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Legal Bill Review

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What is Legal Bill Review?

Legal bill review (LBR) is the practice of reviewing legal spend, such as law firm invoices, to avoid billing errors. In layman’s terms, this process mitigates the risk of companies overpaying for legal services, and is a crucial element of enterprise legal management and cost containment. An error is determined to have occurred if a line item within a legal invoice is not compliant with the billing guidelines agreed to between a company and its law firm, or group of law firms. In the event of billing errors being found through legal bill review, legal spend is reduced by correcting the errors and thereby reducing or removing the affected line item’s cost and the associated invoice total.

An organization‘s legal bill review process plays a vital role in litigation spend management and cost containment. LSG’s team of legal bill review experts and in-house lawyers perform a comprehensive analysis of legal invoices and legal bills across different jurisdictions, matter types and complexities. Our LBR team is supplemented by machine learning empowered software, allowing our team to turn around legal bills in less than 24 hours, if required.

What is the Cost of Legal Bill Review?

Typically, legal fee auditors charge a significant percentage (~2.5%) of each invoice for legal bill review services. This gets expensive, and though legal bill audit itself saves you money, that’s no reason to overpay. With LSG’s public and transparent pricing model, unlike competitors, we offer a net savings guarantee and a price beat guarantee. This means that you will guaranteed save money on pre-existing operational costs by choosing LSG as your legal fee auditor. Whether you have an in-house legal bill review team or already outsource, LSG can help you generate meaningful savings, beating the performance of our legal bill audit competitors on both pricing and on savings result.

As an example of how LSG’s legal fee auditors are deployed, we worked with a top 3 global P&C insurance firm to reduce their legal spend. Before working with LSG, the insurer was in a client relationship with one of the competitors listed in our comparison sheet below. Switching to LSG saved the insurer an additional 2.9% on each invoice, culminating in total savings of 11.8%, an excellent result. In addition to this, however, we also priced our legal bill review more affordably, even with our improved performance over the competitor. The result for the client was ~7x ROI compared to the previous vendor’s ~3x ROI, resulting in meaningfully a higher bottom line profit improvement.

Free 24/7 support Yes No No Yes
Artifical intelligence Yes Yes No Yes
Advanced analytics Yes Yes Yes Yes
Transparent pricing Yes No No No
Pricing structure 1% of spend % of spend, e.g. 1.5-2.5% % of spend, e.g. 1.5-2.5% % of spend, e.g. 1.5-2.5%
Savings guarantee If no net savings, LSG's fee is waived No Yes No

How does LSG implement Legal Bill Review?

To implement legal bill review and its best practices into an organization, LSG activates a software and human legal bill review team hybrid. We work to control your legal spend across property & casualty (P&C), workers compensation (WC), and medical claims. Our best practices for legal bill review are based on almost two decades in the enterprise legal management industry, saving Fortune 500 clients and beyond over half a billion dollars on invoices with our LBR and ELM services.

Our legal bill review service can be used to review submitted invoices on clients’ pre-existing systems or on our Mercury Enterprise Legal Management (ELM) Software for ongoing litigation and/or for closed cases or matters. Not only does our legal bill review service reduce the burden of meticulously reviewing "line items" of the legal invoice, but it also enables the client to take informed business decisions concerning litigation spend and supplier performance. Paired with a versatile LEDES-compliant legal billing software, such as Bilr, billing compliance can be improved to near 100% of your requirements, or service level agreements (SLAs).

The primary focus of the LSG LBR team is to ensure adherence to billing terms agreed between the client and suppliers, with the goal of preserving good relations always in mind. Get in touch with us to figure out how legal bill review can help decrease your organization’s legal spend while increasing transparency and billing compliance. We work with you as a partner, not as a supplier, and we guarantee a high-quality legal bill review service that will make an impact on your legal spend.


Picture of animated computer screen containing red shield with the LSG logo,surrounded by invoices for legal bill review.

The Legal Bill Review Whitepaper

Find out if legal bill review is right for you by reading our LBR whitepaper, outlining considerations before deciding on a legal bill review outsourcing partner such as LSG.

Get Whitepaper >

Key Features of Legal Bill Review:

  • LSG’s legal bill review service improves invoice compliance against the client’s service level agreement (SLA) and billing guidelines, creating cost savings and lowering legal spend.
  • LSG’s LBR team delivers accurately validated legal bills by correcting mathematical data and more, such as “timekeeper rate”, “duplicates”, “expense caps”, “approval requirements”, etc.
  • LSG provides analytics reports on law firm performance, guideline non-compliance, activity and expense bill analysis, and more throughout the process of its legal bill review implementation.

Benefits of Legal Bill Review

  • Cost and Pricing Structure

    LSG’s legal bill review pricing structure is based on a 1% value of total legal spend. Our competitors typically range from 1.5% to 2.5% of spend. The net effect is much higher ROI for LSG’s bill audit clients.

  • Quality and Results

    LSG’s quality management system and ISO 9001 certifications mean that we operate within a framework of “quality first”. Our legal bill review service also delivers consistent results equal to or greater than that of your current service provider while offered lower cost, guaranteed.

  • Plug & Play

    LSG's legal bill review service is delivered via a fast-track deployment model, meaning that set-up and implementation is typically completed within a few weeks. Our legal bill review service can seamlessly plug and play into your existing ELM or other matter management workflows.

  • Flexibility and Integration

    Using API’s, we integrate our LBR team with your claims or RIMIS to ensure no re-keying of data, in order to kick-start the legal bill review process. This flexible approach can also be used to feed approved eBills directly into your AP/finance system(s).

  • Machine Learning & Automation

    LSG has built and utilized machine learning for more than a decade to drive accurate automation into the legal bill review processes. Turn around times, legal bill review accuracy and the highest levels of quality are attained and maintained. These, coupled with our SaaS technology, enable us to minimize the cost of operation, which is passed on directly to our customers.

The Workflow of LSG’s Legal Bill Review Service

Picture of an animated graphic displaying the entire workflow for legal bill review within an organization

Frequently Asked Questions (FAQ):

We are one of the only legal fee auditors that openly publish our pricing model. We also offer a net savings guarantee and price beat guarantee. This means that you are guaranteed to save money with LSG’s legal bill review service, with cost reductions on pre-existing operations spend when switching from competitors or in-house to LSG.

Here's an overview of LSG vs. our competitors:
  • Bottomline Technologies - % of spend, e.g. 1.5-2%
  • LegalBillReview - % of spend, e.g. 1.5-2%
  • Wolters Kluwer - % of spend, e.g. 1.5-2%
  • LSG - 1% of spend
We have had a legal bill review team, combined with an accompanying LBR software, for over a decade. This software has been implemented with various top companies around the world, ensuring maximum savings and near 100% compliant legal spend. The LSG legal bill review team utilizes this software, integrated with your incoming or pre-existing legal bills, and adjusts and approves invoices based on their compliance to agreed upon guidelines or SLAs with your suppliers and vendors. As an example, one of our insurance clients saved $487 million dollars over just three years using LSG's legal bill review service.
AI, or more aptly named machine learning (ML) for its use in legal bill review, compares newly submitted invoices against our proprietary database of invoices, which has already been processed by our legal bill review outsourcing team. If the newly submitted invoice has any line items that were previously rejected by a large portion of previously reviewed invoices, then machine learning would dictate a challenge to this legal spend. If this software does not detect non-compliant legal spend, then a recommendation is made to the human reviewer, the final sign off, that this invoice be approved as compliant.
LSG employs a best-of-breed legal bill review team, combined with a litigation management software to detect billing non-compliance, and areas where our clients are paying more than what’s fair. A recent average invoice savings example is 12%, which means 12 cents of every dollar back in that client's pocket. We also implement our proprietary best practices library, which consistently generates a savings “alpha” on top of any client billing guidelines.
Legal bill review services can be dovetailed into litigation management software and enterprise legal management software. These software platforms maximize cost containment as it relates to legal spend, and reduce not only legal bill values, but also time costs with an in-house team. The relevant in-house operations/finance team can be redirected to higher value add tasks for the business, for example, revenue generation opportunities. This subject might not get you overly excited, but it is important. To give some context, our Legal Bill Review and ELM software combination generated ~$122 million in savings per year, in legal expenses, for just one client.
While our general view is that the best outsourced legal bill review teams will drive value regardless, we want to provide access to education materials from an independent third party here so you can decide for yourself. We have driven over $1B in savings and typically see ROIs of 6-7x, but it's worth keeping in mind the general pros and cons before you make your decision. We consider LBR a classic example of a low hanging fruit opportunity to utilize legal bill review, but consider as many sources as possible when making your decision.
Legal bill review (LBR) is the process of auditing an organization's legal spend to ensure billing compliance to service level agreements and billing guidelines. In other words, legal bill review ensures companies do not overpay their law firms, and/or law firm panels.
QuickLBR is our expedited legal bill review, whereby we'll return your audited bills within 24 hours using a combination of a human team of experts and our proprietary legal bill review software.

Schedule a Demo

A personalized demo with our legal bill review team is the best way to figure out whether LSG is the right LBR outsourcing partner for your organization. Contact us to set up a demonstration where we show you how we can help you achieve cost savings with LSG’s legal bill review service.

If you want to talk to us, give us a call at +1 877 566 9574.

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