Expert: Ron Cercone - 9/16/2010

Question
We are a limousine/transportation services company in MI. We have recently taken on a job for a chiropractor, providing transportation to his patients involved in auto accidents to his office for treatment. He provides us with the patient information, insurance company and a claim #. We bill the auto insurance companies for services. Out of 10 claims we are only receiving payment on one patient thus far and have received several letters in return stating they will not pay on these claims. How do we get these companies to pay, and if they do not, who is responsible for the bills?

Answer
Patti,

Legally they don't have to pay unless there is a court judgment. However they often pay some bills in advance, like auto rental, and the cars value part of a claim because they know they that 99.9% of the time they will have to pay it anyway. What you are doing is something new and they are likely to resist. You have two options, either get the clients to sue for this and establish a pattern showing the courts will 99.9% pay on this (this is unlikely), or start taking the adjusters and managers out for lunch, gifts, etc.