Many in the industry are leery about taking on personal injury cases because they are worried about not getting paid for a long time or not at all. This program mitigates these concerns because funds are advanced at the time of care and there is no recourse to the provider if there is no settlement or positive case outcome.
Springfield, MO (PRWEB) March 4, 2009
Kent Harlan, CPA and President of Ozarks Capital Funding, LLC, has announced the launch of a new financing plan to fund medical liens for health care providers. The plan gives much-needed cash flow to practitioners who otherwise wouldn't recoup those funds until well into the future.
Ozarks Capital Funding, LLC, a broker of financial services for the medical industry, announced today that they have launched a new program to help medical providers acquire working capital through advances on medical liens and letters of protection. When an uninsured person is involved in an auto or other type of accident and files a lawsuit against the party at fault, the case may take months or even years to settle. In the meantime, care is often administered on an ongoing basis and the practitioner is not getting paid. To ensure they will recoup the amount due upon settlement, the provider files a medical lien.
According to Harlan, most health care professionals don't know about this type of funding. "Many in the industry are leery about taking on personal injury cases because they are worried about not getting paid for a long time or not at all. This program mitigates these concerns because funds are advanced at the time of care and there is no recourse to the provider if there is no settlement or positive case outcome."
The program allows for an individual case to be funded or an entire portfolio of cases. At the inception of the relationship, the inventory of cases that haven't been settled can usually be funded. Minimum amount of gross billings must be $100,000 to qualify. The cash advances can be received by the provider as early as 7 days from the date of service.
"We already arrange traditional medical invoice factoring services for billings related to third-party payers, so we felt this would be a nice addition," said Harlan. "With the cash flow of many health care organizations in short supply, this program offers a shot in the arm. Imaging centers, pain management groups, surgical hospitals, and MRI labs are just some of the types of providers that can benefit from this innovative financing mechanism".
The medical lien funding program has few requirements:
1. The patient must be represented by an attorney in a present ongoing claim or lawsuit
2. Health care 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.
The program is relatively easy to set up. The provider first fills out an application and attaches other information about the practice and the cases to be funded. If it is determined that the practice or hospital is a viable candidate, a Letter of Intent is offered which specifies the proposed terms and conditions. If the provider agrees with the LOI, the next step is a due diligence review. Assuming no material problems are disclosed, a contract is executed and funding begins.