Physician Lien Financing And Funding
One of the greatest risks to the bottom line of a physician’s office is the acceptance of patients who come seeking treatment with an LOP, or “letter of protection” from a legal entity or financing firm. These types of agreements are generally made in connection to a personal injury case that a legal firm is handling on behalf of a patient who has been involved in an automobile accident or who has been injured through another party’s negligence. Due to the fact that these types of cases can drag on for months and sometimes even years through the court system, the dilemma is faced of how to get the necessary and crucial treatments that will both relieve pain and suffering and also provide a basis for determining a settlement immediately while asking the attending physician to not be paid for service until after the case settles, if at all. Many physicians feel that the risks associated with accepting LOP patients is too great to undertake, and will regularly turn them down as a result. The loss of potential revenue to the medical facility is a bitter pill to swallow, but the minimization of the associated risks makes it necessary.
For physicians who do accept LOP and PI patients, the minimization of risk still presents an important consideration that must be addressed. Statistically, the longer that a case drags on the less chance that the physician will be compensated, and aging accounts do no good to cover the expenses associated with running the facility itself. This is where companies like Med Care Solutions step in to provide “physician lien financing” programs designed to minimize the risks that are being absorbed by physicians involved with the treatments of these types of patients. Through the purchase of the rights to collection of the debt owed to the physician, Med Care Solutions completely eliminates default risk to the office by paying for the account immediately. There is no associated risk to the office from that point, as default risk is absorbed by Med Care Solutions without further consideration.
Physician lien financing programs are unique in that the purchase of the debt owed to the physician allows them to not only generate immediate cash flow, but additionally consider the program as an income generator. The physician has the ability to accept the PI patients that were once considered too much a risk factor systematically, producing a revenue stream that was not available previous. With the involvement of the financing house that is willing to take on risky debt and relieve the collections department of the burdens of aging accounts, the physician can consider treatments as immediate income generators instead of hoping that the case will settle favorably. The alternative to this pro-active solution to medical liens is the hiring of a collection agency, which provides no guarantees of success and will generally take a large portion of the payments that are collected as commission. These types of strategies rely on hopes of success instead of guarantees of revenue, and are therefore far inferior to the outright sale of the LOP account. Contact Med Care Solutions representatives today to learn more about the physician lien financing programs they offer.