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To Outsource or Not: Which Lien Type Makes Sense

The decision to outsource lien resolution is pivotal in a personal injury practice as it can significantly improve both the efficiency of the firm and financial outcome of a client’s case. With varying complexities and regulatory requirements, understanding which healthcare liens benefit from external expertise and which can be managed internally is crucial. Here’s a breakdown to guide your decision-making process:

Liens Suitable for Outsourcing

The following liens may benefit from hiring outside lien resolution experts to resolve them for a variety of reasons:  Medicare conditional payments; Medicare Advantage liens; Medicaid liens, ERISA plan liens; Federal Employee Health Benefits Act (FEHBA) liens; military plan liens, private health and hospital/provider liens.  All of these liens involve complex regulatory schemes or complicated legal issues that make them much more difficult to resolve without the requisite specialized knowledge.  For example, Medicare has specific prescribed timelines and regulatory requirements as well as multiple methods for requesting a compromise or waiver.  Medicaid varies greatly from state to state as it is governed by Medicaid third party liability statutes.  ERISA plans have their own unique set of challenges for trial lawyers.  These nuances for different lien types makes it challenging to resolve without specialized experts who understand all of the complicated issues that come with specific types of liens. 

Liens Typically Not Appropriate for Outsourcing

However, some liens may be better resolved in-house due to their specific characteristics or the nature of the relationship with the lienholder.  The following types of liens are typically better handled in-house:  Small liens of $2,000 or less; local provider liens; worker’s compensation liens; Medicaid estate recovery liens; child support liens and pre-settlement funding liens.  All of these involve either inefficiencies or specific characteristics that don’t make them good candidates for outsourcing.  For example, a local provider a law firm has an ongoing relationship might not benefit from a third-party lien resolution company negotiating with them.  Workers’ compensation liens, Medicaid estate recovery liens, child support liens and pre-settlement funding liens are all governed by state specific laws which are better addressed by those most familiar with that state’s applicable laws. 

Conclusion

Deciding whether to outsource lien resolution involves evaluating the type of lien, its complexity, and your firm’s expertise. By understanding which liens benefit from specialized handling and which can be resolved in-house, you can optimize cost-efficiency and client satisfaction. This strategic approach ensures that lien resolution is handled effectively, whether by leveraging external expertise or utilizing internal resources.

If you would like to read more on this subject click HERE to download our white paper titled “A Guide To Resolution:  Which Liens to Outsource and Those to Keep In-House.  If you are ready to get started with outsourcing today and want to partner with Synergy, contact us TODAY. 

Written by: Jason D. Lazarus, J.D., LL.M., MSCC | CEO

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