Running a skilled nursing facility is challenging. In addition to being challenging, it’s also extremely expensive. You have to hire enough caretakers to meet the needs of your residents, and you need to be sure that your facility is well-maintained.
Sometimes, residents simply can no longer pay, and that puts a strain on your business. As a long-term care provider, you should know that you do have the option to pursue the money that you are owed through a private collections process. If residents or other responsible parties refuse to pay, then you may want to look into your legal obligations and rights, so that you can make an attempt to collect.
How does the collections process begin for long-term care facilities?
Initially, long-term care facilities will start collections activities by having their attorney send a letter to the person in default. The attorney will detail what the debt is, explain it to the recipient and tell them why they may be responsible for the debt.
After this letter is sent out, many people do respond. They may want to work out a payment plan or discuss other options that are available to repay what’s owed.
In other cases, a debtor may not respond to you. They may state that they don’t owe the debt, either. If that’s the case, then your attorney will work with you to decide how to proceed. They’ll represent you if you need to take legal action through a civil court or go through arbitration.
How can arbitration help when a debtor owes payments that are past-due?
Arbitration is usually less expensive than heading to civil court, which may be good for both parties. In arbitration, you’ll have the case heard much like it is in a civil courtroom, but an arbitrator will make a determination. Arbitration allows you and the other party to work out a solution by presenting the evidence to an unbiased third party.
If this does not work, then you do have the option to move forward with a civil claim. This claim may take longer. Awards may also be more difficult to collect, depending on the financial status of the debtor. Your attorney can review these options with you to let you know which, if any, would be a good option for your case.