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Green Flag Profit Recovery Business Account ManagementTRANSCRIPT
® 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
® 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
® 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
® 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
® 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
® 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
® 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.
® 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%.
® 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
® 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.”
® 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”
® 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.
® 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.
® 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.
® 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?
® 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
® 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%
® 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
® 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.
® 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?
® 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!!!!
® 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