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O’MALLEY TUNSTALL, PC: CASE STUDY

How can a personal injury law firm significantly improve operational efficiency and profitability?  Through partnering with Synergy to strategically outsource lien resolution. The following case study demonstrates how.

The Challenge

Lien resolution can divert substantial resources away from a law firm’s core activities.  As an example, a five-lawyer personal injury firm who partnered with Synergy traditionally managed these tasks in-house, leading to substantial administrative burdens, inefficiency, and costly extra overhead.  This North Carolina firm resolves approximately 100 cases annually, each necessitating lien resolution tasks.  The firm found its resources heavily diverted from higher-value legal work, which underscored the need for a strategic shift.

The following data provides insight into the extent of these inefficiencies:

  • Labor Time Lost to Lien Resolution:
    • Hours by support staff:                                                    600
    • Hours by attorneys:                                                           400
    • Total hours spent on liens annually:                             1,000
  • Labor Cost Related to Lien Resolution:
    • Annual cost of staff time spent on liens:                      $29,705.00
    • Annual cost of attorney time spent on liens:              $400,000.00
    • Total annual lien resolution expenses to the firm:    $429,705.00

 

These figures highlighted inefficiencies, with a significant portion of attorney and staff time diverted from higher-value legal work.  To address these inefficiencies and the cost, the firm partnered with Synergy to outsource their lien resolution related tasks.

The Solution

To address these inefficiencies and the cost, the firm partnered with Synergy to outsource their lien resolution related tasks. 

Outsourcing lien resolution to Synergy yielded substantial benefits for the firm:

  • Time Savings: The firm reclaimed hundreds of hours previously spent on administrative tasks. This reallocation allowed attorneys and staff to focus more on legal services and client interactions instead of administrative tasks. The firm’s managing partner noted the impact:

        “That two-minute phone call about that lien ends up taking 15 minutes, and that 15 minutes slows me down because then I                  have to redirect back into what I was doing before. That’s where the real time saving is.”

  • Cost Reduction: Outsourcing led to a dramatic decrease in the costs associated with lien resolution. The reduction in internal spending on these tasks directly contributed to increased profitability. The managing partner remarked:

         “By outsourcing our lien resolution and medical records retrieval, we did not need another paralegal.”

  • Increased Profitability: The strategic outsourcing led to one of the firm’s most profitable years, driven by cost savings rather than increased revenue. The firm’s managing partner observed:

         “We literally have just stopped doing unnecessary lien resolution, we are going to have one of the largest profit years we’ve                  ever had, not necessarily revenue into the firm, but profit!”

  • Quality and Speed of Service: Synergy’s expertise in lien resolution ensured that the quality of work was maintained or even enhanced, often faster resolution compared to in-house processes.  The managing partner emphasized the benefits of partnering with Synergy:

          “In terms of the benefits of outsourcing lien resolution, I would define it as:  Number one is buying back your time… Two, it                    doesn’t reduce the quality of work being done with these liens… And then third, it is faster for most clients than what we’re                  able to do on our own.”

Conclusion

The decision to outsource lien resolution to Synergy resulted in significant time savings, cost reductions, and improved operational efficiency for the five-lawyer North Carolina personal injury firm. By shifting its focus back to core operations, the firm enhanced both client service and profitability. As the managing partner summarized about the results of outsourcing:

“We are going to have one of the largest profit years we’ve ever had!”

 

This case study demonstrates how strategic lien resolution outsourcing can effectively alleviate administrative burdens, allowing law firms to optimize their labor resources and achieve greater profitability.

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