In the complicated world of personal injury practice, lien resolution is a pivotal yet often daunting aspect of the resolution process for cases. For trial lawyers, the task of the resolution of various liens can be both challenging and crucial to maximizing the client’s net recovery. The evolving complexity of healthcare reimbursement systems and the rigorous regulatory requirements of government plans necessitate a meticulous approach to lien resolution.
Understanding Lien Resolution
Lien resolution requires a detailed process for addressing and negotiating claims made by healthcare providers, government agencies, and other entities against a portion of a settlement in a personal injury case. These claims, or liens, must be resolved to ensure that settlement funds are distributed to the injured party free of any future claims by healthcare providers or insurance plans. Failure to resolve liens correctly can lead to significant financial and legal consequences for everyone involved.
The Importance of Lien Resolution
- Client Recovery: The accurate and efficient resolution of liens is essential for maximizing the amount of settlement funds available to the client. A less-than-optimal lien resolution process can drastically reduce the client’s net recovery, creating more financial strain post-settlement and less satisfaction with the outcome.
- Compliance: Adhering to legal and ethical requirements is crucial. Different types of liens—such as those from Medicare, Medicaid, ERISA, FEHBA, Military, hospital, and private health insurance—come with specific resolution processes and legal issues. Understanding and complying with these processes/laws is vital to avoid complications.
- Financial Responsibility: Appropriate resolution helps prevent financial liabilities for all involved parties. Incorrect handling can result in claims against settlement funds even after they’ve been disbursed, potentially leading to additional financial burdens.
- Professional Reputation: Efficiently resolving liens not only satisfies clients but also enhances an attorney’s reputation. Positive outcomes and satisfied clients often translate into more referrals and better professional reviews online.
Lien resolution is more than just a procedural necessity; it is a critical element in ensuring that clients receive the maximum net recovery from their settlements. For trial lawyers, mastering this aspect of resolution is essential for achieving optimal outcomes and maintaining a high standard of professional excellence. In many situations, it may be best to outsource this function to reduce liability, eliminate internal costs of resolution, and get the best net recovery for the client.
If you want to learn much, much more about lien resolution and outsourcing, click here to download our Outsourcing & Lien Resolution Guide for Trial Lawyers. To learn more about partnering with Synergy for lien resolution click HERE.
Written by: Jason D. Lazarus, J.D., LL.M., CSSC, MSCC | CEO
