Understanding Medical Liens: What CEOs Should Know

Forbes

a day ago

Mark Berookim is CEO & co-founder of High Rise Financial, a leader in pre-settlement legal funding and medical liens for plaintiffs.
As CEOs, we're usually focused on big-picture goals such as growth, strategy and risk management. But when someone we work with, an employee or colleague, is seriously injured in an accident that was not their fault, it's the personal challenges that matter the most. In those moments, the support we offer can make a real difference.
One of the most overlooked yet impactful tools available to individuals recovering from a personal injury is the medical lien. In my role leading a litigation funding company, I've seen firsthand how access to lien-based care can significantly improve both the physical outcome and long-term financial stability of plaintiffs. However, I've also seen how few people fully grasp what medical liens are and how to navigate them. Here's what CEOs should know:
What A Medical Lien Is And Why It Matters To Business Leaders
A medical lien is a legally binding agreement with a healthcare provider that allows a patient to receive full treatment without making any immediate payments. The hospital or medical practitioner agrees to be paid later from the settlement the plaintiff is expected to receive from their lawsuit. With this option, there is no burden of upfront costs and the healthcare provider is guaranteed payment once the case settles and receives compensation.
By understanding how medical liens work, leaders can better support employees as they recover and navigate their legal claim. Personal injury cases often take months or even years to reach a settlement. During this time, plaintiffs might struggle to pay for necessary care and essential expenses. Without access to lien-based care, some employees might even delay or skip treatment because they are worried about the cost. This can slow down their recovery and make it harder for them to return to work. With the support of a medical lien, employees can focus on healing. Medical liens also help to foster a workplace culture that shows you care about your employees' well-being through every stage of their recovery.
Things To Keep In Mind When Discussing Medical Liens
If you're in a position to guide someone toward lien-based care, there are a few important nuances to keep in mind:
Firstly, medical lien providers assess the strength of your case. Because repayment depends on a successful case outcome, healthcare providers will typically require confirmation that the plaintiff has legal representation and a case with merit. To avoid disappointment, your employee needs to understand that not all injuries or claims will qualify.
Secondly, the final compensation is shared. Once the case is resolved, attorney fees, medical liens and any pre-settlement funding advances are deducted from the compensation. You need to ensure your employee understands these deductions so they are not caught off guard when the final amount is distributed.
Practical Ways To Help Your Employees
As a leader, you can't control the legal process, but you can help to create an environment that supports employees in their decision making. Here's how:
Ensure your HR or benefits team has a go-to list of reputable legal and financial resources, such as attorneys, pre-settlement funding companies and medical lien providers. Having this ready means employees won't have to scramble to find help during a crisis.
Create a space for employees to discuss their treatment options and timelines with HR or a wellness coordinator, especially if their injury affects their ability to work. Emphasizing the importance of getting care early, possibly through a medical lien, can lead to a faster recovery and better financial outcome.
Most people don't even know that the option of a medical lien exists. It is up to you as a leader to ensure your employees are educated about their options. By hosting annual seminars or inviting representatives in the field to discuss medical liens and pre-settlement funding options, you can ensure your employees have the necessary knowledge to make an informed decision if the time comes.
In the world of personal injuries, healing isn't just about surgery and physical therapy. It's also about peace of mind and knowing there is a path forward. Medical liens create a space for that peace of mind, even in the midst of legal and financial uncertainty. As CEOs, we're uniquely positioned to foster support systems that go beyond the surface. By understanding medical liens and how they fit into the broader picture of recovery, you can help ensure that your employees don't delay care, settle for less or carry more debt than they should. Being informed isn't just good leadership—it's a way to create meaningful impact in the lives of those around us.
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