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Practice Management Alert

Buckle Up for Patients Involved in Auto Insurance Lawsuits

Published on Sun Dec 01, 2002

Strap in tight: Your automobile accident patient's legal proceedings can mean a long, bumpy ride for your office even if you're not directly involved. Avoid financial dents by practicing these safety tips:

  • Immediately talk to the lawyer or paralegal on the case, says Peggy Schaetz, at Green Bay Plastic Surgical Associates. In her experience, "They will be very honest with you about whether they think there is a good lawsuit," she says. This information will give you a good idea about your patient's future financial situation.
  • Provide medical records when requested in a timely fashion in order to protect yourself, says Marsha Sosebee, collections coordinator and team leader for the billing and collections department at Associates in Orthopedics and Sports Medicine in Dalton, Ga.
  • Obtain a lien against the settlement by contacting the patient's attorney, Sosebee advises. The lien basically states that the attorney and patient must pay your bills out of the settlement before the patient receives her portion, she says.

    Beware of two dangers with liens. First, a hospital lien takes precedence over a physician lien, so your physicians may not get paid, Sosebee warns. Also, an "unscrupulous" attorney may not honor your lien, though Sosebee has never seen that happen.

    In lieu of a lien, you can consider using the prevention form that Schaetz sends to her patients to sign, and then make copies for the office, the patient and the patient's lawyer. (See form in article 9.)

  • Follow up on the settlement's progression. Write a reminder to check up on the account, and keep in touch with the lawyer's office and the patient, Schaetz says.

    • If all else fails, turn to outside collection agencies. If your patient loses the court case but doesn't end up paying you, send the claims to an outside collection agency, which has "better sources" for collecting, as Schaetz reports she did in one instance. Your patient may receive a settlement large enough to cover the medical expenses, but he may skip out on paying when he files for bankruptcy. Before the lawsuit is settled, however, hold on to your accounts, otherwise the outside collection agency simply holds them until the settlement is finished and then charges you for using the agency.

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