Healthcare Facilities Face the Financial Gauntlet When Using Medical Liens

Healthcare Facilities in today's legal climate facefacilities who have significant overhead
the gauntlet of problems including but not limitedthemselves have absolutely no leverage to
to the following:enforce the "at fault insurance carrier" prompt
Rising operational costspayment for the services rendered.
State and Federal cut backsWhen any of the facts presented are
Federal laws ensuring emergency medical care forencountered by a medical facility, and most face
all patientsall of such facts regularly, a medical provider must
Admittedly these challenges are just the beginningface tough business decisions: either absorb the
of issues facing America's hospitals who have alllosses for treatment or spend more resources
too many obstacles to negotiate. It's no wonderpursuing patient assets and try to justify such
then hospital administrators describe the fiscalwith recovery. Now while both options provide
juggling act they must do to survive this gauntletlimited benefits neither option actually provides a
of financial challenges as "extremely difficult atreal solution. Thus, from both a financial and
best".administrative perspective the Medical Lien Letter
The facts are clear, Federally funded medicalof Protection makes "keeping the lights on a
institutions are under statute to providechallenge" for a medical facility who needs
treatment to all emergency patients, and to daterevenue. The LLOP's inherent weaknesses have
statistics show more than 50% of theproven over and over again this instrument is not
emergency patients admitted annually have nothe most effective solution to fiscal medical
proof of insurance at the time of admission. Whilemanagement.
emergency treatment is provided to the patientBut Is There A More Effective Solution?
the medical provider is doing such without aIt appears the answer is found with a financial
guarantee of compensation. The same medicalconsulting firm called 1st Choice Funding who's
provider later must then exhaust even moreonline presence at provides details regarding an
resources in costly collections of patient assets inLLOP solution that makes sense. The program is
hopes of achieving some type of collectioncalled "No Risk...No Wait...Payment Today" Medical
success.Lien Buyout and it is through this approach that
For patients who have a litigation claim, i.e. an auto1st Choice Funding takes the risk out of the LLOP
accident, the medical providers services are to befor the medical provider. How so? Because
protected by the Lien or Letter of Protection orthrough this innovative program the company
"LLOP" which is filed with the attorney of recordutilizes investor capital to purchase a medical
and acts as security to be paid at the time ofproviders entire medical portfolio which then
settlement for unpaid medical services.positions a medical facility with the option of either
Despite what may appear to be a financial solutionselling the entire portfolio or use sell in conjunction
for the medical care provider, the LLOP insteadwith continuing to treat LLOP cases and to then
leaves medical facilities "with the short end of thesell all future LLOP files as well. Implementing this
financial stick" as all too often the revenues theopportunity means a medical provider may now
LLOP are supposed to generate instead are onlyconvert uncollected patient accounts into a
an unreliable instrument and not a solution. Let'sveritable "cash cow" as a medical facility becomes
briefly examine the inherent problems with theinfused with millions of dollars at the conversion of
LLOP and the challenges medical facilities facea medical lien portfolio into resource which is no
when utilizing this legal instrument:longer a potential liability but is instead a
Fact 1: The first issue medical facilities face whenguaranteed source of revenue.
using the "LLOP" is the LLOP provides absolutelyFor medical facilities who utilize the "No Risk"
no guarantee of financial resolution when theprogram, each facility continues to comply with
pending litigation case is lost.State and Federal guidelines for uninsured patient
Fact 2: A second problem arises when medicalservices while at the same time increasing
providers who utilize the LLOP have no way ofrevenue through ongoing medical care for patients
predicting when insurance proceeds will beand increasing occupancy rates. Without a doubt
received for an accounts payable as somefor the first time in medical history are healthcare
litigation cases take years to resolve.facilities now offered the most effective "Financial
Fact 3: Yet another issue arises when medicalBridge" to fiscal management ever developed and
providers are forced to protect collection rightsunlike health insurance carriers and government
and create negative public relations when pursuingagencies, whose red tape and vexatious delays
patient assets. A negative image is not whatcost medical providers more in financial resources
medical providers want to have as a reputation inthan is needed, 1st Choice Funding is eager to
the communities they serve.provide capital to medical facilities through the
Fact 4: Then there's the issue that when medicalLLOP buyout program.