Medical Liens - Healthcare & Law's Proverbial Catch 22
Medical Liens – Healthcare & Law’s Proverbial Catch 22
While meeting financial demands may be nothing new for healthcare facilities, for today’s medical providers a legal climate exists that has been described as an ‘economic gauntlet. Just keeping the lights on for some healthcare facilities is an issue facing far too many healthcare providers. How does this issue affect you? Let us explore this question.
Nationwide medical care providers deal with tough issues daily, in part such issues range from; rising operational costs, State and Federal funding cut backs, reduced corporate donations created by a tough economy, and Federal legislation ensuring emergency medical care for all patients. Granted while such challenges are just a sample of the issues facing America’s medical providers, make no mistake, these issues alone are reason enough for a “fiscal juggling act” providers face as demands increase while capital is decreasing.
For the federally subsidized medical institution, each provider is compelled by Federal statute to provide emergency medical treatment to all patients, irregardless of the patient’s ability to pay. To date; the financial impact such regulation has on medical providers has been defined by recent statistics that show over 50% of all emergency patients admitted annually have no proof of insurance at the time of admission. So what’s the correlation? Patients who receive emergency medical care benefit from the current legislation, as each receives medical treatment without a guarantee of financial responsible for such treatment. For medical providers the losses associated with patient care is absorbed as taxable deductions as well as passed on as increased healthcare costs to insured patients. Thus insured or not this situation affects us all.
For the healthcare providers who are profitable, a “taxable write ” for uncollected patient accounts provides an advantage, but for medical provider whose write offs exceed revenue, there’s a real paradox. For providers to meet fiscal demands while not generating sufficient capital to meet overhead, and yet expected to provide quality care, well is too much being asked? Not if you’re a patient who’s standard of care falls below that guaranteed by national standards.
For the profitable medical facility write offs provide a slight advantage, but the reality is a “business as usual” approach to healthcare can not continue as at current because the facts are; a day of reckoning in on the horizon for us all. For medical facility executives to keep the books balanced money must be available to meet financial demands and absorbing losses doesn’t meet the demands incurred by wages, salaries, supplies, utilities, equipment, bank notes and the like. And while you’re calculating the hundreds of millions in expenses just for these categories, add to the equation the legal costs of collections for unpaid uninsured accounts. Now as you wear out your calculator, are you beginning to understand the economic crunch medical facilities face when treating the uninsured and ending up on the short end of the “financial stick”?
Granted while most U.S. consumers find themselves shedding no tears for multi-billion dollar healthcare facilities, you may find yourself feeling differently the next time you’re in need of emergency medical care and none is available because, the once prosperous medical facility is closed due to the economic reasons. Something to think about wouldn’t you agree? Are there other options verses the standard way of doing business? Absolutely. Now let’s explore uninsured patients and the financial solution medical providers have available.
The “Solution”…the “Medical Lien”
The medical lien is a legal security provided to a medical provider when a patient later becomes a plaintiff in a legal case. In such a situation if settlement occurs, medical providers are compensated as the attorney of record compensates the provider out of the insurance collection proceeds. However, as financially sound as a medical lien appears to be, in a real world application, untold losses occur each year from the use of the medical lien.
While medical liens are a nationally used legal tool, for the millions of patients treated annually under this devise the facts are, all too often a medical lien leaves the providers who rely on them with the “short end of the financial stick”. Revenues the medical lien are designed to generate instead create liability for the medical facility, and thus the results are, beyond emergency care, some medical providers decline patients or at best limit the amount of patients they accept whose care is secured by the medical lien.
For the patient who becomes a plaintiff, the injured more often than not need ongoing medical care in order to achieve maximum medical recovery. “MMR” is the sought after goal for the attorney in order to achieve settlement, satisfy the medical lien providers, be compensated themselves and the patient-plaintiff.
As an illustrative example when an auto accident occurs and the uninsured injured receive emergency medical care. In such instances the patient-plaintiff needs ongoing medical treatment in order to ultimately achieve mmr which ultimately correlates to an insurance settlement. This is where for the medical provider, the patient-plaintiff, and their attorney the proverbial “catch 22” begins.
For medical providers the paradox is such must maintain positive cash flow in order to provide services. Because medical liens do not provide guaranteed compensation a growing number of medical providers refuse to provide ongoing medical care under the auspices of the medical lien. For other medical providers who limit the services provided or the amount of patients accepted whose file is secured by a medical lien, are forced to do so because of the lack of guaranteed compensation combined with the shear length of time involved in achieving compensation.
For the patient-plaintiff this paradox is critical as financial pressures and “pennies on the dollar” insurance settlement offers leave the injured with no-win choices; accepting an offer for settlement before achieving mmr, or searching for medical providers who accept medical lien patients, which in many instances takes months to receive treatment and delays a possible settlement even farther.
For the contingent attorneys in such cases the paradox occurs as their compensation is adversely affected by the amount of settlement achieved when the patient-plaintiff accepts an insurance offer without achieving mmr. Ultimately the values of the injuries sustained are not compensated for and the value of the case is not achieved.
Why then do medical providers decline or limit their care of medical lien patients? Let’s look briefly at what occurs for the medical provider:
Fact 1 Medical Liens Provide No Guarantee of Payment: For medical providers medical liens provide no guarantee of financial security if the pending litigation case is lost, period.
Fact 2 Medical Liens Take Years to Provide Compensation: Medical providers wait years for resolution as each has no leverage to enforce an “at fault” insurance carrier provide prompt payment for cases they must assume liability for.
Fact 3 Medical Liens Result In Reduced Payments: Medical providers under a medical lien are negotiated with to reduce the accounts payable after absorbing the costs of care while waiting years for settlement.
Fact 4 Vexatious Delays: Vexatious insurance companies control settlement revenue which allows the insurance company time to continue to earn interest on settlement monies in their possession while the medical provider looses revenue to interest.
Fact 5 Medical Facilities Face Loose-Loose Business Decisions: Medical facilities are forced to make “business decisions” everyday regarding absorbing losses for unsuccessfully litigated cases or spending more resources pursuing patient assets with still no guarantee of recovery.
Thus from both a financial and administrative perspective the Medical Lien Letter of Protection makes “keeping the lights on quite challenging as this legal instrument has proven after decades of use to not be the most effective solution for fiscal medical management.
Is There a More Effective Solution?
The answer is yes. A long past due financial solution has been developed as an innovative approach to fiscal medical management and has been recently launched by a professional financial consulting firm, 1st Choice Funding. As financial guru’s, 1st Choice Funding offers an amazing fiscal solution for medical providers, patients-plaintiff’s and their attorneys. This innovative financial solution has been appropriately called “No Risk…No Delay…Payment Today” Medical Lien Portfolio Funding.
As financial experts with a cutting edge solution oriented philosophy, 1st Choice Funding provides a fresh approach, an “outside the box” perspective to the medical-legal patient-plaintiff dilemma. By taking an objective approach to medical liens and the inherent issues they create, 1st Choice Funding provides a “No Risk” financial system that removes 100% of the risk for medical providers which will change the way medicine views the use of medical liens. How is such possible? Simply put: because 1st Choice Funding has unlimited investor resources which when utilized provide a guaranteed cash infusion to the medical provider who sells the medical lien portfolio which converts uncollected patient accounts into a guaranteed cash avalanche.
With “No Risk” Medical Lien Funding medical lien patient files are then converted from “potential risk-to-capital” in days. And with this programs implementation, healthcare facilities are taken out of the business of law and kept in the business of healthcare. A sound financial option indeed. With “No Risk” Medical Lien Portfolio funding, medical facilities who utilize this program comply with Federal guidelines for uninsured patient services while not being left with financial consequences for doing such. The facts are for unpaid medical lien accounts, medical providers who utilize “No Risk” capital receive:
Capital Today Instead of Capital Delay
Capital Today Instead of Capital Outlay
Capital Today Instead of More Capital Pay “No Risk” Medical Lien Portfolio Funding is just that simple. With this unique financial tool medical providers receive an unheard of ability to increase patient volume and revenue without consequence. For the first time in medical history, healthcare is being offered the most effective “financial bridge” designed to bring Government, Finance, Law, Medicine and Patient Care together effectively and simultaneously. “No Risk” Medical Lien Portfolio Funding is good for medical providers, for patient-plaintiffs, and for their attorneys. “No Risk” Medical Lien Portfolio Funding is a savvy financial solution and is a 100% winner for everyone involved.
Unlike health insurance carriers or government agencies whose red tape and never ending delays cost medical provider’s more in fiscal resources waiting for compensation, 1st Choice Funding’s investor capital is eager to provide the financial remedy without delay. For a further examination of 1st Choice Funding’s “No Risk” Medical Lien Portfolio program consider these facts:
“No Risk” Medical Lien Funding Eliminates Financial Risk For Medical Providers
“No Risk” Medical Lien Funding Provides 100% Capital on Unsuccessfully Litigated Cases
“No Risk” Medical Lien Funding Eliminates Medical Lien Collection Expense
“No Risk” Medical Lien Funding Provides a Positive Environment Improving Patient Relations
“No Risk” Medical Lien Funding Provides Cash Infusion from Lien Portfolio Sale
“No Risk” Medical Lien Funding Provides Capital When Services Are Rendered
“No Risk” Medical Lien Funding provides tomorrow’s effective financial solution….Today!
Kari E. Gray is an entrepreneur who successfully has over the last 22 years launched and operated 3 corporations whose revenues collectively have generated 8 figures. Today as CEO of 1st Choice Funding located at [http://1stchoicefunding.com] “Because money doesn’t come with instructions” Kari E. Gray is committed to assisting clients find, manage and protect their capital.
While utilizing a “boot strap” financial philosophy Kari has achieved incredible successes. With over 22 years of business and financial management under her belt, Kari E. Gray is an expert in all areas of business operations and financial management and brings to the table an “outside the box” refreshing approach to finding financial solutions.