Re: Third party claims

[Guest guest]

Tom;

I'm not sure there are great answers to your question. However, here are

some generic comments that are worth considering. Auto/Liability laws vary

state by state. I would encourage you to hook up with an attorney and ask

them if your state has subrogation laws. In one state where we have clients,

the law is clear that the person responsible for causing the accident

ultimately bears the full financial responsibility. However, they have the

right to refuse making any payments until they decide to settle. As you have

indicated, this might be six months, it might take much longer. If that is

the case, this state then requires the injured party's auto policy (in auto

accident cases) to bear full financial responsibility up to the limits of the

medical rider on their policy. When this is exhausted, the patient's

commercial insurance becomes primarily liable. As I mentioned, when all the

dust settles, the person responsible for the accident-their auto insurance

then has to reimburse anyone would paid for medical services.

Once you figure how your state liability laws are structured, you will have a

better idea of how to proceed.

If there aren't any laws like this on the book, I would make sure that your

patient registration form has language on the bottom that requires the

patient to assume liability. Liens are good, but they also suppose your

client will prevail and your bills will be paid at 100%. This doesn't always

happen!!! By adding a blurb on your registration form, you can begin billing

the patient at any time and get something started on the balance.

Lien letters are good, but they assume all attorneys are good hearted, honest

people who make it a point to keep your financial interest in the forefront

of their minds...Okay, fantasy over.

One Therapist I crossed paths with years ago did strictly these types of

liability cases (90% of her business). She had several attorney friends show

her how to get court records and she tracked all of her client cases once a

month. Her collection rate was 90% of her billed charges. Don't know if you

have attorney friends that are willing to show you how to do this, but it

could be a lucrative practice (hers was a $3-5 million per year practice if

my memory is accurate).

Hope something in this rambling helps you. By the way, if you need that

blurb on the bottom of your registration form, let me know and I will fax a

copy...but I think K. might have this type of registration form already

on the PTManager web site.

Jim Hall, CPA <///><

General Manager

Rehab Management Services, LLC

Cedar Rapids, IA

319/447-5625

Visit our web site at:

<A HREF= " http://rehabmgmt.com " >http://rehabmgmt.com</A>

[Guest guest]

Hello-

I am out of the office Friday, 12/20/02 through Friday, 01/03/03 for the

semester break. I will return to the office Monday, 01/06/03.

The college is closed from Tuesday, 12/24 through Wednesday, 01/01/03.

The college reopens on Thursday, 01/02/03.

If you need immediate assistance, please contact ann Fitzgerald,

Department of PT Administrative Assistant at 213/477-2600.

When I return, I will review your e-mail as promptly as I can and, if

appropriate, I will respond.

Happy Holidays!

[Guest guest]

Tom & others;

One additional thought is that if claims go beyond 60 days in the payment

cycle, our client registration for reserves the right to charge interest.

Don't know if this will help, but I do know the Attorneys frequently call

after a settlement fishing for a discount (we always tell our clients to

follow Reagan's advice-JUST SAY NO). Our experience is that these

fishing expenditions are to fatten the attorney's take from the settlement.

Although we do not play the interest charge very frequently, we do threaten

to use it to induce a patient to begin making monthly payments on their

account until the settlement occurs. Naturally, we tell them that if their

balance is paid by the time the settlement occurs, they get their money back

from the attorney.

Jim <///><

[Guest guest]

,

We often get the sob story from the attorney that " The case didn't go as

well as we hoped. " When that story pops up I tell them, " I tell them,

" Our fees are based on the services we provide, not on how well you do your

job. If you do well we don't expect more, so I think it's fair that you

don't expect less now. " When they ask for a discount I say, " sure no

problem but then we'll have to charge you interest. " I usually offer them a

10-15% discount if they get us a check within a week. It usually works.

I did get burned by an attorney who was " defending " himself. Two years

after we d/c'd him he wanted us to bill his health insurance whom he knew

would not pay. But we both received EOB's with the contract allowable

amount. He then insisted on paying the allowable amount. Since then if

people want us to bill their car insurance or give us a letter of protection

we tell them up front that we will not go back and bill their health

insurance.

On the flip side, we look at the personal injury situation this way. Most

of the time we get all or nearly all our money (what we billed) 12-24 months

after services are renfrdered. With the insurance cos. limiting visits,

number of procedures per visit and wanting about a 30-50 percent disount, we

feel it is often worht the wait. You know what Tom Petty said.

Aube

Rehab Profesisonals of Cleveland