What are Medical Liens

A medical lien is a legal arrangement that allows healthcare providers to offer treatment to personal injury patients without requiring immediate payment. Instead, the provider gets compensated once the patient’s legal claim is settled.

Key aspects of medical liens:

• No upfront costs for the patient: The patient receives necessary care without paying upfront.
• Settlement-based payment: Providers are paid when the patient’s legal case is resolved, often from a settlement or judgment.
• Delayed payments: Legal cases can take months or even years, delaying when providers receive their money.
• Risk for healthcare providers: Since payments rely on a settlement, providers face financial uncertainty and cash flow challenges.

How Medical Lien Funding Works

Medical lien funding companies like EAC Funding provide solutions to alleviate the financial burden that healthcare providers face. Here’s how:

• Immediate payment: Providers sell their medical liens to funding companies, receiving upfront payment for their services without waiting for a legal case to conclude.
• Risk transfer: The funding company takes on the risk of delayed or unsuccessful settlements, relieving the healthcare provider.
• Case evaluation: Companies like EAC Funding carefully underwrite and evaluate the strength of the personal injury case to determine its viability before purchasing the lien.
• Cash flow relief: By selling the lien, healthcare providers maintain a steady cash flow, allowing them to continue focusing on patient care rather than collections and billing.

Benefits of Medical Lien Funding

• Improved financial stability: Healthcare providers avoid the risks and delays associated with liens.
• Focus on care: Providers can concentrate on patient care rather than administrative and legal hurdles.
• Support for patients: Injured patients receive necessary treatment without the stress of upfront payments.

Medical lien funding ensures that healthcare providers are compensated fairly and promptly while supporting injured patients awaiting their legal claims.