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Perhaps I'm being too cynical, but accounts in collections are typically sold at about 4% value. They'd expect to get about 26k back from that debt. Perhaps the
by jmcgough 6y ago
Perhaps I'm being too cynical, but accounts in collections are typically sold at about 4% value. They'd expect to get about 26k back from that debt. Perhaps they felt the good PR was worth that much?
- DharmaPolice 6y agoHe's closed his practice so I'm not sure why he would care that much about the value of the PR? You're right that he's probably "only" written off a fraction of the headline amount but that doesn't feel like it matters much in this context.
- deleted 6y ago[deleted]
- philliphaydon 6y ago> Dr Omar Atiq closed his cancer treatment centre in Arkansas last year after nearly 30 years in business. If he closed up then good PR is worthless is it not? Also debt can be collected at a fee, or sold at a loss. He probably wanted to collect the 600k but when he got calls from the collection agency about the inability to pay he decided it wasn't worth it. That's my understanding.
- whoisjuan 6y agoI mean, you’re not wrong. But this outcome is far from covering his losses. Being charitable isn’t always a give all, take none situation. In this case is clear that there’s some positive outcome for the doctor by forgiving debts. This doctor gets some positive PR, can write off this as a loss for tax purposes and the patients are relieved from their debts. Seems like a win-win for a hopeless situation. So
- cbanek 6y agoI also wonder if it's different for tax purposes? Not sure if it's considered a loss or a donation at this point, but it's probably good to at least get it off the books if they are shutting down.