Medical
Factoring

“Personal injury healthcare providers are like a virtuoso orchestra languishing in brilliance, stifled by an inept conductor´s misguided wand, a discordant symphony amidst financial dissonance.”

P. Daniel Villagomez

No-Fault Factoring

New York State requires that New York registered vehicles carry $50,000.00 in Personal Injury Protection Insurance (PIP), also known as No-Fault Insurance. In the event of a Motor Vehicle Accident (MVA), regardless of fault, one’s own insurance begins covering medical treatment.

70-80%

of the entire Medical Service Provider’s (MSP) bills are ever collected.

35% -40%

of all medical bills are voluntarily paid by insurance companies in the first year, depending on the modality and insurance company.

Bills are regulated by Worker’s Compensation Fee Schedules.
Arbitration or Civil Suit: The remaining balance of denied bills that are collected can only go through one of these processes for collection. This typically takes another 1-2 years from the date the MSP bills were denied. There are very few specific reasons the insurance company can deny payment that the court will uphold; some of the most common reasons include 1) the patient failing to attend a hearing called Examination Under Oath, and 2) exhaustion of the No-Fault policy.

Letter of Protection/Lien Funding:

When PIP is exhausted or there is a civil case with no insurance to cover further medical treatments, such as a premises suit (trip/slip and fall being the most common), MSPs will accept a lien from the patient for future payment of their bills. The MSPs will receive payment years later. This situation is not conducive to a growing medical practice that requires cash flow.
We can factor these liens, following similar funding schedules as those for factoring No-Fault receivables.
One of the programs Villagomez Capital has in its marketing plan is a “Just Say No to Liens!” campaign. Many surgeons charge a lower fee schedule (since Workers’ Compensation allows for about $9,000.00 for a fusion) because they lack access to much-needed capital. We can provide funding ranging from $25,000.00 to $75,000.00 for a fusion on high-liability cases, enabling surgeons to bill at fair market value, while also allowing us to accrue compounded interest.
Medical Factoring
1. In arbitration or suit.
2. Depending on the MSP bills can be factored from 15% to 35% of the portfolio value.
3. 10%-20% brokers’ fees and legal fees.

Security of Payment

The litigation law firm always signs a Letter of Protection (LOP) before Villagómez Capital releases any funding to a medical service provider. They may go by different names, but they are all liens. Similar to a mechanic’s lien on a mortgage, this LOP is a directive signed by the law firm receiving the award on behalf of their client that instructs and obligates the plaintiff’s law firm to pay Villagómez Capital when they receive remuneration from the claim.