There is a lot of confusion and misinformation surrounding medical liens, so we’re here to set the record straight. Keep reading to learn what medical liens are, as well as whether you should seek out medical liens. This article is useful for doctors and patients, so read on and discover the pros and cons of using medical liens.
What Are Medical Liens?
A medical lien is like a lien on a house, but in the medical world. Simply put, a medical lien is a demand for medical services to be repaid. Sometimes, when a patient comes into a hospital after an accident, they have neither insurance nor cash to pay for medical services. Instead of turning them away, the hospital can issue a medical lien against their court settlement.
If and when that patient wins settlement money, the hospital is entitled to reclaim the cost of their services. Even though that sounds simple, there are benefits and drawbacks to medical liens that you must consider as a doctor and as a patient.
Pro: Doctors Can Bill at Customary Rates
Most of the time, when a doctor works with a patient who can’t afford to pay their medical bills, they’ll find workarounds to avoid charging the full rates. This means that the doctor and hospital still gets paid, but the patient doesn’t need to take out a second mortgage on their home to do so.
Because medical liens come out of settlement money, doctors and hospitals can bill at customary rates and make more money than they would if they reduced rates.
Con: Financial Risk for Doctors and Hospitals
Just because you bill at customary rates doesn’t mean the patient will win their lawsuit. If the patient doesn’t win the suit, there’s no guarantee the doctor will be paid for their services. However, companies like Apogee Capital Partners can help with medical lien financing to reduce risk for all parties.
Now that you know the pros and cons of using medical liens, contact Apogee Capital Partners for help financing your medical liens.