Third-party liability recoveries are an essential part of the revenue cycle and can be a significant source of hospital revenue. However, in recent years, Third-Party Liability Recovery for Hospitals has become more complex due to rising health insurance rates and increased lawsuits against hospitals for substandard care or delayed diagnosis. When looking for a third-party liability management partner, it is critical that hospitals understand what type of organization they are hiring and whether or not they will be working with an experienced recovery firm.
Liability recoveries are the backbone of a hospital’s revenue cycle.
Liability recoveries are the backbone of a hospital’s revenue cycle. Without them, hospitals cannot afford to pay their employees and keep the lights on, let alone invest in new technologies and services that will benefit patients. Liability recoveries are also an essential source of revenue for many hospitals that do not have an affiliated health system or other large enterprise structure to support them financially. Liability recoveries are often referred to as “self-pay” or “commercial” payers because they do not include government insurance programs such as Medicare and Medicaid, which reimburse claims at lower rates than private insurers do.
Third-party liability recovery is more complex than insurance recovery.
The third-party liability recovery process is far more complex than insurance recovery. This is because there are numerous parties involved in these cases, and each party has its own set of interests and responsibilities. In addition, these parties may have different legal rights, which makes it even more difficult to determine who should be compensated for their losses and injuries.
The most common types of third-party liability claims include those stemming from car accidents, slip-and-fall accidents or other premises liability cases such as construction site injuries or elevator accidents. These are often referred to as “accident” lawsuits because they involve an accident caused by another person’s negligence (or lack thereof).
The process itself can take a long time due to all of these factors—from determining who will pay compensation for damages incurred by victims/plaintiffs; to negotiating how much each party should receive.
An increasing number of Lawsuits
In recent years, the healthcare industry has witnessed an increase in lawsuits alleging substandard care, delayed diagnosis and improper treatment. These lawsuits have led to settlements that can be quite costly for hospitals. As a result of rising costs, many hospitals have implemented strategies to reduce their risk of being sued.
One such strategy is the use of hospital liability insurance. This type of insurance protects you from large legal bills if a patient files a medical malpractice lawsuit against your hospital or clinic. Some states require all healthcare providers to carry it, while others allow you to choose whether or not you desire coverage. For Medical Malpractice Insurance Quotes mi click here.
Third-party liability can be very hard to identify.
Third-party liability is not always easy to identify, particularly as many third-party carriers are local or state-based. While finding out the carrier’s name through a Google search may be possible, it can still be difficult to determine who the insurance company is and where they are located. Sometimes, you may have to contact several companies before finding the right one.
What to look for in a Third-Party Liability Recovery for Hospitals Provider
- When looking for a partner, it is critically important that hospitals understand what type of organization they are hiring and whether or not they will be working with an experienced recovery firm.
- Understanding the size, scope and complexity of the third-party liability recovery process in your jurisdiction is critical before engaging an outside counsel to represent you.
- Your partner should help you maximize your revenue cycle by maximizing every dollar recovered for your hospital.