My hospital has recently made a difficult business decision to outsource long term accounts payable. Accounts of individuals who wish to have a long term montly payment plan (> 90 days from final billing and insurance payment) are outsourced to a company (CSI) having a relationship with Sun West Bank. For these long term payment plans individuals are extended credit at a 6.9% interest rate.
We have received considerable negative feedback on this policy. We feel we have made a reasonable business decision, electing not to be a bank if you will. On the other hand, we understand the sensitivity of the economic impact and the long standing practice of most hospitals to extend credit on long term accounts with no interest.
I am interested to know if anyone works in a facility or knows of an organization that has taken this difficult position of outsourcing long term payment plans. I would like to get more information or talk to someone who has gone through this difficult process.
Mike