What should collections specialists begin setting up once a patient's account is past due?

When a patient's account is past due, the first step for collections specialists is to begin setting up payment arrangements. This approach allows for a structured plan enabling the patient to gradually pay off their outstanding balance, which can facilitate recovery of the owed funds while maintaining the patient’s relationship with the healthcare provider. Payment arrangements demonstrate flexibility and understanding towards the patient's financial situation, making it less likely that they will feel overwhelmed by a full payment demand.

On the other hand, options such as extended credit terms may not be suitable at this stage, as they imply a modification of the original credit agreement rather than addressing the past due amount effectively. Legal action is typically considered a last resort after other avenues have failed, as it can lead to a more adversarial relationship with the patient. Financial planning sessions, while potentially beneficial in some contexts, do not directly address the immediate need of recovering the past due amount and may not be practical for swift collection. Thus, setting up payment arrangements is the most appropriate first step in this scenario.