MPILO Central Hospital is set to engage debt collectors to recover close to $10 million owed in medical bills, as the hospital seeks to fund its operations.
SILAS NKALA STAFF REPORTER
In a notice yesterday, the hospital invited tenders for debt collection services.
“Tenders are invited from legal firms with debt collection services to collect amounts owed by the hospital clientele,” the hospital said.
Debt collectors are expected to charge the defaulting clients a 20% administration fee, which will be retained as payment on remitting the collected owed amount.
“(Debt collectors) should have their own transport and personnel to work with,” the notice reads.
“(They must) maintain the register book for debtors who shall be checked by the hospital accountant or any delegated accounting officer.”
The notice advises the prospective debt collectors to work hand in hand with the Dunning team, a debtors’ group, and declare all money paid by the debtors to the hospital.
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The notice states that the debt collectors should compile debtors’ reconciliation statements at the end of each month and report to the finance director.
To qualify, the prospective bidders are expected to have certificates of incorporation, bank statements, a valid vendor number, while remittance to the hospital should be in US dollars.
The prospective bidders should have a precise plan on how debt collection activities will be undertaken, proof of payment of tender fee, proof of registration from the law society, company profile, curriculum vitae of directors or partners and traceable references.
The notice states that the tender documents were made available on Wednesday.
As at December last year, Mpilo was reportedly owed more than $10 million by patients, a development that left the health institution struggling to purchase drugs and food for those hospitalised.
However, it appears the debt has been escalating instead of being reduced amid plans by the hospital to engage debt collectors to force its clientele to pay.
