How to Increase Cash Flow from Letters of Protection – cont’d

By | Blog

How to Increase Cash Flow from Letters of Protection

Physicians and medical practice executives can find it difficult to manage cash flow, especially amidst the ongoing concerns surrounding COVID-19 and as elective surgeries and other lucrative procedures continue to be put on hold. Cash flow difficulties compound when medical services are provided to personal injury patients on a Letter of Protection (LOP) – when payment from settlement can take years to receive.

Many practices attempt to handle LOP account balances in-house but LOPs are challenging for staff as practice management systems are not equipped to handle the complexities surrounding LOPs, including necessary and proactive follow-up measures with attorneys.

The downside, of course, is that cash flow takes a hit when LOPs are not managed properly and go unpaid. Since an LOP states that you, the medical provider, are agreeing to await payment from future settlements awarded to the patient/attorney, you can expect anywhere from six months to seven years before the practice realizes this revenue. Also, at the time of payment there may be reduction requests if the financial outcome of the legal case was not as expected. This can pose a serious risk to your payment. In response, some medical offices retain a paralegal or develop an underwriting department to screen the personal injury cases prior to seeing patients, all of which can be time consuming, costly and still result in unpaid LOP account balances.

 

LOP Financing Options: Third-Party, Inhouse, Gain Servicing

Many practices sell their LOP account balances at a discount to lien financing, or medical funding, companies. This provides the practice with immediate cash flow and offloads the work of tracking, managing and collecting on LOPs – but it comes with a tradeoff. Not only does the practice give up control of the process but having a third-party manage your LOP accounts receivables (AR) can come at a severe cut in profit depending on the bid amount of the financing company on your AR balances.

But, if managed inhouse, medical providers lack options to increase revenue and decrease time between service and payment for personal injury treatments.

A viable alternative is to consider a data-driven financing partner, like Gain Servicing. Our technology platform is backed by artificial intelligence and data from thousands of personal injury cases – intelligence we are able to pass along to our medical partners, resulting in fewer write-offs and more paid-in-full LOP balances.

Additional, unique benefits of Gain Servicing:

  • Automated LOP tracking – no more manual processes or workarounds
  • Optimized revenues – our AI-powered platform enables us to compare balances and case data points to help you get a better return
  • Business intelligence – detailed reporting and analytics show you how well our system is doing for you
  • Referral source analysis – know exactly how patients are choosing your practice through the identification and tagging of attorney referrals
  • White label options – our team can act as badged resources for your practice while collecting on LOPs, creating a consistent patient and attorney experience with your practice

In the Gain Servicing model, you benefit from our tools and technology, experience, expertise and optimization of LOPs without the risk you had previously been assuming by treating personal injury patients on LOPs and not having the right systems, processes, procedures and people in place.

 

A Newfound, Viable Source of Revenue: LOPs

With a financing partner like Gain Servicing, practices can open their doors even wider to personal injury and workers’ compensation patients.

Marketing for these ‘types’ of patients is relatively simple. Begin first by letting physicians know that they can bring their personal injury and workers’ compensation patients who are uninsured or underinsured to your facility. Many orthopedic surgeons and pain management physicians are already treating or being approached by attorneys to treat these injured patients. You can also notify your local personal injury attorney offices or local litigation groups who legally represent potential patients of your willingness to accept their clients on a lien or LOP.

 

In Closing

Communication with patients and attorneys is an ongoing requirement when dealing with LOPs; otherwise, it is possible they may settle the case without paying your medical bill. A technology-driven, experienced financing company, like Gain Servicing, takes on the role of an entire collections department while additionally providing LOP-specific tools, expertise and processes. Namely, LOP receivables do accumulate and age well beyond 120 days, and if not working with a medical-legal funding company, like Gain Servicing, you will need to allocate valuable resources to keep up to date and track your LOP accounts.

When evaluating alternatives to expand your reimbursement portfolio, accepting personal injury and workers’ compensation patients on LOPs is a sound business decision and requires minimal investment to significantly increase patient volume. You can reasonably expect that by opening communication with local attorneys, you will see consistent patient referrals – especially if you partner with an expert like Gain Servicing and have an efficient process surrounding LOPs.

If your practice has already been treating patients on LOPs and you need to increase your cash flow now, seek an experienced partner to monetize that patient volume through lien purchasing or servicing. Gain Servicing has several different options available, and we can customize a solution that will result in the greatest return on investment for your practice.

 

More About Gain Servicing

Gain Servicing specializes in the financing and servicing of personal injury and workers’ compensation patient receivables.

Gain Servicing is a wholly owned subsidiary of Cherokee Legal Holdings, a medical-legal funding company headquartered in Atlanta, Georgia. For over 10 years, we have financed existing third-party liability accounts from patient care that has been provided at healthcare facilities and medical practices across the U.S. We provide the underwriting and up-front screening, as well as process the paperwork and conduct the necessary follow-ups with attorneys after procedures are complete. We pay medical providers for their patient care, assuming the risk while providing immediate cash flow to the practice. Our goal is to increase healthcare organizations’ cash flow now while seamlessly allowing providers to do what they do best – provide care to those in need.

Gain Servicing is the go-to solution for medical practices providing quality care to the injured, underinsured and uninsured.

Cherokee Legal Holdings Hires Jonathan Razza as Vice President of Platform Innovation & Architecture

By | Press Releases

In Its Commitment to Technology, Cherokee Legal Holdings Creates New Position, Hires Product Management Expert

April 8, 2021 – Atlanta – Today, Cherokee Legal Holdings (“Cherokee”), a full-service direct legal and medical services company, providing financial assistance for plaintiffs, payment for medical care and the servicing of third-party, torte action receivables for medical providers, announced the hiring of Jonathan Razza as Vice President of Platform Innovation & Architecture. Jonathan started with Cherokee in March.

Cherokee has built a best-in-class technology platform with core competencies designed specifically to effectively service and manage tens of thousands of third-party liability liens simultaneously. Packaged as a platform and set of proprietary processes called “lien servicing” for healthcare providers, Cherokee’s lien servicing tool and capabilities has proven to deliver superior financial returns at a substantially lower cost than traditional in-house solutions.

“We are a technology-centric, data-driven company; we were in need of someone like Jonathan to take our platform, and services, to the next level,” said Cherokee CEO, Reid Zeising. “Jonathan’s extensive background in product management coupled with his experience in similar high growth, fast-paced environments like ours make him an excellent match for our organization. We are thrilled to have him on board.”

Prior to joining Cherokee, Jonathan was the Vice President of Emerging Technologies for Liaison, now OpenText, a data integration company. While leading the Liaison portfolio of products, Jonathan played a key role in the merger with OpenText. As the Senior Director of Product Management for OpenText, Jonathan was most recently responsible for global product strategy and the product roadmap for Trading Grid, the world’s no.1 integration managed services platform handling over 26 billion transactions and over $9 trillion in commerce per year.

For Cherokee, Jonathan will be responsible for defining strategic priorities and product vision. He will lead the internal development teams and execute product proof of concept ideas while assessing third party solutions for future product roadmaps.

Cherokee recently announced the launch of Gain Servicing (www.gainservicing.com), a SaaS-based, AI-enhanced third-party servicing platform. As Vice President of Platform Innovation & Architecture, Jonathan’s primary focus will be on driving excellence in product and platform strategy and execution.

About Cherokee Legal Holdings

Cherokee Legal Holdings (“Cherokee”), parent company of Cherokee Funding and Gain Servicing, is the fastest growing legal funding and medical lien servicing company in the United States. Cherokee has built a best-in-class technology platform with core competencies designed specifically to effectively service and manage tens of thousands of third-party liability liens simultaneously – this has proven to be much more effective than if a provider were to manage any volume of liens in-house.

More about our companies:

  • Cherokee Funding (cherokeefunding.com) provides monetary advances for personal injury victims to pay for their life needs and medical procedures while they await fair settlements.
  • Designed for healthcare providers, Gain Servicing (gainservicing.com) is built on a SaaS based, AI-enhance lien servicing platform and provides revenue cycle management (RCM), financial, underwriting, risk management, settlement, collections and reporting services to healthcare providers who treat personal injury victims.

Fundamentally, Cherokee believes that uninsured and underinsured patients who have suffered injuries in an accident, through no fault of their own, should have access to the same high-quality medical care as insured victims. In addition to Cherokee Funding and Gain Servicing, Cherokee has established a non-profit organization built around personal injury victim access to medical care. Stay tuned for more details, www.allpatientaccess.com.

Cherokee Legal Holdings Positioned for Growth, Hires Michael Byman as Vice President of Sales and Marketing

By | Press Releases

Cherokee Legal Holdings’ 5-Year Compound Annual Growth Rate Exceeds 50 Percent, Hires Vice President of Sales and Marketing to Lead the Company Through the Next Phase of Growth

March 31, 2021 – Atlanta – Today, Cherokee Legal Holdings (“Cherokee”), a full-service direct legal and medical services company, providing financial assistance for plaintiffs, payment for medical care and the servicing of third-party, torte action receivables for medical providers, announced the hiring of Michael Byman as Vice President of Sales and Marketing. Michael began with Cherokee at the beginning of the year.

“Michael’s extensive experience in the healthcare space combined with his focus on customer service and his competitive edge from being both a collegiate and professional athlete fits perfectly with Cherokee’s growth initiatives. We are here to change the healthcare and legal playing fields to the benefit of providers, attorneys and patients and he is the ideal leader for these goals,” said Cherokee CEO, Reid Zeising. “Michael has proven to be successful at every stage in his career and this latest challenge is one that he is ideally suited for.”

Prior to joining Cherokee, Michael worked as Regional Vice President for Jackson Physician Search, a Jackson Healthcare Company, where his region experienced 180 percent growth under his leadership, making it number one in region (2016-2020) for both growth and revenue. Additionally, Michael worked for Merritt Hawkins, part of AMN Healthcare, as Director of Business Development and Marketing, Smart-Tek as Divisional Vice President – Healthcare, and CompuPay Inc. as District Sales Manager.

The announcement of Michael comes as part of a series of promotions and new hires as Cherokee prepares for the next stage of company growth. Cherokee also recently announced the launch of Gain Servicing (www.gainservicing.com), a SaaS-based, AI-enhanced third-party servicing platform.

About Cherokee Legal Holdings

Cherokee Legal Holdings (“Cherokee”), parent company of Cherokee Funding and Gain Servicing, is the fastest growing legal funding and medical lien servicing company in the United States. Cherokee has built a best-in-class technology platform with core competencies designed specifically to effectively service and manage tens of thousands of third-party liability liens simultaneously – this has proven to be much more effective than if a provider were to manage any volume of liens in-house.

More about our companies:

  • Cherokee Funding (cherokeefunding.com) provides monetary advances for personal injury victims to pay for their life needs and medical procedures while they await fair settlements.
  • Designed for healthcare providers, Gain Servicing (gainservicing.com) is built on a SaaS based, AI-enhance lien servicing platform and provides revenue cycle management (RCM), financial, underwriting, risk management, settlement, collections and reporting services to healthcare providers who treat personal injury victims.

Fundamentally, Cherokee believes that uninsured and underinsured patients who have suffered injuries in an accident, through no fault of their own, should have access to the same high-quality medical care as insured victims. In addition to Cherokee Funding and Gain Servicing, Cherokee has established a non-profit organization built around personal injury victim access to medical care. Stay tuned for more details, www.allpatientaccess.com.

Danika Ransom Promoted to Senior Director of Operations, Richard Harrison Promoted to Director of Corporate Development & Finance

By | Press Releases

Cherokee Legal Holdings Announces the Promotion of Two Senior Team Members, Makes Two Additional Hires as Part of Company Growth Plan

March 22, 2021 – Atlanta – Today, Cherokee Legal Holdings (“Cherokee”), a full-service direct legal and medical services company, providing financial assistance for plaintiffs, payment for medical care and the servicing of third-party, torte action receivables for medical providers, announced the promotion of two senior team members.

Danika Ransom was promoted to Senior Director of Operations. Starting with Cherokee in June 2016 as a Case Manager, Danika has held multiple roles, including most recently overseeing both case management and risk management. In her new role, Danika will oversee underwriting, case management and risk management, as well as lead the development and roll out of Cherokee’s healthcare provider and law firm portals. In tandem with her promotion, Danika has hired Director of Operations, Paul Palladino.

Additionally, Richard Harrison has been promoted to Director of Corporate Development & Finance.  Richard began his career with Cherokee as Manager of Financial Planning & Analysis. His curiosity, talents and thirst for knowledge led him to take on additional challenges including deal origination, merger and acquisition activity and systems development. Richard has also been actively involved in Cherokee’s artificial intelligence initiative. In his new role, Richard will lead corporate development efforts in addition to the Cherokee finance department. With his promotion, Richard has hired Matthew Winstead as Senior Corporate Development and Financial Analyst.

“These are the first of many organizational announcements to come as we prepare for the next stage of our growth,” said Cherokee CEO Reid Zeising. “We are proud to promote from within, especially individuals like Danika and Richard who are representative of the ‘can do’ attitude that exemplifies our commitment to employees, customers and partners. Our objective is to ensure that we have the best workflow possible in order to create the best user experience for our customers, and to make our process as smooth and efficient as possible. Coupled with the latest cutting-edge technology employed across our portfolio, individuals like Danika and Richard make that possible.”

The announcement of Danika and Richard comes as part of a series of promotions and new hires. Cherokee also recently announced the launch of Gain Servicing, a SaaS-based, AI-enhanced third-party servicing platform.

About Cherokee Legal Holdings

Cherokee Legal Holdings (“Cherokee”), parent company of Cherokee Funding and Gain Servicing, is the fastest growing legal funding and medical lien servicing company in the United States. Cherokee has built a best-in-class technology platform with core competencies designed specifically to effectively service and manage tens of thousands of third-party liability liens simultaneously – this has proven to be much more effective than if a provider were to manage any volume of liens in-house.

More about our companies:

  • Cherokee Funding (cherokeefunding.com) provides monetary advances for personal injury victims to pay for their life needs and medical procedures while they await fair settlements.
  • Designed for healthcare providers, Gain Servicing (gainservicing.com) is built on a SaaS based, AI-enhance lien servicing platform and provides revenue cycle management (RCM), financial, underwriting, risk management, settlement, collections and reporting services to healthcare providers who treat personal injury victims.

Fundamentally, Cherokee believes that uninsured and underinsured patients who have suffered injuries in an accident, through no fault of their own, should have access to the same high-quality medical care as insured victims. In addition to Cherokee Funding and Gain Servicing, Cherokee has established a non-profit organization built around personal injury victim access to medical care. Stay tuned for more details, www.allpatientaccess.com.