Revenue is recognized now, received later
When a patient is treated under a letter of protection or lien, the practice has done the work and recorded the revenue, but the cash arrives at settlement. The more injury patients you treat, the larger that unpaid balance grows.
Growth makes it worse before it helps
Adding staff, hours or locations to see more patients raises your costs right away. The related revenue shows up later. Practices can find themselves cash constrained exactly when they are growing.
Uneven payments
Settlements land unpredictably, and a few large payments may arrive in one month and none in the next. That makes payroll and budgeting hard.
What practices do about it
- Track open balances by case and firm
- Keep documentation clean so settlements pay in full
- Build a cash cushion in good months
- Explore working capital funding against receivables
Talk to someone who gets it
If cash flow is limiting your practice, request a review. We will explain what we can and cannot do.
This page is general information, not legal, tax or financial advice. Any funding is subject to review and a written agreement.