How Missing Medical Records Delay Claim Settlements?

Medical records have a significant place in insurance claims process or legal cases for personal injury, worker’s compensation or medical malpractice. Medical records are the back bone of a claim. They provide essential documentation of injuries, treatments, and medical history, which are critical for validating claims and determining the compensation amount. However, missing medical records can significantly impact the outcome of an insurance or legal claim, leading to delays, disputes and even denials. They can form a dubious cloud over the validity of the injuries and claim, resulting in delaying claim settlements.

In this blog, we will explore the various ways missing medical records can affect legal and insurance claims and offer strategies to mitigate these issues. Before going into the core of this blog, let’s first know the various factors leading to missing medical records.

Importance of Medical Records in Claims

Medical records are the foundation of any personal injury or health-related claim. They provide crucial evidence to show the nature and extent of the claimant’s injuries, the treatments received, and the prognosis for recovery. If any of these medical records go missing, it becomes difficult for the insurance companies, attorneys, and courts to evaluate the credibility and value of a claim.

The injury or insurance claims often include the below listed medical records:

• Diagnosis reports on the injury or illness.
• Treatment record detailing all medical care, therapies and prescriptions.
• Test results, including X-rays, MRIs and other imaging studies.
• Physician notes outlining the recovery progress and lasting impairments.
• Prognosis reports that determine the long-term impacts of the injury or illness.

If any part of these documentation goes missing or incomplete, it becomes challenging for claim adjusters or attorneys to assess the severity of the injuries and calculate the deserving compensation.

Without a full set of medical records, it would be difficult to:

• Prove the severity of claimant’s injuries
• Prove how the injuries are linked to the accident
• Establish the necessity of any medical treatments or procedures
• Support claims for long-term or permanent disability

Common Causes of Missing Medical Records

Many factors can lead to missing medical records. Let’s see the most significant factors leading to missing medical records here:

• Out dated medical records: Facilities are required to destroy medical records after the mandatory retention period. Such records will be missing during the time of claim.
• Clinical negligence: Healthcare providers might fail to properly document or maintain records, leading to omissions in critical information.
• Improper record management: Poor management or loss of records due to administrative errors can end up in missing records.
• Lost test results: Providers might misplace or fail to record diagnostic test results.
• Illegible handwriting: Unclear or poor handwriting in medical records can lead to misinterpretation or loss of medical information.
• Incomplete data: Missing imaging details or other vital information.
• Technical glitch: Technical issues can affect data collection and storage.
• Neglected information: Failure to record relevant patient information such as family history or allergies.
• Human errors: Human error and inadequate systems are common culprits behind missing records, highlighting the need for robust record-keeping practices.
• Records lost in transit: During transit one or more records can be lost if not careful.
• Inaccessible due to healthcare provider changes: If the healthcare provider closes or relocates the facility, accessing old records might become difficult or impossible.
• Failure to request the correct records: Plaintiffs or their legal representatives might fail to request all medical records pertaining to the claim.
• Delays in record retrieval: Any delay in processing the medical record retrieval in healthcare facilities can lead to extended delays in the claim settlements.

What are the impacts of missing medical records in claim settlements?

Delayed claim processing

Insurance companies rely heavily on medical records to assess the validity of a claim. When records are missing, it can lead to significant delays as insurers request additional documentation or verification. This can prolong the claim process, causing frustration and financial strain for claimants who are waiting for their settlement.

Even in the case of legal claims, missing records can be like a puzzle with missing pieces. Attorneys cannot comprehend the entire picture of the claimant’s medical journey. This prevents them from building strong arguments to win claims.

Difficulty in proving causation

One of the most vital aspects of a claim is proving that the injuries directly resulted from the incident. Missing records can complicate this process, especially if the medical treatment started days or weeks after the incident. The gap between the injury date and the start of treatment may raise red flags for insurance companies and the defense, who could argue that the injuries were not caused by the accident in question.

If the necessary records to connect the accident and injury are not available, the claimant may be forced to provide additional evidence, seek out supplementary medical opinions, or even undergo more medical evaluations—all of which can take time and delay the claim settlement.

Challenges in proving continuity of care

For a successful insurance claim, it is often necessary to demonstrate the continuity of medical care. Missing records can disrupt this chain, making it difficult to prove that all treatments are related to the injury in question. This can weaken the claimant’s case and reduce the likelihood of a favorable outcome.

Prolonged negotiations and lesser settlement offers

When medical records go missing, insurers might hesitate to make a fair settlement offer, as they cannot gauge the extent of injuries and estimate the costs associated with them. This can prolong the negotiations, or result in lesser settlement offers, expecting more documentation to substantiate the claims.

In some cases, the necessity and reasonability of certain treatments cannot be proved with evidence, as the insurers and the defense may argue that the treatments are not necessary and indicated in the reports. Collating additional documents to prove the legitimacy of injuries may prolong the negotiation and settlement process.

Reduced compensation

Incomplete medical records can result in lower compensation amounts. Without comprehensive documentation of all medical treatments and the extent of injuries, insurers may undervalue the claim. This can leave claimants with insufficient compensation to cover medical expenses, lost wages, and other related costs.

Missing medical records can be used against the claimants in legal claims. The defense may argue that the claimant had not received continuous care proving that the injuries are not severe as claimed. This can even question the credibility of the claimant’s injuries.

Increased risk of claim denial

In some cases, missing medical records can lead to outright denial of the insurance claim. Insurers might argue that the documentation makes it impossible to verify the legitimacy of the claim. This can be problematic in cases where injuries are severe and the need for compensation is urgent.

Legal claims may be rejected or end up in defense verdicts, if the missing records prevent the attorneys from substantiating claims.

The Role of Medical Record Retrieval Services

To avert the potential delays due to missing records, insurers and attorneys can leverage the aid of medical record retrieval services. These services specialize in obtaining, organizing, and summarizing medical records for personal injury attorneys and insurance providers. By ensuring that every piece of medical documentation is accounted for, these services can significantly speed up the settlement process.

The major benefits of using a medical record retrieval service include:

• Faster retrieval: These services have the expertise and networks to quickly gather medical records from various healthcare providers.
• Comprehensive records: They can ensure that all relevant documents are included, reducing the likelihood of delays.
• Organized presentation: A well-organized set of medical records makes it easier for legal teams and insurance companies to review the claim, accelerating the settlement process.
• Cost-effective: The use of a retrieval service can save both time and money in the long run by avoiding delays that might otherwise result in prolonged litigation.

LezDo TechMed enables medical record retrieval reliable and quick, ensuring that no record pertaining to the claim is missed. Understanding the value of medical records in handling legal and insurance claims, we assure that all vital medical records are retrieved and organized for easy access.

To put it briefly, missing medical records can have a significant impact of insurance and legal claims. They can affect every step from claims processing to the final compensation. By understanding the challenges missing medical records can pose in insurance and legal claims, we can implement strategies to address the issues. This can enhance the chances of faster claims processing and timely settlements. Comprehensive and accurate medical records are essential for validating claims and ensuring that claimants receive the compensation they deserve.