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Why do attorneys ask DCs to drop their fees?
By Deborah Green, Esq.

Why are PI attorneys always asking me to reduce my fees?

I asked Anne, a Florida personal-injury paralegal and former insurance adjuster, to answer this question for you. Here’s what she said:

I am often assigned the odious task of asking healthcare professionals to reduce fees. I groan inwardly when I have to approach the same gracious providers and beg for a discount.

The reason we are forced to make these requests boils down to a simple fact: The settlements being foisted on us are too low.

Most cases are of the soft-tissue variety with either nonexistent or debatable objective findings. Insurers have tightened awards in such cases, and they typically settle for $2,000 – 6,000. Even documented herniations (without surgery) may settle for as little as $6,500.

It is rarely cost-effective to litigate a soft-tissue case and risk a zero verdict when faced with a $10,000 policy limit. The best negotiated settlement must be divided so that all providers (including the attorney) and, most importantly, the client, receive something. Such is the case even in serious cases with higher policy limits in which the medical balances often exceed the amount of the settlement.

Client expectations also play a large part in the settlement process. For example, when the insurance company tenders its $10,000 limit, the client may become incredulous when informed that he will receive $3,500 after fees, expenses, and medical balances are paid.

Attorneys must work to increase the client’s award to at least 40 percent of the settlement in order to settle the case and avoid filing for equitable distribution, which would leave all parties to the mercy of the courts and could delay disbursement by up to a year.

It is prudent to consider the following when accepting a patient for treatment:

In a perfect world, all injury awards would be adequate, and all providers would be paid in full for their services.

In the real world, however, we are restricted by policy limits, jury verdicts, and compromises necessitated by factors beyond our control. We can only protect ourselves through the proper screening of patients/clients and by mutual respect and cooperation.

Direct questions to Deborah Green, Esq., at healthattorney@aol.com or call 954-923-0923. She is licensed to practice law in New York and Florida. Her specialty is healthcare.

DISCLAIMER: This column is provided for educational purposes only. The information presented is not presented as legal advice with respect to any matter and no attorney-client relationship is established.