Government

• PR - Municipal Services Bureau to Collect for the City of Killeen
  Austin, Texas-based Gila Corporation, through its business unit, Municipal Services Bureau (MSB) has expanded its current service offerings to include the City of Killeen's debt collection. “We are proud that our credibility is constantly reinforced by winning new business and equally pleased that we can service another Texas client,” said Patrick Swanick, Chief Executive Officer of Gila Corporation.The city has contracted with MSB for Utility Collections, Community Development, EMS and Code Enforcement collections. The contract is for a period of one (1) year, with an option to renew up to two (2) additional one (1) year terms. Municipal Services Bureau (MSB) offers outsourced collections, payment processing and call center services to governmental entities nationwide. Founded in 1991, Gila Corporation is a leading provider of receivables management and business process outsourcing solutions. Headquartered in Austin, Texas, the Company offers outsourced collections, payment processing and call center services to governmental entities, financial services clients and higher education institutions nationwide. Through its strategic business units, MSB and Gila Group, Gila Corporation empowers more than 280 talented employees with advanced technology, data management tools and leading edge business practices to exceed the expectations of its clients.
• California Nears Universal Healthcare Vote
  California legislators are expected to vote before Christmas on a health care reform package that would cover most of the state’s residents, according to a spokesperson for House Speaker Fabian Nunez. “We’re working around the clock with the governor’s office and senate president’s office on reaching a compromise,” said Beth Willon. “I think it (the vote) will be sometime before Christmas.” Republican Gov. Arnold Schwarzenegger and Democrats led by Nunez have each introduced plans that would implement a universal health plan covering most of the state’s residents. Schwarzenegger, Nunez, and Senate President pro Tem Don Perata are in agreement on most of the particulars of a $14 billion plan, including a 4 percent fee on hospitals, provided that the fee is used for patient care, according to Willon and a spokesperson for the governor. “The main sticking point is finance and affordability,” said Sabrina Lockhart, Schwarzenegger’s deputy press secretary. “We’re moving closer on affordability.” The California Hospital Association has endorsed the fee proposal. State legislatures, hospitals and the ARM industry are closely watching the outcome of California’s healthcare reform efforts. Industry experts and analysts say universal healthcare in the nation’s largest state would likely speed efforts by other states, and possibly the country, to require all Americans to have coverage. Many believe that a universal plan would reduce the number of uninsured and cause the annual amount of healthcare debt to drop significantly. Negotiations among the California leaders now center on how much employers will contribute to the plan if they don’t provide coverage for their employees, both Willon and Lockhart said. Democrats proposed that employers with payrolls of $350,000 or more spend at least 6.5 percent of their payroll on employee health care expenditures. The governor’s proposal calls for a 1 percent contribution on payrolls up to $250,000 and a 3 percent contribution on payrolls between $250,000 and $1 million. It limits the fee to 5.5 percent for employers with payrolls above $1 million. “The sliding scale on employer fees is structured in such a way to protect small business,” Lockhart said, adding that past attempts at universal coverage put the entire burden on business. “He believes everyone needs to share in the cost.” Nunez has contended that employers must pay a greater share to ensure the plan is affordable.“There has to be more from them (employers), so all children can be covered and their parents,” Willon said. If an agreement is reached on the California plan structure, it’s expected to pass both the Democrat-controlled House and Senate with a simple majority vote and that Schwarzenegger would sign it. Proponents say they would take the proposal to voters in a referendum next November. If that is approved, the law would go into affect in January 2009, Willon said.
• Paradise Uses Technology to Speed Accounts to Collectors
  Officials in Hawaii unveiled a new fancy-pants electronic system last month that allows the state Judiciary Department to automatically forward traffic judgments to a collection agency on the mainland. The system has already paid dividends for the Pacific Ocean archipelago, according to a press release from the department Wednesday. In November alone, Judiciary forwarded some $6.2 million in delinquent traffic judgment accounts to Austin, Texas-based Municipal Services Bureau, a collection agency that specializes in collecting local government debt ("Hawaii Judiciary Rules MSB the One for Collections," Oct. 9). Under the old manual system, the department forwarded a total of $7.85 million in accounts to MSB over the course of two years. The new system automatically – and electronically – refers unpaid judgments to MSB using preset thresholds. For example, unpaid judgments of less than $500 are sent after 90 days, while unpaid judgments greater than $500 are sent after 180 days. Also, citizens under the age of 18 are not referred to MSB for collection. The system can also receive money directly from MSB once it is collected. Debtors must pay MSB's 21 percent fee which is tacked on to the original fine. Thomas Keller, administrative director of the courts in Hawaii, commented in the release, “We expect that the percentage of monies collected on delinquent accounts will significantly increase because once the collection agency receives this information, it will pursue persons who have chosen not to pay their fines.” That expectation appears to be coming to fruition. Last month, the state had $82,000 electronically deposited in its bank account from the $6.2 million it forwarded to MSB. Over the past two years, the state had manually received $777,160 of the $7.85 million it had farmed out to MSB. In November, state officials got to work clearing out a backlog of old cases, which explains the much higher than average total sent last month, according to the Honolulu Advertiser.
• Profile II: Linebarger Invests in Tech to Serve Clients
  Linebarger Goggan Blair & Sampson, LLP, Austin, Texas, will collect more than $1 billion in delinquent receivables this year, according to Mike Vallandingham, partner and chief marketing officer, largely thanks to automating its work processes. The firm this year is spending $25 million on technology – half of that on salaries -- for 125 technology professionals (out of 16,000 total employees). The 2007 expenditure builds on an annual technology budget that’s exceeded “tens of millions of dollars” for several years, according to Vallingdingham. The investment is intended to keep top technology talent and to ensure its technology makes the firm more efficient, said Rick Haass, chief technology officer. Linebarger uses predictive dialers, comprehensive databases, paper imaging equipment and fast systems throughout the organization to support call center agents and other staff. The automated systems enable the firm to make hundreds of thousands of phone calls, mail millions of demand letters and files tens of thousands of lawsuits and bankruptcy claims each year. The predictive dialers speed the calling process. The database helps ensure that all information regarding debtors is accurate, which is particularly important in the government collections arena because incorrect debtor information can lead to negative political implications, Vallandingham said. “To elected officials, good customer service is just as important as the collections.” All of the firm’s offices are networked together because government offices prefer to do business with businesses that hire local constituencies, Vallandingham says. The networking allows employees in one location to handle an overload of calls at another location. The imaging equipment helps Linebarger convert paper files to electronic files, making the files much easier to store, locate and deliver to proper sources. Vallandingham and Haas predict investments in self-service technology will grow across the collections ind