First Financial Investment Fund noted it is using the predictive power of customer payment data to determine the expected value of medical portfolios they are identifying for purchase.
Once the portfolios are purchased, the company will then use the statistical modeling to help determine the accounts that are most likely to pay and will prioritise collection segmentations and treatments.
First Financial Group of Companies chief investment officer Matthew Maloney said they have selected SunGard’s AvantGard Predictive Metrics to value its medical debt portfolios and benchmark against its proprietary cash-flow model predictions.
"Once we purchase a medical receivables portfolio, we will use predictive models to evaluate payment behavior in order to determine the propensity of accounts in the portfolios to pay," added Maloney.
"By utilising a custom model application that blends SunGard data with our own proprietary models, we will be able to effectively prioritise our segmentation strategies and collections treatments to increase our liquidations."
The models do not require the use of credit bureau data which helps organisations to comply with specific regulations.
First Financial Investment Fund is the receivables purchasing and finance division of First Financial Asset Management.
