To Outsource or Not? Deciding Which Liens Require Expert Help

For personal injury firms, lien resolution is one of the most time-consuming and risk-heavy aspects of personal injury practice. Every lien has the potential to cut into your client’s net recovery and expose your firm to liability if mistakes are made. The challenge? Not every lien is created equal. Some demand specialized expertise, while others are more efficiently handled in-house.

Knowing which liens to outsource, and which to resolve internally, is essential to protecting both your clients and your practice.

Liens That Should Be Outsourced

Certain liens are simply too complex, too time-intensive, or too risky for most law firms to manage effectively on their own. These include:

• Medicare Conditional Payments – Governed by strict timelines and regulatory processes, with penalties for missteps.
• Medicare Advantage (Part C) Liens – Often enforced by aggressive recovery contractors with deep resources who seek double damages if you fail to repay.
• Medicaid Liens – Highly state-specific, requiring expertise in varying third-party liability statutes.
• ERISA Plan Liens – Backed by federal preemption and difficult plan language, often favoring reimbursement.
• FEHBA & Military Plan Liens – Complex federal programs with unique recovery rights.
• Private Health Insurance & Hospital/Provider Liens – Frequently involve aggressive billing practices and balance billing disputes.

These liens are best handled by professionals who negotiate them daily. Outsourcing here means fewer errors, better results, and more time for your firm to focus on trial work.

Liens Best Kept In-House

Not every lien type justifies outsourcing. Some are more straightforward or are better managed locally:

• Small Liens ($2,000 or less) – Costs of outsourcing may outweigh potential savings.
• Local Provider Liens – Especially when your firm has established relationships with the provider.
• Workers’ Compensation Liens – Governed by state-specific statutes, often better handled locally.
• Medicaid Estate Recovery Liens – State-driven with unique procedural requirements.
• Child Support Liens – Typically statutory and straightforward in enforcement.
• Pre-Settlement Funding Liens – Governed by contract law, often requiring simple verification.

These liens are usually not complex enough to require outside expertise and can be resolved more cost-effectively by your team.

Why This Decision Matters

The decision to outsource isn’t just about convenience, it’s about strategy. Making a mistake with a Medicare or ERISA lien can expose a firm to government enforcement or malpractice claims. Overpaying a hospital lien can reduce your client’s recovery and erode trust. On the other hand, outsourcing small, straightforward liens can create inefficiencies and unnecessary costs.

Striking the right balance allows your firm to:

• Maximize client recovery by ensuring complex liens are aggressively negotiated.
• Reduce liability by leaving high-risk liens to experts.
• Improve efficiency by handling routine liens internally.

Final Thought

Not all liens are created equal and not all should be outsourced. The key is knowing where your firm’s expertise ends and where outside specialists can add value. By strategically deciding which liens to keep in-house and which to outsource, trial lawyers can protect client recoveries, reduce liability, and run a more efficient practice.

At Synergy, we know which battles are worth fighting and how to win them. For the liens that carry the most risk and complexity, our team brings unmatched expertise to the table.