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The option of medical lien is put in place for those people that need immediate health care as they await the outcome of their personal injury trial. By working with a doctor lien, you agree that the payment will be made after the treatment and they will remain postponed until the trial is concluded. To be assured that the payments will be made, these health liens are common against third party injuries because the patient is the no-fault victim. They include injuries that are sustained in a car accident, product liability suit, slip and fall accidents among others.
Despite the dignified intentions behind the establishment of the medical lien agreement, there are some factors that have driven most doctors and hospitals unwilling to consider their use. The reason behind this is the length of time between the treatment and when the payments will be made. When we come to matters concerning legal proceedings in a courtroom, time is not a valued factor. Some of the proceedings can take years before an eventual decision is reached. During this period of the case, most doctors are forced to continue with their operations without payments. The hospitals are in no position to force the payments until the matter is resolved before the court. The financial interference of the delayed payment is more than most physicians are willing to take. Most of the hospitals that were initially accepting the medical liens and later declined them came to notice of the grave effect that they can have on their operational costs and balance.
Despite their noble intentions, individual sometimes fail to uphold their end on the bargain failing to offer guarantee. This is very common among individuals that end up losing their personal injury cases. Unlike the unforeseen agreement for the event between the attorney and the client where the attorney loses his fee in the eventuality of a loss, there is no such agreement that exist in the writs of alien. The patient will be forced to pay their own fee after they lose the case before the court. This does not occur all the time.
Once the case has been won, the payment should be made immediately in an ideal situation. However, most insurance companies will tend to delay the payments of the fee due to some procedural clauses. The doctors will still be forced to work due to the pending payments and it is the insurance companies that benefit from the accumulated interests on the settlement money which they are still holding. The doctors are left frustrated and this is the reason as to why they will no longer accept another medical lien in the future.
The only effective solution to the problem is selling the medical lien to medical lien funding company. The company will serve as a mediator between the patient and the clinic providing the needed funds by the hospital as they wait for the case to be settled. The funding company will go ahead and secure the agreed payments of an alien from the insurance company that is responsible for providing the settlement.