The contingent Medical Malpractice fee is determined by applying the Net Award to a sliding rate scale. The Net Award is the total of Past Damages, Lump Sums and the value of Future Damages less Plaintiff's Litigation Expenses and the value of Collateral Source Offsets. The same total net of expenses is used to determine a fee rate to be applied.

The resulting amounts are totaled and divided by the Net Award to yield and overall fee rate.

The fee rate is then applied against the amounts net of expenses, except Collateral Sources to produce fee amounts and a valued Award, net of expenses and fees.

The initial monthly payments are then reduced by the expense and fee rates to produce the net first monthly payment for which the Defendant is liable. If there are Collateral offsets, the net first monthly payment is reduced by the related first monthly offset payment. The initial monthly offset payments are reduced by ongoing maintenance, before being applied against the element initial monthly payment.

In addition to the option to reduce the impact of taxes for Collateral Source offsets, there is an option to apply expenses and fees to the Award values prior to reduction for Collateral Source Offsets. There is little mention of how expenses and fees are to be applied, but as they represent costs of the full recovery, they should be allocated against the full recovery. This is accomplished by calculating the expense ratio without regard to offsets, and applying the rates to reduce the offsets.

All of this is done by the systems with minimal user involvement.