Letter of Protection in Personal Injury Cases: Understanding Medical Liens

What Is a Letter of Protection?

A Letter of Protection (LOP) is a powerful tool used in personal injury cases to ensure that injured individuals receive necessary medical treatment even when they lack health insurance or available funds. When you’re hurt in a motor vehicle accident or an industrial incident, medical treatment becomes essential for your physical, mental, and financial recovery. However, paying for medical care can be challenging.

How a Letter of Protection works

• Deferred Payment Agreement: An attorney representing a personal injury plaintiff prepares and sends a Letter of Protection to the medical provider. In this contract, the attorney promises to pay the medical charges out of any financial recovery obtained on behalf of the plaintiff.
• Not a Lien: Unlike a lien, which is a creditor’s legal claim on property to secure debt payment, a Letter of Protection is not a direct claim on any specific asset. Instead, it ensures that the healthcare provider will receive payment from the settlement or favorable verdict in the case.

Advantages of Treating on a Lien Basis

• Access to Medical Care: With an LOP, you can receive necessary medical treatment even if you lack health insurance or funds. Doctors often agree to treat patients on a lien basis because they know they’ll be compensated once the case concludes.
• No Upfront Costs: Since the medical bills are deferred, you don’t need to pay upfront. This is especially beneficial when you’re already dealing with the financial strain of an injury.
• Improved Case Outcome: Proper medical care can significantly impact your recovery and overall case outcome. An LOP ensures that you receive the care you need without delay.

Common Questions About Letters of Protection

• Does the Health Care Provider Have to Accept the Letter of Protection? Yes, most healthcare providers accept LOPs because they understand the arrangement and trust that payment will come from the case settlement.
• Are Health Care Providers Paid More Under a Letter of Protection? Not necessarily. The payment terms are typically negotiated between the attorney and the provider.
• Can the Insurance Company Use the Letter of Protection Against Me? Generally, the insurance company cannot use the LOP to damage your case. It’s a standard practice in personal injury law.

Sample Letter of Protection to Health Care Providers

[Your Name]

[Your Address]

[City, State, ZIP Code]

[Date]

[Health Care Provider’s Name]

[Provider’s Address]

[City, State, ZIP Code]

Re: Letter of Protection for [Patient’s Name]

Dear [Provider’s Name],

I represent [Patient’s Name] in a personal injury case arising from [briefly describe the incident]. We request that you provide necessary medical treatment to [Patient’s Name] on a lien basis. Payment for your services will be deferred until the case concludes, at which point we will settle the outstanding balance from the recovery.

Please sign and return the enclosed copy of this letter to acknowledge your agreement to treat [Patient’s Name] under these terms.

Thank you for your cooperation.

Sincerely,

[Your Signature]

[Your Name]

[Your Title]

Remember to customize the sample letter according to your specific case and provider.