In this week's Law Gazette - 'The cost of referrals'
09/09/2004
Thank you very much for all you did for us. Our lives are so much better through your help.
Barry, Doncaster
Following the recent outcry after a firm offered to pay GPs for referrals, Emma Smith business development and marketing director at Alexander Harris Solicitors discusses the benefits of professional alliances.
The
media have jumped on a law firm recently following an outcry from GPs
who had received a letter from Higgins & Co offering £175 for every
patient they successfully referred onto the firm (see [2004] Gazette, 2
September, 5). It has also been reported that other firms and legal
alliances have carried out similar practices.
The Law Society's
rules have changed this year, which means that solicitors can 'pay' a
third party for a referral. Many in the legal profession could argue
that this has come about as a result of the influx into the personal
injury market place of claims management companies. This influx has
resulted in hard times for many personal injury lawyers, who have been
forced to pay third parties for cases that traditionally may have come
to them for free.
The claims management companies have the
budgets and resources to attract large numbers of potential clients via
wide-ranging marketing communications. In addition, they are not
restrained by Law Society rules. Thus it became near-impossible for law
firms to compete on a level playing field. The legal marketplace was
caught standing still by claims management companies and this slowness
allowed these companies to gain a stranglehold.
This invasion
has also meant that firms have had to become much more inventive with
their own marketing techniques. This is a good thing, provided you know
your marketplace well. Clearly, on this occasion the approach had the
opposite effect to that of the good intentions of the firm in question,
which would suggest that the segmenting of the market and message were
not appropriately targeted - although I am certain they will have had
some positive replies too.
In many other commercial businesses,
there are reward schemes set up for referrers. I have no problem with
this - it is providing an additional service or added value for the
client, the referrer and bringing in business.
Where I think a
distinction needs to be made is that firstly it needs to be an open
process and the client needs to be made aware that any referral might
result in a payment to their medical adviser. In addition, the referrer
needs to satisfy themselves that as they are recommending someone they
are doing it for the right reasons - that it is in their patient's best
interests and that they are satisfied the lawyer they are recommending
is the best for the job in hand.
A level of independence can
also be brought in here by coupling an open personal recommendation
with a list of local firms approved by the Association of Personal
Injury Lawyers and who are members of the Law Society's personal injury
panel. This way it would ensure that the patient has choice, as well as
a list of those with recognised expertise.
Many doctors want to
be able to help their patients beyond medical advice by pointing them
in the right direction for additional assistance, but they don't know
where to start. Therefore, such an educative and open approach would be
beneficial for all concerned.
If someone is injured and needs
help and advice with regard to a legal claim, then medical
professionals are well placed to recommend to patients that they should
seek such assistance. Medical professionals and lawyers are really two
sides of the same coin - both interested in the welfare of their
clients - in getting the lives of their clients back together as
swiftly and effectively as possible.
Read the article in this week's Law Gazette
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