Medical Records and Legal Funding Decisions
For legal funding approval on most injury cases, legal funding companies will require treatment records.
Underwriters use medical records in legal funding decisions to get a feel for damages and potential case value.
Legal Funding Depends on Case Value and Case Value on Medial Records
Whether or not you get approved for funding usually depends on a few basic factors, liability, damages, and coverage.
If there is sufficient coverage and liability is pretty clear, the value of your case will likely boil down to the damages you’ve suffered.
Legal funding companies look at your medical records to see what treatment you’ve had, and what treatment you are likely to have in the future. Because all of this treatment costs money, it provides a hard number for damages you’ve suffered.
As a rule-of-thumb, most funders will assume a three-times multiplier on medical expenses for an estimate of case value. While this is a decent estimate, serious conditions and permanent injuries can have dramatic effects on settlement value.
Initial Medical Reports and Legal Funding
In some cases, these might also be helpful for liability. Legal funding companies like to see a story.
If you tell the ER the day of the accident that only your knee hurts, and then have a serious back surgery, a lawsuit funding company could be skeptical about the cause of your back injury.
Some injuries take time to present, but it is important to tell medical providers about all injuries you have, even if they seem minor.
Diagnostic Medical Records and Legal Funding
For a legal funding company, diagnostic records like X-Rays or MRIs give a very clear picture of current injuries and potential future treatment.
If you end up having surgery, these are also used to justify that your surgery was consistent with a conservative treatment plan.
Operative reports give legal funding companies a breakdown of your surgery. All other things equal, funders assume case values based on the type of operation. A knee arthroscopy is less serious than a neck fusion surgery, and case value reflects this.
Surgeons often provide commentary on the pre-surgery condition and post-surgery improvement. This information tells them clearly what surgery you had, and if any future surgeries are likely.
Healthcare Plan Reports
It’s important that your settlement compensates you for the cost of future treatment and procedures. If you will require ongoing treatment, your attorney might have an expert draw up a healthcare plan report.
Just like past medical expenses, pre-settlement funding companies will take future medical expenses into account. Without a healthcare plan report, it is much tougher to give full value to expected future treatment. Once you have a healthcare plan report, and funding companies treat these as likely future expenses. Legal funding companies are more likely to fully value planned expenses when considering funding your case.
Uplift Legal Funding
Hopefully this article has shed some light on how medical records and legal funding decisions work. Uplift Legal Funding provides fast and easy legal funding on most personal injury cases.
To learn more, see our breakdown of how legal funding works.