Bookkeeping and Accounting for Medical Malpractice Law Firms

Medical malpractice cases are among the most expensive matters a plaintiff’s firm can take on. Expert witnesses, medical record reviews, and lengthy litigation can require substantial investment years before a verdict or settlement. A&W Associates provides bookkeeping for medical malpractice firms that gives you a clear view of your case investments and keeps large settlement disbursements accurately recorded and documented.

Tracking Large Case Investments

We track every advanced cost by matter, including expert fees, medical reviews, depositions, and trial preparation, so you have a clear view of how much capital is deployed in each case and across your entire docket.

Litigation Financing and Lines of Credit

Many medical malpractice firms rely on case cost lines of credit. We record draws, interest, and repayments accurately and help you understand how financing costs affect the net return on each case.

Settlement and Verdict Disbursements

When a case resolves, we help prepare disbursement records, as directed by your attorneys, that account for attorney fees, reimbursed costs, medical liens, Medicare and insurer reimbursement claims, and the client’s net recovery. Every disbursement is documented in the client ledger.

Trust Account Reconciliation

Large sums demand careful oversight. We perform monthly three-way reconciliation of your IOLTA and trust accounts so your records are ready for review.

What We Handle for Medical Malpractice Firms

Case cost tracking by matter
Line of credit and financing records
Settlement and verdict disbursement documentation
Lien and reimbursement payoff tracking
IOLTA and trust account reconciliation
Payroll coordination
Monthly financial reports and tax-ready books

Why Medical Malpractice Attorneys Choose A&W Associates

Our team brings over 25 years of accounting experience and specialized training in legal bookkeeping. If your firm also handles general injury work, see our personal injury law firm accounting services. Contact us today to learn more.

How Fee Rules Shape Medical Malpractice Books in New York, Florida, Texas, and Illinois

In medical malpractice, the fee itself is often set by statute or constitution, and the calculation depends on how costs are recorded. A cost entered in the wrong place can change the fee. These are the differences that matter most in the largest malpractice markets. We serve firms in each of them remotely.

New York City, Long Island, Westchester, and Rochester

New York Judiciary Law §474-a limits contingent fees in medical, dental, and podiatric malpractice cases to a sliding scale: 30 percent of the first $250,000, 25 percent of the next $250,000, 20 percent of the next $500,000, 15 percent of the next $250,000, and 10 percent of anything over $1,250,000. The percentages apply to the net recovery after expenses and disbursements. For the books, that means every reimbursable cost has to be recorded against the right matter before the fee is computed.

Miami, Tampa, Orlando, and Jacksonville

Article I, Section 26 of the Florida Constitution entitles a medical liability claimant to at least 70 percent of the first $250,000 in damages and 90 percent of damages above $250,000, excluding reasonable and customary costs. Disbursement records for Florida malpractice settlements need to show how the client’s share was calculated under that formula, in addition to the closing statement required by the Florida Bar.

Houston, Dallas, and San Antonio

Texas Civil Practice and Remedies Code §74.301 generally limits noneconomic damages against physicians and individual health care providers to $250,000 per claimant. Because that cap affects what a case can be worth, Texas firms tend to watch their cost investment per case closely. Our matter-level cost reports give partners that number whenever they need it.

Chicago and Cook County

Illinois has no statutory cap on malpractice damages; the Illinois Supreme Court struck down the state’s cap in 2010. Chicago firms can carry very large case investments and receive very large recoveries, which puts pressure on cost tracking, line-of-credit records, and quarterly-or-better trust reconciliation under Illinois Rule 1.15A.

Medical Malpractice Law Firm Bookkeeping Near You

A&W Associates supports medical malpractice firms throughout Florida, Georgia, Alabama, and New Mexico, and works remotely with firms in Texas, Illinois, and New York. See our service area for the cities where we work with law firms, or contact us to ask about your location.

About A&W Associates

A&W Associates was founded by Angela Weicht, who brings over 25 years of financial and accounting experience, beginning in banking as a risk control specialist and fraud control analyst and continuing as an office manager and accounting manager for private businesses. The firm holds Certified Public Bookkeeper and QuickBooks ProAdvisor credentials and specializes in bookkeeping for law firms and nonprofits.