Greater Transparency Can Expose Illusion of Medical Receivable Funding in Tort Litigation
Insurance Fraud and Recovery Attorneys David Spector and Caitlin Saladrigas co-authored a Washington Legal Foundation article about the rise and impact of medical receivable funding companies which purchase “medical receivables” from medical providers who render care to personal-injury plaintiffs. In principle, medical receivable companies widen access to medical care for underinsured personal-injury plaintiffs who would be unable to afford such care without the assistance. Yet, some medical receivable funding companies are far from altruistic. Instead, these companies capitalize on tort claims’ damages awards and settlements by purchasing severely discounted receivables from the treating medical providers who would otherwise be compensated for the services rendered to plaintiffs at the conclusion of a claim or litigation. If left unchecked, these companies could fuel a significant increase in tort claims and litigation.