As we step into 2025 I’m incredibly proud to share that Medical Data Systems, Inc. (MDS) has been recognized as one of the Top Debt Collection Agencies of the year by Financial Services Review. This honor is a testament to the hard work and dedication of our team, as well as our commitment to combining empathy with innovative AI technology to support patients and healthcare providers alike. In the following article, you’ll discover how our unique approach is making a meaningful difference in the healthcare industry—bridging gaps, fostering trust, and driving results.
A call came into the hospital’s billing department with surprising news—a high-dollar patient balance, that was overdue for over 19 months was finally resolved. The debt collection agency handling the account worked behind the scenes—identifying missed insurance coverage, correcting billing errors, and arranging a flexible payment plan with the patient. The funds are now on their way to the hospital. Impressed by the agency’s ability to recover such an aged account, the VP of Revenue Cycle asks, ‘Who’s behind this?’ The answer—Medical Data Systems, Inc. (MDS), a seasoned debt recovery expert.
This thoughtful and results-driven approach is no accident—it reflects decades of expertise and innovation at MDS. For 38 years, MDS has been a trusted partner to over 600 hospitals nationwide in recovering the overdue payments essential to sustain operations without jeopardizing patient trust.
Today, MDS is redefining debt collection with a distinct combination of proprietary AI technology, tailored workflows, and a compassionate approach. This innovative strategy helps hospitals thrive financially, setting a new standard for empathetic and effective revenue recovery and proving that care and performance can go hand in hand.
“We handle every patient interaction with courtesy and professionalism, helping hospitals preserve trust while achieving their financial goals,” says Cheryl Spanier, Vice President.
“The heart of MDS’s success is its cutting-edge, in-house technology, with a proprietary software system that offers exceptional flexibility to integrate seamlessly with all hospital patient accounting systems,” commented Rick Masterson, President. Since 95 percent of its system is developed internally, the company holds complete control, enabling its developers to deliver customized solutions crafted for each healthcare provider. This flexibility allows it to address even the most complex debt portfolios with precision and efficiency.
Central to this technology is an advanced AI system that optimizes debt collection by dynamically adjusting in real-time to predict payment behavior. Leveraging these insights, MDS improves collection rates and empowers healthcare providers to identify trends, uncover missed opportunities, and streamline operations for long-term success.
The company implements these solutions in just six to eight weeks—nearly half the time of many competitors—enabling faster revenue recovery by minimizing delays in financial operations.
At MDS, debt collection is not just about leveraging technology but about people. MDS recognizes that every hospital and patient have distinct needs and avoids a ‘one-size-fits-all’ approach to debt recovery. New accounts are provided with early-out services, while accounts that have remained unpaid for long periods are managed through bad debt services to recover revenue from even the most challenging portfolios. Before contacting patients, recovery specialists carefully verify and resolve insurance issues, ensuring that missed claims and billing errors are rectified. This clear-cut process eliminates errors, reduces patient stress, and protects hospitals’ reputations. The company also prioritizes educating patients, explaining balances, and offering flexible payment options. It effectively bridges knowledge gaps and communicates with empathy, fostering goodwill while strengthening trust between hospitals and their communities.
“We handle every patient interaction with courtesy and professionalism, helping hospitals preserve trust while achieving their financial goals.“
MDS places a strong emphasis on security throughout the debt collection process to protect patient data in today’s highly vulnerable environment. Following a zero-trust principle, the company conducts regular risk assessments, encrypts data both at rest and in transit, and provides bi-annual training for employees to ensure the safety of sensitive patient information. As a SOC 2 Type II and PCI-compliant organization, MDS adheres to the highest data privacy and security standards, providing healthcare providers with peace of mind that their patients’ data is well protected.
The company’s excellent results are a testament to its world-class debt recovery approach. In one collaboration with a health system in Georgia, MDS was tasked with recovering overdue accounts that had been unpaid for years. Within one year, the company recovered over $1.2 million from accounts over 1,000 days old. In phase two, an additional $2.6 million was collected from accounts 650 days overdue. As the partnership grew, the health system entrusted MDS with more accounts, with the company ultimately recovering over $35 million. These outcomes demonstrate MDS’ ability to tackle even the most challenging portfolios, providing financial relief to hospitals while preserving patient trust.
Today, MDS is more than just a medical debt collection agency—it is a trusted partner reimagining how hospitals approach revenue recovery. The company’s technology, exceptional client services, and outstanding performance ensure that debt recovery never comes at the expense of relationships.