SAMPLE OF MATTER TYPES: Worker Compensation
LENGTH OF TIME IN PROGRAM: 41/2 years ongoing
NATURE OF ASSIGNMENT: Analyzed emerging legal invoices (fee and expense entries) from law firms to determine if they were billed in accordance with client guidelines, accepted industry practices or benchmarks; were being performed at the appropriate staff level; and were reasonable in relation to the type of work being performed. In addition, LCC attorneys determined, analyzed and reported any anomalies, irregularities, and other observations as appropriate. LCC prepared and submitted final invoice payment recommendation reports to the bill payers. Also, participated in discussions with the client regarding those findings and recommendations. As a result, the law firms agreed to substantial reductions from its billings.
OUTCOMES: 3.9% reduction. Total legal fees = $8.2 Million.
CHALLENGES: Workers compensation generates legal bills that are small in terms of costs but numerous. This creates a logistical problem regarding processing numerous small legal bills efficiently and profitably. LCC’s system and process was leveraged, including auto coding, to initiate and sustain a successful legal fee cost control program.
PRICING CHALLENGES: This client charges its law firms a “processing fee” that equals LCC’s fee to the client; see, the “Pricing Challenges” note below.