Healthcare Facilities in today’s legal climate face the gauntlet of problems including but not limited to the following:
Rising operational costs
State and Federal cut backs
Federal laws ensuring emergency medical care for all patients
Admittedly these challenges are just the beginning of issues facing America’s hospitals who have all too many obstacles to negotiate. It’s no wonder then hospital administrators describe the fiscal juggling act they must do to survive this gauntlet of financial challenges as “extremely difficult at best”.
The facts are clear, Federally funded medical institutions are under statute to provide treatment to all emergency patients, and to date statistics show more than 50% of the emergency patients admitted annually have no proof of insurance at the time of admission. While emergency treatment is provided to the patient the medical provider is doing such without a guarantee of compensation. The same medical provider later must then exhaust even more resources in costly collections of patient assets in hopes of achieving some type of collection success.
For patients who have a litigation claim, i.e. an auto accident, the medical providers services are to be protected by the Lien or Letter of Protection or “LLOP” which is filed with the attorney of record and acts as security to be paid at the time of settlement for unpaid medical services.
Despite what may appear to be a financial solution for the medical care provider, the LLOP instead leaves medical facilities “with the short end of the financial stick” as all too often the revenues the LLOP are supposed to generate instead are only an unreliable instrument and not a solution. Let’s briefly examine the inherent problems with the LLOP and the challenges medical facilities face when utilizing this legal instrument:
Fact 1: The first issue medical facilities face when using the “LLOP” is the LLOP provides absolutely no guarantee of financial resolution when the pending litigation case is lost.
Fact 2: A second problem arises when medical providers who utilize the LLOP have no way of predicting when insurance proceeds will be received for an accounts payable as some litigation cases take years to resolve.
Fact 3: Yet another issue arises when medical providers are forced to protect collection rights and create negative public relations when pursuing patient assets. A negative image is not what medical providers want to have as a reputation in the communities they serve.
Fact 4: Then there’s the issue that when medical facilities who have significant overhead themselves have absolutely no leverage to enforce the “at fault insurance carrier” prompt payment for the services rendered.
When any of the facts presented are encountered by a medical facility, and most face all of such facts regularly, a medical provider must face tough business decisions: either absorb the losses for treatment or spend more resources pursuing patient assets and try to justify such with recovery. Now while both options provide limited benefits neither option actually provides a real solution. Thus, from both a financial and administrative perspective the Medical Lien Letter of Protection makes “keeping the lights on a challenge” for a medical facility who needs revenue. The LLOP’s inherent weaknesses have proven over and over again this instrument is not the most effective solution to fiscal medical management.
But Is There A More Effective Solution?
It appears the answer is found with a financial consulting firm called 1st Choice Funding who’s online presence at [http://1stchoicefunding.com/medical.html] provides details regarding an LLOP solution that makes sense. The program is called “No Risk…No Wait…Payment Today” Medical Lien Buyout and it is through this approach that 1st Choice Funding takes the risk out of the LLOP for the medical provider. How so? Because through this innovative program the company utilizes investor capital to purchase a medical providers entire medical portfolio which then positions a medical facility with the option of either selling the entire portfolio or use sell in conjunction with continuing to treat LLOP cases and to then sell all future LLOP files as well. Implementing this opportunity means a medical provider may now convert uncollected patient accounts into a veritable “cash cow” as a medical facility becomes infused with millions of dollars at the conversion of a medical lien portfolio into resource which is no longer a potential liability but is instead a guaranteed source of revenue.
For medical facilities who utilize the “No Risk” program, each facility continues to comply with State and Federal guidelines for uninsured patient services while at the same time increasing revenue through ongoing medical care for patients and increasing occupancy rates. Without a doubt for the first time in medical history are healthcare facilities now offered the most effective “Financial Bridge” to fiscal management ever developed and unlike health insurance carriers and government agencies, whose red tape and vexatious delays cost medical providers more in financial resources than is needed, 1st Choice Funding is eager to provide capital to medical facilities through the LLOP buyout program.
Let’s Briefly Examine The Benefits of the LLOP Buyout Program:
The No Risk Program Provides A Cash Infusion from the Sale of Existing Lien Portfolios
The No Risk Program Provides Capital When Services Are Rendered For Plaintiff Care
The No Risk Program Provides Eliminates Future Risk of Collection
The No Risk Program Provides Capital On Unsuccessfully Litigated Cases
There’s No Collection Resources Required When Cases Are Resolved
The No Risk Program Eliminates All LLOP Collection & Management Expenses