Workers’ Compensation Reform May Cause Substantial Loss to Medical Providers

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Physicians and other medical providers are at risk of losing a substantial amount of their outstanding bills for dates of service on or before January 1, 2010 due to SB 863’s shortened statute of limitations according to Cicero Capital, LLC.

Before the new law was passed, lien claimants had a statutory period of five years to file their lien through the Workers’ Compensation Appeals Board (WCAB). Now this statutory period will be reduced to three years effective January 1, 2013. This may mean that doctors will not receive any compensation for all dates of service provided before January 1, 2010 at the start of the new year.

In pertinent part, the new law states: “A lien claim for expenses…shall not be filed after three years from the date the services were provided, nor more than 18 months after the date the services were provided, if the services were provided on or after July 1, 2013.” SB 863 Section 4903.5(a).

“Medical providers are already being underpaid under current law,” Jonathan Roven of Cicero Capital, LCC states, “and this new law may extinguish a large portion of their outstanding bills.” Cicero Capital, LLC is a Los Angeles-based collection agency that specializes in workers’ compensation collections for medical providers.

Along with a reduced statute of limitations, liens will require an “activation fee” of $100 for liens filed before the new year, and a filing fee of $150 for liens filed after the new year. Cicero Capital urges medical providers to file liens as quickly as possible before January 1, 2013 to prevent their statute of limitations from expiring as well as additional fees.

There are additional concerns that may pose a substantial risk to medical providers after the new year as well. “Of critical importance to providers in understanding SB 863 is the new time deadline of responding to a dispute of an Explanation of Review of a bill in 90 days of its receipt,” Marlena Garland of Garland & Associates said about the bill. “If the provider fails to dispute the bill, then it is deemed to be paid in full.” Garland & Associates is a service oriented business for public relations and marketing for medical specialists.

As it stands now, Roven and Garland believe many providers are uninformed about SB 863’s stark details and bear the risk of losing substantial revenue.

Medical providers requesting assistance in collecting workers’ compensation receivables should call Jon at 323-989-DEBT (3328) and may visit for more information. Providers requesting additional representation and referrals may contact Marlena at 888-455-1600 and may also visit

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Jonathan Roven
Cicero Capital, LLC
(323) 989-DEBT (3328)

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