Many times an individual who has been injured in an accident and it is the fault of another person does not have health insurance to pay for their medical expenses. These individuals typically consult an attorney and a personal injury lawsuit is filed.  Unfortunately, these cases take a long time to settle, yet care must be given to the victim, sometimes on an ongoing basis.

  So how does an individual get the care he needs if health insurance isn't available to pay for it?  Some medical professionals will treat a patient on a medical lien basis. A medical lien can extend the amount of time allowed for payment of medical bills incurred due to an accident.

A medical lien is a written agreement between the patient and the doctor stating that the cost of the care will be paid for once the case is over.  An attorney is usually part of the agreement, as he acts in a fiduciary capacity to insure the funds will be paid to the practitioner when the case is resolved.   The requirement to pay the amount due to the medical provider isn't contingent upon a successful conclusion to the personal injury lawsuit, as is often the case with lawyers.

Although many pain management groups, imaging centers, orthopedic surgeons and other healthcare providers routinely perform services on a medical lien basis, many more are leery of doing so because of the length of time it takes to get paid.  These types of cases can sometimes take years to settle. Since cash flow is a major issue among medical providers, it can be difficult to accept the case even if the prospect of ultimately receiving payment is likely.

Accelerating cash flow with advances on medical liens

Because of the drag on working capital, many providers turn away personal injury victims despite their best intentions.   But now there is a funding mechanism which frees up cash to the provider by making advances on medical liens.  Called medical lien funding, physician groups, clinics, and hospitals no longer have to turn away patients for financial reasons.  Many of these programs offer the advances without recourse, so even if the patient loses his claim, the provider won't have to pay back the money that was advanced.

There is no set amount or percentage that will be advanced to the provider, as each case is analyzed at the outset.  The funding source weighs such variables as the total amount of care given, the likelihood of ongoing services, the length of time it might take to settle, and the strength of the case to develop a model for funding.  In many cases, the medical lien funding company will buy a portfolio of cases that the medical provider has on hand.  This service can free up literally hundreds of thousands of dollars that can be used for any purpose the practitioner desires.  

Simple requirements for medical lien funding:

1. Patient must be represented by an attorney in a present ongoing claim or lawsuit
   
2. Healthcare needs are a direct result of injuries sustained in an accident, in which liability is clear and the defendant's insurance is verified.
3. The attorney of record must agree to acknowledge a lien in the amount of the medical bill.
   

Medical lien funding is a relatively new form of financing, but is gaining in popularity.  Not only does it relieve the financial burden of the medical professional, it also gives victims of personal injury cases a better chance of getting the care they need.

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