What does "last resort collections" mean in medical billing?

"Last resort collections" in medical billing refers to the process of taking legal action or involving collection agencies for unpaid debts. This step is typically taken when all other efforts to collect payment have failed. Medical providers and billing departments will usually attempt various other methods of collecting payments from patients first, such as sending letters, making phone calls, or setting up payment plans. However, when these strategies prove ineffective and significant amounts are owed, providers may decide that involving a collection agency or pursuing legal action is necessary to recover the funds owed to them. This is often seen as a measure of last resort because it can have serious implications for the patient, including damage to their credit score. Therefore, this choice accurately captures the essence of what "last resort collections" entails in the realm of medical billing.