I am writing to inform you of an operational change to IRO’s Independent Legal Assistance and Review Scheme (ILARS) grant program.
IRO recently reviewed its current approach to payment of service fees to Medical Report Providers (MRPs) for Approved Lawyers (AL) requesting medical evidence using MRP’s proprietary platforms.
IRO will cease paying service fees for any services requested after 31 October 2024. Law firms may continue to use MRPs but, from this date, will be required to pay this fee themselves.
For those who continue to use MRPs, IRO will continue to reimburse disbursements, as per ILARS guidelines including medical reports and notes. Service fees from MRPs do not apply to Independent Medical Examination reports.
IRO acknowledges, for some law firms, this will impact changes to business operations.
Based on feedback, I note the following:
- Many Approved Lawyers were not clear why the service fee was charged, and the disbursements to which it was charged.
- Service fees are not charged when obtaining Independent Medical Examination reports via MRPs.
- Almost half of all law firms that receive ILARS funding do not use MRPs.
- Feedback from the consultation reinforced IRO’s concern that the current arrangements were not driving competition in the market. In some instances, IRO was being charged a higher service fee for ILARS matters than what Approved Lawyers were being charged for equivalent services in other personal injury matters.
Why is this happening?
IRO has identified the following issues:
- While historically IRO has paid this fee, including as a supportive extension measure during the COVID 19 pandemic, this was an operational decision. ILARS professional fees are already intended to compensate ALs for work done, including sourcing medical evidence.
- IRO is required to enter new contractual arrangements as the existing arrangements date from prior to the commencement of the Personal Injury Commission Act 2020.
- The current settings were not driving competition in the market and options to promote competition in the market whilst still paying the service fee would have created an unreasonable administrative burden for IRO to monitor compliance.
- With increasing demand for ILARS, IRO has determined it is more appropriate for individual AL and respective law firms to make business decisions around how they access medical evidence.
The planned review of ILARS Funding Guidelines in 2025 will provide an opportunity for IRO to further consider impacts.
Yours sincerely,
Jeffrey Gabriel
Independent Review Officer