What process is typically used when a provider cannot collect on a debt?

When a provider is unable to collect on a debt, sending the account to collections is often the most formal step taken. This process involves engaging a third-party collections agency to recover the owed amount. Collections agencies specialize in debt recovery and have strategies in place to pursue outstanding debts while complying with legal and regulatory requirements.

Outsourcing refers to handing over certain business operations or services to another company, which can include hiring a third-party organization to manage the revenue cycle. While outsourcing can involve debt collection processes, it doesn't specifically address the immediate action taken regarding an uncollectible debt.

In comparing these processes, sending the debt to collections is a clear method used by providers. It reflects the proper course of action when internal attempts to collect have failed and the debt has become a significant issue. The other options, while potentially part of broader revenue cycle management strategies, do not directly refer to the specific action normally taken when collection efforts are unsuccessful.