Client Health Crises and their Impact on a Legal Firm’s Revenue

Client Health Crises and their Impact on a Legal Firm’s Revenue

A client's medical health can significantly impact law firm retention in several ways, particularly in practice areas like estate planning, personal injury, family law, and business law. Here are key ways client health affects retention:

1. Increased Attrition Due to Client Mortality

• Client Death Leads to Case Discontinuation: If a client passes away, ongoing legal matters (such as divorce, business contracts, or litigation) may be halted or reassigned to their estate representative.

• Transition to New Decision-Makers: In cases where a deceased client’s estate takes over, the law firm must establish a relationship with heirs or executors, which may not always result in continued representation.

2. Health Crisis Can Shift Legal Priorities

• Delays or Withdrawals: A client facing a severe medical issue may deprioritize legal matters, leading to delays or case withdrawals.

• Estate Planning & Guardianship Needs: Clients experiencing deteriorating health may shift legal services toward estate planning, power of attorney, and medical directives, requiring firms to adapt to changing client needs.

3. Financial Instability and Legal Service Affordability

• Medical Expenses Impact Legal Budgets: Clients facing serious health conditions may struggle with medical bills, making them less likely to afford ongoing legal services.

• Higher Risk of Unpaid Legal Fees: Health crises often result in financial distress, increasing the likelihood of unpaid invoices or terminated engagements.

4. Relationship Management & Ethical Considerations

• Need for More Empathetic Communication: Clients dealing with medical issues may require a different communication approach. Law firms that fail to show empathy and flexibility risk losing them.

• Confidentiality & Competency Issues: If a client becomes mentally incapacitated, attorneys must ensure that decision-making authority is legally transferred (e.g., via power of attorney) to avoid ethical conflicts.

5. Business Clients and Continuity Risks

• Corporate Clients & Leadership Changes: If a key client in a business setting experiences a health crisis, their role may shift, leading to potential firm attrition if their successor prefers a different legal team.

• Increased Risk in Small Businesses: Small business owners facing health crises may sell or dissolve their business, affecting long-term legal engagements.

TrustHouse can help mitigate these issues. We have programs and services to address nearly every type of healthcare-related situation, including:

• Post Surgical Care: Acute care situations (emergency or disease-related surgery) or elective (cosmetic, orthopedic, etc.).

• Travel Nursing (domestic & international): For clients with multiple homes or those traveling for pleasure who require clinical assistance or accompaniment.

• Live-In Services: 24/7 or 2x12 shifts for those who seek or require continuous support.

• Weekly Wellness Visits: “Bite-sized” introduction to homecare for those who are reticent offering peace of mind for families managing the care of aging parents.

• Mental Health Care: Discreet clinical supervision to support optimal mental and behavioral health treatment and ensure compliance with prescribed protocols.

• Pre/Post Natal Care: NICU-trained nurses to handle high-risk or standard deliveries and provide dual care for mother and child post-delivery.

• Pediatric Care: Expert care for children with life-threatening allergies, disease diagnoses, chronic conditions, or post-operative situations.

• Essential Access Membership: Annual membership offering bespoke services designed for future-focused, health-conscious individuals interested in a superior continuum of care. 

“Planning for the unplanned” should be part of regular client conversations to avoid a potential catastrophic situation. TrustHouse can serve as an all-in-one healthcare resource to ensure legal firms are protected, working with clients proactively and reactively to decrease the risk of further medical issues, hospitalization and even death.