The short answer
A letter of protection is a written agreement, typically signed by the patient and their attorney, that promises a medical provider will be paid for treatment out of any settlement or judgment in the patient’s case. The provider agrees to wait for payment, and the patient gets care without paying up front.
Why providers accept them
Many injured people cannot pay for treatment while a claim is pending, and may not want to rely on their own health insurance for accident-related care. A letter of protection lets them get treated, and it lets a provider build a practice around injury patients.
For the provider, the tradeoff is the wait. Payment depends on the case, so the balance stays open until it resolves.
What a letter of protection usually contains
The exact content varies by state and by attorney. A typical letter includes:
- The patient’s and provider’s names and the attorney handling the case
- A statement that the provider will treat the patient and be paid from the case recovery
- An acknowledgment that the patient remains responsible for the bill
- Language about how bills and records will be shared with the attorney
What can go wrong
Cases can take a long time, settle for less than expected or not settle. Good documentation, clear billing and a working relationship with the attorney all help a provider get paid in full. See our guide to personal injury billing best practices.
Where funding fits
Providers who do not want to wait can look at letter of protection funding, which provides cash against these balances under a written agreement.
A note on legal advice
This guide is general information, not legal advice. Letter of protection rules and practices vary by state. Talk with a qualified attorney about your situation.
This page is general information, not legal, tax or financial advice. Any funding is subject to review and a written agreement.