreenFlag Profit Recovery by Transworld Systems, instead of a contingency collection agency alone = $238,300+$98,437.50(secondary)=$336,737.50

*Secondary recoveries for accounts not recovered by TSI forwarding to the contingency agency estimating 15% recovery rate at 50% cost.

Page 20: Green Flag Businessaccountsmanagement2

® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022

The Power Beyond GreenFlag

•You decide the next step: Option=Verbal Demands Collection - Phase II

•Seamless flow from in-house efforts to a contingency agency

•Your practice benefits from a professional team of well-trained collectors using industry-leading technology from telephone centers throughout the country.

•You can move to legal action and we pay all attorney and court fees.

What happens if debtors don’t pay after the demands?

Page 21: Green Flag Businessaccountsmanagement2

® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022

System Size Worksheet

At what point would you like to use our service? (i.e., 60, 90 days) ___ _____days

How many accounts will reach that point every month? _________

Our PROFIT RECOVERY service is good up to 24 months x 24 months

Total: ________ Accounts to be referred now: ________

Total number of accounts referred: _________

Total # Accounts __________x Avg. Bal. $ ________ = Total $ Referred ____________

Total $ Referred ________________x_______ (Recovery Rate %) = $ _____________

________ (Total # Accounts) x $ ________ (Unit Cost) = $_________ (Total Investment)

Investment $________ ÷ Avg. Bal. $_________ = ______ (# Accounts to get back investment)

++++++Secondary recoveries!!!!

Page 22: Green Flag Businessaccountsmanagement2

® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022

SOLUTIONS FOR YOURBUSINESS

MANAGEMENT

ACCOUNTS