Why Lien Resolution Isn’t Your Firm’s Core Competency—and Why Outsourcing Matters

Personal injury firms excel at what they were built to do: securing justice by proving liability, telling their client’s story, and getting the best possible settlement or verdict. Yet once the dust settles, another challenge arises, resolving liens.

Here’s the hard truth: lien resolution, while critical, is not a law firm’s core competency. And that reality carries real costs for firms that try to manage it in-house.

The Problem with Keeping Lien Resolution In-House

Handling liens requires a completely different skill set than litigating cases. Instead of cross-examining witnesses or preparing exhibits, lawyers and staff must wade through:

• Complex regulations governing Medicare, Medicaid, ERISA, FEHBA, and private health plans.
• Deal with aggressive recovery contractors like Rawlings, Equian, Optum, and Conduent—organizations whose sole job is to extract repayment from settlements.
• Time-consuming negotiations and audits to dispute unrelated charges and reduce repayment obligations.

This is not advocacy in the courtroom. It is administrative, regulatory, and negotiation-heavy work. And every hour spent on it is an hour taken away from moving existing or new cases toward resolution.

The Cost

When law firms try to resolve liens internally, they often pay the price in three ways:

1. Lost Time – Staff and attorneys bogged down in lien disputes can’t focus on case strategy or trial preparation.
2. Financial Risk – Missteps with Medicare or Medicaid can result in penalties, interest, or even double damages against the firm.
3. Diminished Client Outcomes – Overpaying liens or failing to challenge invalid claims directly reduces a client’s net recovery and client satisfaction.

In short, doing lien resolution in-house diverts resources from your true strength: client advocacy and the pursuit of justice for those who are injured.

Why Outsourcing Is a Strategic Advantage

Outsourcing lien resolution isn’t about passing off busywork. It’s about recognizing that lien resolution is a specialized discipline requiring expertise, focus, and leverage.

• Deep Expertise: Lien resolution professionals live and breathe this work. They know the nuances of ERISA reimbursement provisions, Medicare conditional payments, and Medicaid state-specific rules.
• Leveling the Playing Field: Recovery vendors are massive corporations with teams dedicated to enforcing liens. Outsourcing ensures your client has equally sophisticated representation on their side.
• Better Financial Outcomes: Specialists know how to audit, negotiate, and challenge overreaching claims, often securing significant reductions for injury victims.
• Efficiency: By removing lien resolution from your team’s workload, you free up resources to focus on litigation and client service—the heart of your practice.

The Ethical Considerations

It’s not just about efficiency. ABA Model Rule 1.15 makes it clear: lawyers must protect third-party claims on settlement funds. That means missing a lien or paying one improperly isn’t just risky; it could be an ethical violation. Outsourcing to experts helps ensure compliance while safeguarding your firm’s reputation.

Conclusion

Trial lawyers already outsource to other experts in certain areas of their practices. Lien resolution is similar since it is not your firm’s core competency and treating it as such can be costly. By outsourcing to trusted experts, you not only protect your clients’ recoveries but also protect your practice from liability, inefficiency, and reputational harm.

At Synergy, lien resolution is what we do, day in and day out. Let us handle the complexity so you can get back to doing what you do best: winning cases and serving your clients.