Periodic payment means making payments on a schedule over time as opposed to in a single lump sum.
It is important to note that this reform would not affect a claimant's ability to receive the full payment for any past or present damages, such as the medical bills or lost wages incurred through the date of the trial. The claimant will still receive these damages in a lump sum at the time of judgment or settlement. In many ways it is like an installment plan for a large purchase. The injured patient receives more of the award under the periodic payment reform, and the attorney less. Where a claimant receives a lump sum award that is not reduced to present value, the contingency fee paid to the claimant's attorney is much higher than it would be if the award was reduced to present value and structured as a periodic payment.