How are medical lien portfolio purchases priced?
A medical lien portfolio is priced from the cases behind the liens. Each lien depends on a personal injury case, and each case has a probability of recovery, an expected size and a duration that can be read from the record. The buyer values every lien on those three facts, then adjusts for the reductions that attorneys and payers typically negotiate.
Probability. Whether the underlying case recovers at all, judged by venue, case type, stage and counsel against how similar cases resolved.
Size and reduction. The expected recovery caps what the lien can collect, and liens are commonly negotiated down at settlement. A lien on a modest recovery is worth less than its face.
Duration. Cash received sooner is worth more. Liens on cases in fast venues are worth more than the same balance on a case likely to take years.
The book as a whole. Concentration in one attorney, one venue or one case type changes the price. A buyer reads the book for it.
Criterica Capital prepares single liens, whole books and forward flow of the liens a provider generates for independent capital providers. A written lien read comes first, and the provider can stop there.
Common questions
What does a provider send?
The receivable list: case reference, attorney, venue, case type, treatment dates and balance. No clinical detail is needed.
Can I sell only some liens?
Yes. Single liens, a segment or the whole book can be sold.
Does the provider still deal with the attorneys?
Under a purchase, no. Under financing, the provider keeps the relationship.
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