Our executive team brings diverse experience from industries spanning healthcare, insurance, legal and financial services. PFD Capital Partners is headquartered in Modesto, CA with marketing offices in Lake Forest, CA, and provides investigative, origination, underwriting, auditing, packaging, funding, and servicing services throughout the U.S.
Each week, medical providers across the US count on PFD to fund thousands of medical account receivables. These providers offer services to injured victims on a lien or letter of protection basis as part of a personal injury claim. All providers are independent and have no ownership stake in PFD.
Medical providers assign the personal injury account receivables to PFD who then maintain the accounts until case resolution. PFD communicates with the patient’s attorney for payment of the incurred medical charges at settlement. The charges represent the direct medical charges only. PFD does not provide funding for litigation or patient recovery costs.
WATCH OUR VIDEO TO SEE HOW IT WORKS >>
Want to learn more? Register now for access to the Member’s Portal:
Understanding The Market
1.
What Is A Medical Receivable?
When a medical service provider (MSP) provides medical services to a patient, until the bill has been paid, that bill is called a Medical Receivable. That receivable is an asset, and that asset resides on the MSP’s balance sheet as an asset until it is paid or written off.
2.
Types of Medical Receivables.
There are several different types of medical receivables ranging from cash patients to Medicare, Medical, and other state-sponsored programs to Private insurance payers (PPO and HMO) to Worker’s Compensation coverage and Personal Injury litigation-related account receivables. Each has many different features, advantages and benefits, and varying different requirements and timelines for successful navigation to settlement.
3.
PFD and Medical Receivables.
PFD deals exclusively with Personal Injury-related account receivables assets. PFD only endeavors to operate inside its core competencies and skills in the Personal Injury Account Receivables sector.
Our Process
The Personal Injury (PI) industry is highly fragmented because most PI cases involve a specific sub-segment of personal injury law which varies from city to region to state. As a result, most mitigation professionals, including lawyers and consultants, operate on a local basis that specializes in niche fields to be profitable in their specific marketplace. Since PFD purchases only that portion of the PI Medical Receivable (MR) that relates to the medical treatments required to restore the patient to the status quo, and not the litigation or patient pain and suffering, PFD has been able to create a proven process that has allowed them to be effective in a larger market space that would ordinarily not be possible for most PI industry professionals. PFD has been processing institutional medical accounts receivables since late 2012 and has become very precise and effective at sourcing, vetting, billing, and collecting. The PFD processing and underwriting team sources and processes only those cases where there is a clear path to settlement. Currently, PFD has a footprint in 15 states and is targeting an additional five states in which to become active.
STEP ONE: Finding the MSP’s suitable for relationship with PFD
PFD is constantly researching and identifying PI MR accounts that are a good fit for its program. Research is concentrated into two fields of inquiry:
MEDICAL |
LEGAL |
| • Private Practice Providers | • Private Attorneys |
| • Surgical Centers | • Legal Firms |
| • Hospitals | • Court Records |
| • Diagnostic Labs | • Patient Medical Documents |
STEP TWO: Corporate and Compliance Underwriting
Once a PI MR has been determined to be a potential asset for PFD, the company begins a very thorough investigation and audit of the PI MR Seller before entering a discussion of underwriting the PI MR.
PFD PERFORMS the PROVIDER CORPORATE UNDERWRITING INCLUDING:
- State Legal Climate
- MSP Corporation Verification
- Legal Structure
- Lien/UCC Search
- Principals and Backgrounds
- Billing and Collection History
- Settlement History
- Patient Processing Protocols
- Facility Site Visit
STEP TWO-A: Medical Underwriting
In conjunction with the research into the Selling entity, PFD performs extensive research into all the legal components related to the assets in the PI MR portfolio being considered. This can include:
- The entity’s process for a case evaluation.
- The assigned attorney’s history and reputation.
- The firm’s focus and experience.
- The case’s date of injury.
- The case’s date of filing.
- The estimated damages.
- Examination of insurance coverage and previous claims.
- Determination of fault.
- Medical history of the patient.
- PTP/Surgeon notes and causation.
STEP TWO-B: Legal Underwriting
In the Underwriting and Auditing process is the examination of the MI PR Selling entity. This process can include:
- Research of the MSP’s legal situation.
- Verifying the entity’s corporate structure and history.
- Performing a site visit.
- Performing a Lien/UCC search.
- An examination of the entity’s financial status including its capitalization and management tables.
- Examining the entity’s collection and settlement history.
- Evaluation of the related patient files.
- Verifying the entity’s write-off/ write-down rate.
STEP TWO-C: Injured Party Underwriting
PFD conducts extensive research and underwriting compliance for each of the PI MR assets in the portfolio as it relates to each specific patient. This process includes:
- Evaluation of Authorization Letters.
- Establishment of a Business Associated Agreement.
- Securing a Letter of Protection
- Execution of a lien on the PI MR case.
- Confirmation of the related Statue of Limitations clock dates and protection.
- Confirmation of an Assignment of Benefits
- Examination and research into all patient-related demographics, medical history, and physical questionnaires.
- Auditing of the patient’s ledgers, medical provider notes, prescriptions, billing codes, and multiples.
STEP THREE: Analytics and Contracts
PFD will perform an analysis of the MSP’s document handling, and processing, as well as an analysis of past billing and collection history. Once a PI MR has been assessed to be viable for PFD, the contract negotiation and preparation is done. This process includes:
- Creation of the purchase agreement(s).
- Listing of the representations and warranties.
- Display of all exhibits.
- Provision for the securitization of the contract.
STEP FOUR: Funding and Payments
At this step, once the contracts are in place, PFD provides the negotiated purchase fee to the PI MR seller. PFD then interfaces with the seller to collect, classify, verify, and organize the required documents necessary to service, monitor, and collect the settlement proceeds at the case’s conclusion. The documents are entered into the PFD proprietary third-party administration platform. The transaction is then closed and funded.
STEP FIVE: Billing, Statusing, Servicing and Collection
PFD begins the servicing and notating status comments to the cases and documenting the progress of the case, including:
- Verification of docket numbers.
- Preparation and communication of demand letters.
- Packaging for presentation to the attorney securitization support.
- Delivery of all forms and notices to the attorney handling the case.
STEP SIX: Payment and Reconciliation with Capital Providers and Other Stakeholders
Once the PI MR has been closed and collected, PFD provides the payment and reports to the capital providers. Depending on the structure of the capital provisioning, the payment and reconciliation process can include:
- Reconciliation of the payment agreement.
- Creation of the financial reporting.
- Preparation and delivery of the payment.
- Final review and audit of the complete PI MR case.
- Preparation and filing of the final report.
Through each of these steps, the PFD Management Team is hands-on with guidance and supervision; making sure all the standards of compliance and processing are maintained to ensure the privacy and security of the process, PFD maintains a cloud-based HIPPA-compliant server that handles all the underwriting communication, document migration and sharing, contract signing, and payment and funding processes.
Want to learn more? Register now for access to the Member’s Portal:
DID YOU KNOW?
The PFD Management Opportunity Fund 3001, LLC is a “Core Portfolio” project, and is not tied to any of the broader market indexes like mortgage or lending rates, public equities or bonds, interest rates, housing starts, refinancings, automotive or digital currencies.
WHAT PFD Management, LLC Offers:
TO THE PATIENT
- The highest level of care
- Reliability
- Geographically close
- Highly vetted providers
- Accountability
- Treatment auditing
Confidence and peace
THAT THEIR NEEDS ARE BEING MET
WHAT PFD Management, LLC Offers:
TO THE ATTORNEY
- Reliable access to the best patient care
- Pristine underwriting
- Consistent documentation
- Transparency with treatment plans
- Accessibility and progress reports
- 24/7/365 Cloud-based documentation access
- Security and compliance confidence
- Fairness
Prosecution Partnering
To help them meet their client’s goals
WHAT PFD Management, LLC Offers:
TO THE PHYSICIAN/MSP
- Better patient outcomes
- Risk mitigation
- Compliance
- The legal community comforts
- Investor/Medical profits
- Access to great treatment
- Cost savings
- Value-added capital provider
- Higher net profits
- Simplified processing
Freedom to do what they do best
HEAL THEIR PATIENTS
WHAT PFD Management, LLC Offers:
TO THE INVESTOR
- High Yield (ROI)
- Quarterly cashflow
- Excellent Backend Waterfall (IRR)
- Multiple additional exits (increased ROI)
- High -touch communication
- Demonstrable honesty
- Consistent transparency
- Timeliness execution
- Full disclosure
- Fairness
ROI Performance they can count on to
ACHIEVE THEIR FINANCIAL GOALS
Want to learn more? Register now for access to the Member’s Portal:
PFD – A TRUSTED PARTNER
PFD has been building relationships with healthcare providers, and private and institutional capital investors across a broad spectrum of services. These include private physicians, medical groups, sports-medicine providers, surgical centers, and more.
In all these relationships, the healthcare provider understands the importance of maintaining a balanced accounts receivable ledger that permits them to have cash flow and liquidity to maintain their operations and grow their businesses.
PFD has become a trusted partner in helping the provider achieve those goals by organizing their underwriting protocols and then purchasing their select qualifying personal injury-related medical account receivables assets. This relationship of underwriting and purchasing allows the provider the ability to liberate profits that are otherwise idle until settled at the close of the Personal Injury case.
The healthcare provider wins because he realizes immediate cash flow for his work.
The patient wins because they now have access to a wider group of Personal Injury providers.
The Investor wins because he has a higher than normal yield and quarterly cash flow without the broader market influences (Stock market, Interest rates, and Property Value Swings).
High-level securitization and risk mitigation… a win-win-win combination.
READY TO TAKE A DEEPER DIVE?