Last Updated On: 14 June 2016

Understanding Personal Injury Lien

In case of an automobile accident or a workplace accident where the injured is a victim of someone else’s negligence, the injured can sue the negligent party. The attorney of the injured gets paid from the settlement amount only if he wins the injured compensation for the damage caused. The patient selects a doctor to work with him on the case with a promise to be paid after the case is settled in court. The good part for doctors is that no matter what the result of the case is, they get paid.

So, what is a medical lien? Why did doctors in the past avoid such kind of work? What is it that has changed and how does it all affect the patient’s compensation? Let’s answer all such questions in this post.

Here are some of the frequently asked questions about personal injury lien:

What is a lien or what is a letter of protection?

A medical lien is a promise that the doctor working on a personal injury or a workers’ compensation case will be paid after the case is settled in court. Personal injury cases require a doctor to treat the patient until recovery and many times the patient does not have that amount to pay upfront or the insurance does not cover the expenses. The attorney, who represents the injured in such cases, and the patient, both offer the doctor an agreement that he will be paid, after the case is settled in court. This agreement or promise is called a lien or a letter of protection. The letter of protection is sent by the attorney to the treating doctor and is signed by the patient.

What is the role of the attorney in a personal injury case?

The attorney gathers all the medical evidence. The attorney gets paid from the amount that is claimed in court.

What is the role of a doctor in the personal injury case?

The role of a doctor in a personal injury case is crucial. During the course of treatment, the doctor needs to maintain a meticulous record of all that he observed and note the progress of the patient. The doctor is the one who decides whether the injured is fit to go back to work. The doctor also decides the level of impairment.

Why would doctors take the risk?

In the past, doctors generally avoided lien cases because they took a long time to settle. There were a lot of negotiations to be done and there were many parties involved in the negotiation. The entire experience was frustrating. Today the scenario is different. Attorneys and doctors along with the patient negotiate terms of the agreement on a one-to-one basis. Doctors understand that their services are valuable to the case as well as they get paid for it! They are more willing to take a risk.

What is the role of Power Liens?

Power Liens is an online directory of doctors that work on personal injury and workers’ compensation cases. Attorneys can easily find doctors who are willing to work on liens and negotiate terms of the agreement on a one-on-one basis. We stay out of any negotiations. Doctors register themselves and attorneys can browse for a doctor on lien!

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