Are LOPs going way?
Kyle Kinberger, National Sales Manager for HMR Funding
With the rise in effectiveness from a select group of full service Medical Funding companies, Letters of Protection (LOPs) could conceivably become a relic of the past. From a medical provider’s standpoint, the risk involved with accepting a LOP for third party liability medical services is often just too risky. Why accept the risk of non-payment when working with a medical funding company, like HMR Funding, can guarantee prompt fair payment and free the medical provider from the stress of having to wait months, if not years, for the underlying legal case to close?
A quality full service medical funding company, like HMR Funding, is often a much better option for medical providers since we remove the risk of non-payment. HMR Funding will review the case before any services are provided, and can then offer to purchase the post medical service bills from the medical provider at an agreed upon rate, therefore providing the doctor immediate payment with no risk.
At HMR Funding we research and underwrite the underlying legal case at no cost to the medical provider. If we elect NOT to purchase the medical receivables due to inherent risks with the legal case, then it may not be a case the medical provider would want to accept. Also, the medical provider does not have to concern themselves with the ultimate outcome of the legal case. If the underlying legal case is ultimately won, lost or is settled outside of a court of law, the medical provider has been paid for their services – often many months or years earlier.
If the medical provider elects to accept a Letter of Protection from the patient’s personal injury attorney, the medical provider is at the mercy of the legal system for payment. It could take months or years for the legal case to be resolved, and even upon resolution there is no guarantee the patient will be able to pay the invoice amount due to the medical provider.
In the real world, medical providers are often asked to accept a payment for much less than they billed, usually due to an unsatisfactory monetary reward to the plaintiff/patient. And unfortunately in those situations when the underlying legal case results in a defense verdict, the medical provider then has the near impossible task of trying to collect payment directly from the patient who will often not be able to pay, resulting in the medical provider having to write off their invoice as a self-pay bad debt.
Forming a relationship with HMR Funding allows medical providers to accept personal injury patients with no risk, knowing they will be paid promptly by HMR Funding immediately upon medical services being rendered. This allows the medical provider to concentrate on treating patients and growing their practice instead of worrying about inherent challenges associated with collecting on their aging accounts receivable balances on personal injury cases.
Contact us now if you would rather work with us than take the risk of accepting letters of protection (LOP) or medical liens.
About the author:
Kyle Kinberger is the National Sales Manager of HMR Funding, LLC a plaintiff-oriented medical funding company located in Richmond, Virginia. HMR Funding supports personal injury attorneys whose clients are either uninsured, under-insured or have been denied coverage.
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