Following the recent outcry after a firm offered to pay GPs for referrals, Emma Smith 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.



Emma Smith is the business development and marketing director at Altrincham-based Alexander Harris Solicitors