CASEpeer will take 1/3 of your Total Deposited Settlements and divide it amongst providers based on their Original Bills. This suggested amount can be helpful when negotiating liens.
Here is the equation used for the calculation:
[(original bill cost / total of all original bill costs) * (total settlement proceeds)] / 3
Here is an example for calculating Pro Rata Amounts on Original Medical Bills:
Provider A: Original Bill: 100
Provider B: Original Bill: 200
Provider C: Original Bill: 450
Total Settlement: 2000
The math would be as follows:
Provider A: [(100/ 750) * (2000)] / 3 = 88.88889
Provider B: [(200/750) * (2000)] / 3 = 177.77778
Provider C: [(450/750) * (2000)] / 3 = 400
You can also multiply the Total Settlement Amount by 0.3333333 or 33% then divide it by the Total Amount of the Medical Bills. Then, multiply that number by Each Individual Bill Amount to get Each Pro Rata Amount.
CASEpeer calculates the Pro Rata amount for you. You can use this formula if you would like to verify the calculations.
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