Objectives

The primary objective of this tender is to appoint a service provider to deliver debt collection services for outstanding debts owed to the Western Cape Department of Health and Wellness. The service aims to recover debts such as patient fees, personnel, and bursary-related debts across all institutions under the department's control. The contract duration is five years, with the successful bidder responsible for taking specific recovery steps, electronically processing debt data, and providing regular reports on recovery efforts.

Scope

The scope encompasses:

• Collection of outstanding debts, including patient fees and staff-related debts, for all relevant institutions within the department.
• Electronic handover of debts weekly, with amounts recovered paid monthly to the department.
• Management of debts across multiple hospitals and health facilities listed in Annexure D.
• Employing own debt collection staff and engaging tracing agents or attorneys as needed.
• Providing detailed reports on debt recovery, unsuccessful cases, and reconciliation on a monthly basis.
• Supporting debt tracing, updating debtor information, and handling communication via SMS and email.
• Maintaining confidentiality and compliance with legal and ethical standards throughout the process.

Technical Requirements

The technical specifications include:

• Capability to electronically process weekly debt handover data and provide monthly payment details.
• Support for voice-mandated debit orders, including NAEDO processing.
• Access to credit bureau data and the ability to update debtor information such as ID numbers and addresses.
• Provision of real-time online verification and electronic progress reports on all cases.
• Implementation of a call center with sufficient staff to support collection strategies.
• Ability to produce reconciliation reports (Annexure B: Appendix 4) and handle unsuccessful recovery cases.
• Compliance with data confidentiality, privacy laws, and the Department’s data handling protocols.
• Provision of proof of membership to relevant debt collection bodies (e.g., Council of Debt Collectors, ADRA).

Skills and Competency Requirements

The bidder must demonstrate:

• Experience in debt collection, particularly within the healthcare or public sector environment.
• Capability to follow up on all debts regardless of debtor location or debt age.
• Proficiency in electronic debt management systems, including processing of debit orders and updating debtor data.
• Ability to provide detailed, verifiable reports and reconciliation documentation monthly.
• Established office in the Western Cape for managing the service and conducting inspections.
• Qualified staff, including trained debt collection agents and call center personnel.
• Membership and accreditation with recognized debt collection bodies (e.g., SANAS accreditation, Debt Collectors Act registration).
• Adherence to ethical standards, confidentiality, and legal compliance in all debt recovery activities.