What Is Medical Lien Funding, and How Does It Work?

Reading Time: 3 minutes
How Does Medical Lien Funding Work?

Many victims of personal injury accidents in the United States are uninsured and often require medical treatment where they either pay for that treatment out of pocket or find a healthcare facility that is willing to provide treatment for future payment when the case settles. Obviously, these solutions are imperfect since medical debt from an accident that was a plaintiff’s fault isn’t always due to financial missteps.

Medical procedures from no-fault accidents are among the most unexpected, and they can be expensive. The question of how to pay for a medical procedure after an accident can cause tremendous stress when there’s no money to cover these expenses upfront.

Fortunately, if a client feels unable to pay for a medical procedure as a result of an accident, medical lien financing can help. Medical lien funding is a type of legal finance that pays part or all of a plaintiff’s medical procedures related to their personal injury lawsuit. Medical lien funding is not a cash advance given to plaintiffs, instead, it pays high deductibles, therapy, and surgical procedures to medical providers that will only need to be repaid if the injury case settles favorably.

How does medical lien funding for personal injury lawsuits work?

The first step in getting medical lien funding for a personal injury plaintiff is to apply for the advance.

After an application is submitted, the medical lien funding company will first speak to the attorney in charge of the case to decide that the given claim has merit. Then, they will reach out to the medical provider to discuss payment for future treatment.

Litigation funding companies work with medical providers to negotiate a fair cash price for the procedure. This negotiation between funding providers and doctors allows plaintiffs to get the immediate medical care they desperately need at a fair price. Furthermore, the medical lien funding company will negotiate a cash price for that procedure and pay the medical provider directly, and the lender gets repaid only if the case settles once compensation is received.

How do you apply for personal injury lien funding?

There are two main ways to apply for personal injury lien funding:

The first is as a plaintiff.

If you are a plaintiff in a personal injury claim and are uninsured, you can reach out directly to a medical funding provider to find out exactly what procedure you need and the cost. Then, consult with your attorney on the claim and the needed medical procedure to decide on applying for funding.

The second, and more common way to apply, is by having your attorney reach out on your behalf.

Having your attorney reach out to a funding firm on your behalf helps speed the process along and allows the funding company to analyze the claim quicker and thus approve funding for your medical procedure in a faster amount of time. Typically attorneys can call or fill out an online application on your behalf.

What happens after the medical treatment?

Once treatment is concluded, the attorney will submit a demand letter to the defendant requesting compensation for medical costs and pain and suffering.

The victim is not required to pay the financing firm anything until their attorney reaches a settlement agreement with the defendant or a jury awards damages. Once the settlement proceeds arrive in the attorney’s escrow account, he or she will take out the attorney’s fees, repay the medical funding company, and then issue the net proceeds to the client.

Medical lien funding does not affect the timing of a settlement or the time it takes for funds to be distributed to the victim when a settlement check arrives.

The takeaway

When medical bills are not covered by health insurance, Baker Street Legal Funding’s personal injury lien financing can help pay for out-of-pocket health costs from a personal injury accident. Medical lien funding not only allows plaintiffs to get the needed treatment but can also increase the value of the injury claim at hand by proving to the defendant that not only was medical treatment necessary, but it could not wait until after the case is resolved.

Use Baker Street Funding’s medical lien financing option for unexpected medical procedures for you or for your client. Our approval time is typically within 24 hours.

Request medical funding today.

At Baker Street Funding, we give you the inside scoop on pre-settlement funding by covering a variety of ... financing and legal topics to help you made the best financial decision for you and for your litigation. Our experts break down complex ideas in a way that's easy to understand so you can stay informed on current trends as well as tips and fact checked information by the CEO and founder, Daniel Digiaimo. Furthermore, Despite its name, consumer legal funding is not a loan. If you don't receive a recovery from your case, there won't be a repayment. To avoid confusion and simplify matters on, we'll use the word "loan" throughout this article.

See some of our settlement financing products

Select a legal funding service to get started. 

Attorney Requests

Lawsuit Loans

Litigation Funding

Personal Injury Loans

Settled Case Loans

Surgery Funding

Or just call us at 888.711.3599 to apply.