Expert: Ray A Miller - 2/21/2011

Question
QUESTION: I have requested a letter of protection from our patient's attorney, since his insurance company states he has out of pocket costs.  Normally we would put an account into collections or file a complaint in superior court.  Instead of the letter of protection, his attorney stated that he "will contact us when the case is settled to resolve any outstanding balances in accordance with the NJ fee schedule," and also requested that we discontinue sending dunning notices to our patient.  The way I see it, this is not a letter of protection.  Why is he reluctant to provide one?  What else can we do to protect ourselves?  We have been running into many attorneys that are now saying they didn't have our statement (which they definitely did), or simply overlooked, and several years later, we are having to go after the patient for their balance.  There has got to be a better way!!!  What is is?  I am so frustrated!!!  Thank you.

ANSWER: It sounds like the attorney talked you out of protecting yourself.  I would take whatever steps necessary to protect my interest in any settlement the insured was going to receive.

As far as letters of protection, they usually are not worth the paper they are written on because the client can revoke it at the time of settlement.  What you need is a lien on the settlement which is given by the client's attorney.  If the attorney intends to pay you out of the settlement, he will give you this type lien.

---------- FOLLOW-UP ----------

QUESTION: If the attorney refuses to provide the letter for a lien on the settlement, I guess we're right back where we started from...having to go after the patient. Do you have any other encouraging pearls of wisdom for our plight?  Thank you.

Answer
The best thing to do at this point is to contact the consumer and tell them what the attorney said and inform the consumer that you are going to go after a judgment against them.  Maybe this will light a fire under the consumer to light on under their attorney.  Good luck with this.