The Collateral Source Rule is Alive and Well

What ever happened to the Collateral SourceMedical experts can testify that the full amount of
Rule? It is alive; you just have to know how tothe bills is reasonable and necessary. Hanif and
implement it. Every California Attorney currentlyNishihama are avoided, and the Collateral Source
handling Personal Injury Litigation is all too familiarRule prevails.
with Insurance Companies routinely reducing, orNow that you know how to maximize the value
"Hanifizing", their client's medical bills. Insuranceof your client's case, the question is how to find
carriers are only willing to look at what is paid bydoctors who will perform pain management or
Health Insurance, not at the actual bills, the truesurgery on a lien basis. Many medical providers
value of the medical services rendered. Thisoffer such services, but some are much better
makes a huge difference in what is offered tothan others. One of the keys to maximizing your
settle claims. (See Hanif vs Housing Authorityclient's recovery is to get him the very best
(1988) 200 Cal App 3rd 635, Nishihama vs Citymedical care from the very best providers. Make
and County of San Francisco (2001) 93 Cal Appsure your doctor is Board Certified, is comfortable
4th 298)handling Med/Legal issues and is willing to testify
What's worse is that this practice is infecting theboth in a deposition and in court. Make sure the
litigation process. More and more when cases goamount charged by the Surgery Center or
to Trial, Judges are granting defense firms' HanifHospital is reasonable. Many less reputable facilities
Nishihama Motions in Limine. The result is thatinflate their charges by 200%-300% so that
Juries are limited to considering only the amountwhen the case settles and they offer a 20%
paid for medical services rather than the amountreduction in the bill, it sounds like a good deal. In
billed. When Juries are permitted to see the actualaddition to being highway robbery, obscenely
medical bills, most Judges, at a post trial Hanifinflated bills reflect poorly on even the
Hearing, slash the Jury award by the differencebest-presented case.
between the amount billed and the amount paidGetting the better doctors, hospitals and surgery
by the Health Insurance Provider.centers to take a lien on a 3rd party personal
You don't have to be handcuffed by Hanif. As ainjury case is difficult because they do not have
Personal Injury Trial Attorney, you can avoid thisto, and do not want to, be involved with
nightmare simply by having your client's medicalnegotiating and collecting liens. To avoid this, they
treatment done on a lien instead of through hiswork with companies like Medical Finance LLC,
her Health Insurance Provider. If you are confidentthat purchase receivables, along with all the rights
in your case and there is sufficient insuranceand interests, from medical providers. This allows
coverage to warrant it, there is very little risk tomedical providers to legitimately testify that they
having these services performed on a lien basishave been paid for their services, while preventing
since Health Insurance Providers invariably file liensdefense counsel from disclosing the factoring of
against Third Party PI Cases anyway. The benefit,the bill to the Jury (See Katiuzhinsky v s Perry
however, is enormous. When treatment is(2007) 152 Cal App 4th 1288). When the case is
performed on a lien, the real value of medicalresolved, the attorney negotiates the lien, not
services, not the artificial value given to them bywith the medical provider, but with the company
Insurance Companies, is brought into evidence.that now owns the lien.