What is an lop?

An LOP, or Letter of Protection, is a legal document that is typically used in personal injury cases. It is an agreement between an attorney and a healthcare provider that ensures the provider will receive payment for medical services rendered to the injured party, even if the case is not yet resolved.

Here are some key points about LOPs:

1. Purpose: An LOP is designed to provide access to necessary medical treatment for an injured individual when they may not have the means to pay for it upfront. It allows the injured party to receive treatment without incurring immediate out-of-pocket expenses.

2. Process: When an attorney believes their client has a valid personal injury claim, they can issue an LOP to healthcare providers involved in the individual's care. The LOP informs the provider that they will be compensated directly from the settlement or verdict amount, rather than seeking payment from the patient.

3. Payment Guarantee: By signing an LOP, the attorney guarantees that the healthcare provider will be paid their charges, even if the final settlement or verdict amount does not cover the full medical expenses. This agreement encourages providers to continue treating the injured party without delay or concern about payment.

4. Provider Acceptance: Providers have the choice to accept or decline an LOP. If they agree to treat the patient under the LOP, they must abide by the terms stated in the document, usually by refraining from sending bills or collection notices directly to the patient during the course of the case.

5. Responsibility of Parties: The injured party remains responsible for the medical bills outlined in the LOP. If the case is settled or a verdict is obtained, the attorney deducts the agreed-upon portion for medical bills from the total amount and pays the healthcare provider accordingly.

6. Legal Protection: LOPs provide legal protection for healthcare providers by ensuring they will not lose compensation if a patient's case is unsuccessful. They are valid legal agreements that allow providers to seek recourse through the legal system if necessary.

Overall, an LOP serves as a tool to facilitate medical treatment for injured individuals while ensuring healthcare providers are compensated for their services when they are unable to collect payment directly from the patient.