Medical Justice provides free consultations to doctors facing medico-legal obstacles. We have solutions for doctor-patient conflicts, unwarranted demands for refunds, online defamation (patient review mischief), meritless litigation, and a gazillion other issues. We also provide counsel specific to COVID-19. If you are navigating a medico-legal obstacle, visit our booking page to schedule a free consultation – or use the tool shared below.

The world has changed.

Once upon a time, you would perform a service for a patient, perhaps surgery, and you’d be paid. You might be paid by personal check. By credit card. Or even cash. And that would be that.

Now, much more frequently than in days past, some patients feel entirely comfortable initiating a chargeback from their credit card company. Even if objectively the result was good – even excellent.

This is maddening.

What to do? What to do?

Once notified, make sure you have submitted everything the credit card company needs to properly adjudicate the chargeback in your favor. Do not ignore the deadline to respond. The credit card company doesn’t need much. Mostly a treatment plan that you were going to do “X” for “$Y.” The patient understood this plan and signed on the bottom line. You did “X” on this date, and the result was at or above the standard of care. You can send the appropriate amount of information from the chart to assist with your argument without running afoul of HIPAA. Addressing financial disputes is one domain where you do NOT need the patient’s signed authorization to disclose protected health information. Odds are reasonable the sequestered funds will be returned to you.

Note, you should probably include in such treatment plans a statement that no refunds or rebates will be tendered. If such language is missing, it creates wiggle room for a credit card company to deny your defense.

If you do not prevail, you may have an opportunity to appeal the disappointing ruling with the credit card carrier.

If that fails, you can file a claim in “real court” or small claims court arguing breach of contract. Real court is more labor-intensive but allows you to recoup all funds plus non-attorney expenses. Small claims court is simpler but caps out at low values. Each state is different and establishes different caps. Texas has one of the largest caps, at $20k.  You can always have an attorney write a nasty letter threatening to go to court and see if the conflict can be resolved short of the inevitable “cage fight in court.”

You can send the patient to collections. They will only potentially recoup a percentage of the outstanding debt. But the patient’s credit score may be dinged whether the agency collects anything or not. Such a credit score ding can equate to thousands of dollars if that individual tries to buy a new house or car or refinance an existing home.

If you do have to write this off as bad debt, you can send the patient a 1099 form (after you follow a formal process for declaring this as bad debt). The patient will be required to pay federal and state taxes on this as income. This strategy does not help you recoup any funds. But it will mean the patient’s payday is even less, as they will have to write a real check to the federal and state treasuries.

A chargeback is not the end of the process. Generally, you have options. The question is how much time and effort should be spent on recouping the funds you are owed. The larger the number, the easier it is to justify the time and labor commitment.

Medical Justice provides free consultations to doctors facing medico-legal obstacles. We have solutions for doctor-patient conflicts, unwarranted demands for refunds, online defamation (patient review mischief), meritless litigation, and a gazillion other issues. We also provide counsel specific to COVID-19. If you are navigating a medico-legal obstacle, visit our booking page to schedule a free consultation – or use the tool shared below.

Learn how Medical Justice can protect you from medico-legal mayhem… 

Jeffrey Segal, MD, JD

Chief Executive Officer and Founder

Dr. Jeffrey Segal, Chief Executive Officer and Founder of Medical Justice, is a board-certified neurosurgeon. Dr. Segal is a Fellow of the American College of Surgeons; the American College of Legal Medicine; and the American Association of Neurological Surgeons. He is also a member of the North American Spine Society. In the process of conceiving, funding, developing, and growing Medical Justice, Dr. Segal has established himself as one of the country’s leading authorities on medical malpractice issues, counterclaims, and internet-based assaults on reputation.

Dr. Segal was a practicing neurosurgeon for approximately ten years, during which time he also played an active role as a participant on various state-sanctioned medical review panels designed to decrease the incidence of meritless medical malpractice cases.

Dr. Segal holds a M.D. from Baylor College of Medicine, where he also completed a neurosurgical residency. Dr. Segal served as a Spinal Surgery Fellow at The University of South Florida Medical School. He is a member of Phi Beta Kappa as well as the AOA Medical Honor Society. Dr. Segal received his B.A. from the University of Texas and graduated with a J.D. from Concord Law School with highest honors.

In 2000, he co-founded and served as CEO of DarPharma, Inc, a biotechnology company in Chapel Hill, NC, focused on the discovery and development of first-of-class pharmaceuticals for neuropsychiatric disorders.

Dr. Segal is also a partner at Byrd Adatto, a national business and health care law firm. Byrd Adatto was selected as a Best Law Firm in the 2021 edition of the “Best Law Firms” list by U.S. News – Best Lawyers. With over 50 combined years of experience in serving doctors, dentists, and other providers, Byrd Adatto has a national pedigree to address most legal issues that arise in the business and practice of medicine.