Debt Collection Worklist Prioritization via Net Balance Calculation
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Solution Overview
Problem
Current methods for managing accounts receivable often result in suboptimal resource utilization due to the inability to simultaneously consider all factors impacting revenue recovery, leading to inefficient debt collection and increased costs.
Innovation Solution
A system and method that prioritize debt collection efforts by importing financial account information, calculating net account balances, assigning accounts to collectors based on predetermined algorithms, and generating worklists that optimize the prioritization order for collectors to minimize revenue loss, incorporating expected bad debt indices and contractual adjustment factors.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If traditional worklist methods are used for debt collection, then collection operations can be performed, but resource utilization is suboptimal and collection efficiency is reduced
Solution Approach 1:
The patent segments the debt collection process into distinct functional modules: data import module, net account balance calculation module, priority calculation module, collector assignment module, and worklist generation module. Each module handles a specific aspect of the collection process, allowing for optimized resource allocation and improved collection efficiency without overwhelming system complexity
Solution Approach 2:
The system performs preliminary calculations of net account balances and collection priorities before assigning accounts to collectors. By pre-calculating these parameters using historical data and contractual factors, the system enables collectors to focus on high-priority accounts first, maximizing resource utilization and collection effectiveness
2Reliability
If all factors impacting revenue recovery are simultaneously considered, then collection optimization is improved, but calculation and processing complexity increases
Solution Approach 1:
The patent implements dynamic priority calculation that adapts to changing account conditions and collector performance. The system continuously updates collection priorities based on current account status, historical payment behavior, and contractual adjustments, allowing for accurate revenue recovery predictions while managing calculation complexity through iterative refinement rather than exhaustive simultaneous analysis of all factors
3Productivity
If high-risk accounts are strategically targeted, then collection rates are enhanced and revenue loss is reduced, but identification and processing time increases
Solution Approach 1:
The system performs preliminary risk assessment and priority calculation for all accounts before collection activities begin. By pre-identifying high-risk accounts using historical data, contractual factors, and account characteristics, the system enables collectors to immediately focus on the most critical accounts without time-consuming analysis during collection calls, thus enhancing collection rates while minimizing time loss
Solution Approach 2:
The system automatically generates prioritized worklists and assigns accounts to appropriate collectors based on predefined criteria and algorithms. This self-service capability eliminates manual account analysis and prioritization, allowing the system to identify and process high-risk accounts efficiently without requiring extensive human time investment in account evaluation
Data Source
AI summary
A system comprises an expected bad debt generator for generating probabilities of bad debt based on payer, types of services and or products rendered, and account information; a contract modeling engine for generating contractual adjustment factors based on contracts between payer and service providers, a gross net conversion generator for generating gross net conversion factors based on payer and account information; a priority calculating engine for prioritizing accounts and batches of accounts; a collector assignment engine for assigning the accounts to one or more collectors based on a predetermined collector assignment algorithm; an account batching engine for grouping accounts into batches for the purpose of best utilizing payer contacts; and a worklist generator for generating a worklist for each collector, the worklist identifying a prioritization order of one or more payers for the collector to contact to collect debt, the prioritization order being based on a predetermined prioritization algorithm.