Medical Lien Management
When seeking medical care after an accident, many people are surprised to learn that in certain situations, healthcare providers can assert a claim against the personal injury settlement. This allows payment for services to come directly from the funds from the settlement, and not out-of-pocket or from insurance. Colorado Injury Center is dedicated to helping our patients, and we work on a lien basis in many cases to ensure no direct to you.
We are very proficient in working with insurance to ensure that any claims are handled smoothly, and if you are represented by an attorney, we will work with them to make absolute certain that your case is handled legally and medically in the best possible manner.
Some medical providers may ask you to sign a lien letter, stating that a lien has been submitted against your settlement to pay for services. These liens must must follow strict protocols in order to be valid.
After a traumatic incident, the last thing you need to be concerned with is money. Let us alleviate that concern. In most every case, Colorado Injury Center will work on a lien, leaving you to focus on making a full recovery in the meantime.
The types of liens we accept are medical bill related. These all come out of the sum of the money from your personal injury lawsuit. Basically, a medical lien ensures that we, as a medical provider, are compensated for our services. While most often, the patient cannot cover the full cost incurred by an accident, a personal injury suit can yield varying sums of cash for the victim to use to seek aid. A medical lien is paid directly from that sum.
One solution for medical professionals attempting to get paid more quickly for medical services rendered is to sell your Lien and Letter of Protection receivables (LOP). The first step in understanding this option is to know what a Lien and LOP is:
A lien is a document which states you will be paid from the proceeds of your patient’s personal injury case. The lien is signed by your patient and his/her attorney. The patient instructs the attorney to pay for your services out of the proceeds of the patient’s personal injury case settlement or aware. The attorney signs, acknowledging instructions of his or her client and promises to repay you at the conclusion of the personal injury case. A lien is necessary in the event that there is no insurance to pay for your services.
A LOP is very similar to a lien. A LOP is a letter from the attorney requesting that you treat the patient with payment deferred until the successful resolution of the personal injury claim. Sometimes the attorney will put the amount he/she is willing to repay to you at the conclusion of the personal injury case. Therefore, you may not get paid for treatment you provide in excess of that amount.
If your office treats personal injury case patients, you likely have an existing portfolio of liens/LOPs against personal injury cases. Accepting lien/LOP cases is a necessary part of most orthopedic practices which treat personal injury accident patients. There are many benefits which include the steady inflow of patients who you would not otherwise treat and you will make money from treating.
Primary solution: The solution I focus on is to present your portfolio for analysis to a medical lien purchasing company. The medical lien purchasing company will do a review and analysis of the portfolio and present you with a purchase offer. When the sale is completed you will receive a large cash infusion and be relieved of all the risk, stress and work associated with managing and collecting fees due on outstanding liens. The benefits of selling your LOP cases are also an immediate large cash infusion, which allows you to use your money today for your benefit instead of leaving “phantom” money tied up in the letter of protection cases.
The money you hope you have in the letter of protection cases is not earning interest and is losing value against inflation every year, whereas by selling your portfolio and receiving your money today you have multiple positive options to utilize your money. This will substantially reduce employee time spent billing, following up and tracking liens and trying to collect. Once you sell your lien/LOP cases you will have no risk of lost case and not getting paid or the lawyer negotiating the lien down in two or three years when case settle. You will also gain the ability to present stronger trial testimony by being able to testify that you have no financial interest in the outcome of the trial.
Secondary solution: A sub solution is to sell individual lien/LOP cases as they occur, rather than sell then off as a part of a larger portfolio. This will significantly increase your revenues without any risk or cost. This option comes into play when you are treating a patient who has been involved in an accident where there is a pending claim for damages for the injuries sustained. When there is no insurance to pay for your medical services needed to treat injuries caused by an accident, either the treatment does not take place or you agree to perform the treatment on a lien against your patient’s personal injury case.