A new Medicare/Medicaid technology company is leveraging the fundamentals of litigation investment via SPAC, with billions of dollars on the line. MSP Recovery claims it differs from Omni Bridgeway and Burford Capital, in that the company funds and litigates its own cases. In turn, MSP’s focus is on a 50/50 split of awards received between itself and insurers who have overpaid Medicare/Medicaid expenses. MSP says it is sitting on a $1.5T portfolio, and forecasts $87B in recoverable claims.
An LFJ Conversation with Michael Kelley, Partner, Parker Poe
A new Medicare/Medicaid technology company is leveraging the fundamentals of litigation investment via SPAC, with billions of dollars on the line. MSP Recovery claims it differs from Omni Bridgeway and Burford Capital, in that the company funds and litigates its own cases. In turn, MSP’s focus is on a 50/50 split of awards received between itself and insurers who have overpaid Medicare/Medicaid expenses. MSP says it is sitting on a $1.5T portfolio, and forecasts $87B in recoverable claims.
Forbes reports that MSP is having trouble actually explaining the value of its corporate enterprise. Based in Florida, MSP Recovery engaged bespoke algorithms to locate claims that insurers billed to the government.
Before going public via SPAC, Forbes reports that MSP booked no revenue. In the Forbes feature, legal scholars suggest that the nature of placing values on litigation finance portfolios is more of assessing the value associated with risk.
Forbes notes that MSP has booked a limited amount of recoveries to date. MSP suggests that this is due to many factors, specifically that many of its cases are still in litigation.
