DOCTORS and dentists are hiring debt collectors as increasing numbers of NSW families fail to pay their bills.
One of Australia's largest debt-collection agencies is blaming a 51 per cent rise in healthcare debts over the past year on the soaring cost of living, which is crippling low-income families.
"There is nothing else to explain this high jump other than the fact that our clients' patients are not paying them as promptly as they were, hence the need to outsource more to us," Prushka CEO Roger Mendelson said.
"Healthcare is an essential expenditure, not a discretionary one, but householders are under greater financial pressure and are hanging on to (their) cash.
"This is quite significant and the magnitude of the increase is such that it cannot be explained logically by any other trend."
Prushka, which was established in 1977 and is Australia's largest privately owned debt collecting agency, has 886 healthcare clients in NSW including dentists, medical centres and physiotherapists.
"We are often the canary in the mine and I see that as an early warning sign of household financial pressure," Mr Mendelson said.
The firm also acts on behalf of more than 155 veterinary clinics across the State that are chasing cash owed to them by hard pressed pet-owners.
Maynooth Neurology in Orange has had to tighten up its payment policies after more patients were failing to pay their bills.
"If you have debtors it means you have to put up your fees for the people who do pay to cover those debts," said practice manager Sue Gentles.
"We don't take cheques any more as a lot of them were bouncing and often the patients were still getting the Medicare rebate because they had a receipt.
"We are owed hundreds of dollars, which is a lot to us because we are a small practise. Chasing these debts wastes a lot of time."
"The services are paid for, the doctor gets paid and there is no hold-up regarding the quality of care.
"I guess we could not forward on the results to the patient's GP until they pay the bill but that is not in the interest of the patient."
Raymond Terrace Family Practice manager Phil Hickling said the clinic's patients were doing it tough.
"We have a lot of low-income earners in this area, mainly young people and single mothers who are finding it hard to pay," he said.
"The price of electricity, food and petrol has gone up and we have noticed that a lot of our clients are struggling.
"We probably have about 50 clients with debts at the moment, they are only small amounts but it would probably be about $3000 in total."
One of Australia's largest debt-collection agencies is blaming a 51 per cent rise in healthcare debts over the past year on the soaring cost of living, which is crippling low-income families.
"There is nothing else to explain this high jump other than the fact that our clients' patients are not paying them as promptly as they were, hence the need to outsource more to us," Prushka CEO Roger Mendelson said.
"Healthcare is an essential expenditure, not a discretionary one, but householders are under greater financial pressure and are hanging on to (their) cash.
"This is quite significant and the magnitude of the increase is such that it cannot be explained logically by any other trend."
Prushka, which was established in 1977 and is Australia's largest privately owned debt collecting agency, has 886 healthcare clients in NSW including dentists, medical centres and physiotherapists.
"We are often the canary in the mine and I see that as an early warning sign of household financial pressure," Mr Mendelson said.
The firm also acts on behalf of more than 155 veterinary clinics across the State that are chasing cash owed to them by hard pressed pet-owners.
"If you have debtors it means you have to put up your fees for the people who do pay to cover those debts," said practice manager Sue Gentles.
"We don't take cheques any more as a lot of them were bouncing and often the patients were still getting the Medicare rebate because they had a receipt.
"We are owed hundreds of dollars, which is a lot to us because we are a small practise. Chasing these debts wastes a lot of time."
"The services are paid for, the doctor gets paid and there is no hold-up regarding the quality of care.
"I guess we could not forward on the results to the patient's GP until they pay the bill but that is not in the interest of the patient."
Raymond Terrace Family Practice manager Phil Hickling said the clinic's patients were doing it tough.
"We have a lot of low-income earners in this area, mainly young people and single mothers who are finding it hard to pay," he said.
"The price of electricity, food and petrol has gone up and we have noticed that a lot of our clients are struggling.
"We probably have about 50 clients with debts at the moment, they are only small amounts but it would probably be about $3000 in total."
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