Hospital liens: A hospital lien grants the hospital, providing medical care and treatment to the injured person, a lien right (right of reimbursement) in the injured person’s proceeds from a settlement or judgment.  Though there is no statewide uniform hospital lien law, the lien laws exist on a county-by-county basis by virtue of special acts and local ordinances.  Most county lien laws require that a lien be recorded with the local court within 10 days of the discharge from the hospital to be valid.

What does a hospital lien mean to your personal injury case?  You or your attorney must satisfy the lien from any settlement.  Some laws automatically allow a reduction for your one third attorney’s fee or the applicable percentage of the attorney fee.  Also, if the patient (or patient’s attorney) and the hospital agree to an amount to settle the hospital bill which is less than the full amount charged, then the lien is extinguished because the underlying debt is resolved.  While the lien law is a serious matter, it applies only to settlements or verdicts, and it cannot attach to any other property unless the collectable amount is pursued in litigation and a judgment is obtained against you.  Some clients worry that it automatically means, for example, their home can be at stake.  This is not the impact of an initial hospital lien, which is routinely filed by hospitals after nearly every automobile accident when you receive treatment at a hospital.

The last important point to understand about a hospital lien is that it can take priority over an injured party’s right to apply for PIP benefits to their claim for lost wages or funeral expenses.  This is something your attorney can explain to you in detail if you are concerned about these issues, and be assured that in many cases the lien is satisfied by your no-fault benefits (PIP) by 80% and many balances are adjusted after the payment is applied.  If you receive this onerous looking letter in the mail after your accident, simply notify your attorney and be assured it is a rather routine matter normally amicably resolved.

Health insurance, Medicare, or Medicaid liens: Most private health insurers and all Medicare and Medicaid providers have a right to reimbursement from any proceeds from a personal injury settlement or verdict.  You may receive a notification of this right if you receive treatment due to the liability of another person and have a right to recovery for your injuries.  Even if you do not receive this notice, you have an obligation to satisfy the amounts paid by any of the above referenced providers, unless the policy provisions of your private health insurance indicates otherwise.  Even if you are not represented by an attorney, you must consider these amounts paid for you as amounts you actually owe in the case of an insurance settlement for your injury.  These laws and medical charges can be complex and difficult to negotiate.  For this reason alone, it is always wise to consult legal counsel in the case of personal injury. 

Pam Olsen, Esq., is an experienced personal injury attorney with Bogin, Munns, & Munns, P.A., a full service law firm with offices in Orlando, Clermont, Kissimmee, Deltona, Daytona Beach, Ocala, Melbourne, Gainesville, and Leesburg, Florida.  Ms. Olsen works out of the Ocala office of the firm and welcomes questions and comments regarding the above and can be reached at polsen@boginmunns.com

NO LEGAL ADVICE: This blog entry is not intended as legal advice nor should you consider it as such. It is intended only as general information.  You should not act upon this information without retaining professional legal counsel. Please keep in mind that merely subscribing to or reading this blog or otherwise contacting Bogin Munns & Munns, P.A. in the manner that you have will not establish an attorney-client relationship with our firm. Bogin Munns & Munns, P.A. cannot represent you until the firm knows there would not be a conflict of interest, and the firm determines that it is otherwise able to accept the engagement. The engagement would also be confirmed by a written agreement.