A common legal term that may be completely foreign to the general public is “LOP” or “Letter Of Protection,” which is a legal statement of acceptance of the responsibility of paying for the bills associated with the medical care of a specific party, and under specific conditions. Generally offered by an attorney, legal practice or medical funding group like Med-Care Solutions, a LOP assures the medical providers that are called upon to provide certain treatments, surgeries and therapies that they will be paid for their services by a third party, no matter what the outcome of the case. This assures medical providers that they will be able to provide the necessary treatments to improve the quality of the patient’s life without worry that the case will not be settled in the patient’s favor, and having to absorb the resulting potential default on payment that would most likely follow. The Letter Of Protection is a legal guarantee that the medical provider will be paid in a timely manner, thus removing the potential hesitations to providing treatments to patients who have little or no ability to pay out of pocket. The bills will be covered by the entity who provides the LOP.
In many cases where the patient has been injured as a result of the negligence of another party, either through an automobile accident or other form of action that results in injury to a person, both the insurance company associated with the “at fault” party as well as the insurance company who covers the injured person will refuse to put forth payment for treatments until the case is settled, due to the fact that a legal argument is ongoing that may result in their being found “not at fault,” and at which point they would then need to attempt to somehow collect the money that they have paid out from the other party. Because of the risks associated with fronting payments that may not end up being their responsibility, most insurance companies in these types of situations will opt to delay treatments, or attempt to promise to pay the medical provider if they are found to be at fault. By shifting the burden of collection and non-payment risk to the medical provider, in many cases a decision to not accept the patient must be made by the provider so as to protect themselves from default.
While the option to ensure complete protection from default by not accepting risky patients is always available, this removes a large potential revenue stream from the practice, and diverts those patients to competing providers who have more of a risk tolerance, or more ability to absorb the lengthy wait times for payment, if payment is made at all. Through the LOP option, providers reduce their risks associated with treatment collection as a third party has provided a guarantee that they will pay the associated bills of the patient. This gives the provider the ability to accept patients that would, in any other circumstance, be considered too risky to accept and treat. The added patients that can be gained through acceptance of Letters Of Protection provided by Med-Care Solutions can greatly benefit your practice, and the patients of your community. Contact Med-Care Solutions today to find out more about our LOP programs.