BlogUncategorizedStructured Settlements and Medical Malpractice

Structured Settlements and Medical Malpractice

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If you or a loved one has been the victim of medical malpractice, you understand the long road of recovery ahead both physically and financially. Medical negligence can cause severe injuries with impacts that last a lifetime. The complex legal process and settlement options only add to the uncertainty.

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Structured settlements provided by funding experts like Fairfield Funding offer customized financial solutions for malpractice victims. Regular payments over many years account for both current and future costs in a way no single lump sum could. This article will explore the role structured settlements play in resolving medical malpractice cases and how customized scheduling can provide long-term support during recovery.

What is a Structured Settlement?

A medical malpractice settlement provides payments from an initial settlement amount to an injured party over an extended time period. Rather than receiving settlement funds in one immediate lump-sum payment, the money is paid through a customized schedule of regular payments. These tax-free payments are backed by annuities purchased from highly-rated life insurance companies to ensure future income.

Structured settlements first emerged in the 1970s as a way to provide long-term support for injury victims. Over decades of use, they have proven to be a secure method for receiving settlement funds that protect recipients from having to actively manage investing risks. The timeline and amount of payments can be adjusted to address both the current costs and future medical needs.

The Benefits of Medical Malpractice Settlements

There are numerous advantages structured settlements provide, especially for victims of medical malpractice who often face long recovery timeframes:

  • Tax-free income at state and federal levels
  • Conservative fixed-income investments minimize risk
  • Custom scheduling aligns with medical costs and lost wages
  • Protects funds from market volatility and mismanaging risks
  • Payments continue even if the recipient dies prematurely
  • Special considerations can be made for minor patients

The tax-free status provides immense value over decades of payments. By avoiding taxes, more money goes directly to supporting medical costs and everyday living expenses. Rather than burdening victims with investing risks, structured settlements provide reliable fixed payments over time.

Custom Scheduling Aligned with Needs

One of the biggest benefits of structured settlements is the ability to customize payment schedules. The timeline, frequency, and amounts can all be adjusted to address both immediate and future medical costs.

Payments usually begin with an upfront amount to cover current medical bills and help pay legal fees. The schedule then continues with regular ongoing payments over years or even decades. These future payments account for medical complications that may develop, replacement income for lost wages, daily living assistance costs, and more.

In some cases, specific lump sum payments can be scheduled for anticipated major life expenses. For example, a large payment could be set for when a child victim reaches college age.

Working with settlement consultants, each case can be tailored to the victim’s needs in a way no single lump-sum check ever could.

Why Structured Settlements Work for Medical Malpractice Cases?

Medical negligence can cause severe injuries with lifelong impacts. Some cases result in permanent disability.

Long-term care, loss of mobility, and reliance on medications mean expenses will continue mounting over decades. Unforeseen complications or secondary conditions may arise at times as well.

Given modern advancements in healthcare and patient lifespans, many malpractice victims face living decades with disabilities requiring frequent medical and home care support. As health declines, costs tend to increase over time too.

Unfortunately, malpractice-related injuries also often reduce the ability to earn income through employment. Victims experience decreased earnings capacity coupled with skyrocketing medical bills.

All of these factors demonstrate why structured settlement Payments are particularly useful arrangements for malpractice cases. One lump sum payment cannot realistically support 30+ years of mounting expenses. Regular ongoing tax-free payments structured around an individual victim’s needs provide long-term financial support through recovery and beyond.

Navigating Child Victim Settlements

When medical negligence affects children, extra considerations come into play when structuring a settlement. Since birth-injury malpractice can impact a child’s entire life, the structured settlement timeframe stretches even longer. Funds must support everything from daily medical costs to future college savings plans.

In these cases, regular payments are made to guardians during childhood. Once the injured individual reaches adulthood, a larger scheduled payment provides funds they now manage themselves.

Given the complexity of properly structuring funds, legal guidance from experts in injury law is highly recommended when injured minors are involved.

Settlement Considerations in Medical Malpractice Cases

In order for a medical malpractice lawsuit to result in a settlement, the plaintiff’s attorney must demonstrate that negligence directly caused injury and damages. The evidence and testimony requirements create a high burden of proof.

It must be clearly shown through records and medical opinion that substandard medical care resulted in the injury. Expert testimony is usually required to establish breaches in standards of care by the healthcare provider.

If both causation and negligence can be demonstrated, the case may result in a settlement before even going to trial. In these out-of-court agreements, structured settlement arrangements are often highly recommended. They provide security through fixed payments backed by reliable funding structures.

How Do Medical Malpractice Claims Work?

Here are the typical steps involved in securing a structured settlement for a medical malpractice case:

  1. The attorney demonstrates negligence and causation
  2. Settlement negotiations begin between parties
  3. The final settlement agreement reached
  4. Defendants supply initial lump-sum payment
  5. Structured settlement company supplies annuity quotes
  6. Attorney and plaintiff decide specifics of the payment schedule
  7. Annuities are purchased to fund future payments
  8. Plaintiff signs the release form and structured payments begin

It’s important to know that once annuities are secured to fund a structured settlement agreement, the payment schedule cannot be altered. The regular payments must occur as originally structured. This demonstrates again the importance of customizing schedules around individual plaintiff needs from the start.

Why Work With Fairfield Funding for Your Structured Settlement?

  • 30+ Years Of Experience

With over 30 years exclusively dedicated to structured settlements for injury and malpractice victims, Fairfield Funding delivers expertise and compassion to these difficult cases. Our team focuses only on securing customized structured settlements, so we are specialists in this field.

  • Familiar With Various Cases

The long tenure of Fairfield Funding has enabled us to form strong relationships with the highest-rated structured settlement annuity carriers. We have successfully funded billions in payments over decades. This experience equips us to handle sizable, complex cases while still tending to each client with personalized care and attention.

  • Highly Skilled Team Of Financial Advisors

We also take pride in having a large team devoted to structured settlements. With settlement consultants available across the United States, you work directly with a specialist familiar with local laws, trends, and options relevant to your unique case. We will take the time to understand your situation and needs before structuring a settlement schedule customized around them.

  • We Work In Your Interest

Fairfield Funding never charges any fees or commissions related to our work in securing structured settlements. Our payment comes directly from the annuity provider once securing the structured payment schedule for a client. This fee coverage means injury victims keep more of their settlement to directly support their needs.

We are also members of the National Structured Settlements Trade Association (NSSTA). Strict adherence to ethical regulations and continuing education requirements enables us to operate with integrity while staying updated on the latest developments in structured settlements.


If you or a loved one experiences injury from medical negligence, it can turn your life upside down emotionally and financially. The legal process just makes things more complicated for you when you are already under great strain. Deciding how to receive any settlement money has huge long-term impacts.

Structured settlements set up by specialists like Fairfield Funding provide customized stability when you need it most. Payments are scheduled around your unique situation to support you through recovery and beyond in a way one lump check could never do.

If you have concerns with any sort of medical malpractice claim, contact Fairfield Funding today!
Our caring team with over 30 years focused on these cases will work to structure settlement funds to meet your needs now and in the future. You can feel confident our scheduled payments will provide long-lasting financial support during your recovery.

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