Letter of protection (LOP)
A written agreement, typically signed by the patient and their attorney, promising a provider will be paid for treatment from the case recovery. See what is a letter of protection.
Medical lien
A legal claim by a provider against a patient’s recovery in a personal injury case. See how medical liens work.
Receivable
Money owed to a provider for care already delivered.
Personal injury receivable
A receivable owed from a patient’s pending personal injury claim, usually paid when the case settles.
Settlement
An agreement that resolves a case, usually with a payment from the at-fault party or their insurer.
Demand
A written request, usually from the patient’s attorney to the other side’s insurer, to settle a claim for a stated amount.
Reduction
A lower payment than the full bill, negotiated when a case settles. Rules and practices vary.
Receivables funding
Cash provided to a provider against outstanding receivables, arranged under a written agreement. See medical receivables funding.
Factoring
Selling invoices to a third party at a discount for immediate cash. See funding vs. factoring.
Recourse
The extent to which a provider can be required to repay or make good on funded amounts if a case does not pay as expected. Terms vary by agreement.
Working capital
Cash available to run day-to-day operations such as payroll, rent and supplies.
Plan of care
A documented treatment plan for a patient, which supports the services billed.
This page is general information, not legal, tax or financial advice. Any funding is subject to review and a written agreement.