As a trial lawyer, you might wonder why you should consider outsourcing lien resolution when it seems manageable to handle in-house. Additionally, you may question whether it’s ethically permissible to engage a lien resolution company like Synergy. The answers to these questions highlight both practical and ethical considerations essential for personal injury law firms to operate at peak efficiency.
Why Outsource Lien Resolution?
Efficiency and Expertise: Handling liens is a complex, time-consuming task that often diverts focus from core legal work for personal injury law firms. When law firms resolve liens in-house, they must investigate, identify, audit, verify and resolve various liens, including subrogation claims and debts against settlements. This involves assessing the legal validity of claims and engaging in protracted negotiations. Given these responsibilities, it is easy to see why outsourcing can enhance efficiency. Specialized lien resolution firms bring deep expertise and dedicated resources, offering a streamlined process that can significantly reduce the burden on a personal injury firm.
Navigating Complexities: The landscape of lien resolution involves dealing with various types of liens, including Medicare, Medicaid, ERISA, and more. Each has its own set of rules, regulations and resolution processes. Government benefit plans and recovery vendors are often large, well-funded entities with the sole focus of recovering money from personal injury settlements. These organizations have extensive resources and sophisticated strategies to assert their claims. Partnering with a lien resolution expert allows you to leverage their specialized knowledge and negotiation skills, leveling the playing field when confronting recovery contractors.
Cost-Effectiveness: Outsourcing lien resolution can also be financially advantageous. The costs associated with managing liens internally—such as time, resources, and potential delays—can add up quickly. By outsourcing, a personal injury law firm can reduce operating expenses and avoid the inefficiencies associated with handling these tasks in-house. This approach allows you to focus on moving cases toward settlement or trial, ultimately improving your firm’s bottom line.
Ethical Considerations When Outsourcing
Compliance and Integrity: It is important to ensure that outsourcing lien resolution complies with ethical and legal obligations. Law firms must adhere to specific rules governing the management of client funds and lien resolution. This includes maintaining transparency and ensuring that the outsourced firm operates within the legal and ethical frameworks set by the applicable Bar regulatory bodies. A future blog post will address how to comply with ethical rules when outsourcing lien resolution, ensuring that client interests are protected and professional integrity is maintained.
Conclusion
Outsourcing lien resolution is more than a logistical decision; it is a strategic move that can greatly benefit personal injury law firms. It provides access to specialized expertise, enhances efficiency, and reduces operational costs. While navigating lien laws can be challenging, partnering with a dedicated lien resolution team ensures that you can achieve optimal results for your clients and maintain a competitive edge in your practice.
If you want to learn more about outsourcing, click HERE to download our “Strategic Benefits of Outsourcing Lien Resolution for Personal Injury Law Firms” white paper. If you would like to get started with outsourcing lien resolution and partner with Synergy, contact us today!
Written by: Jason D. Lazarus, J.D., LL.M., MSCC | CEO
