From our experience one thing that hospitals can do more of to increase their revenue is to file hospital liens in appropriate situations in states that have such laws. Simply put, a hospital lien gives the hospital a legal interest or entitlement to at least a portion of any settlement or judgment proceeds due the patient from another party that caused or contributed to the patient’s injuries.

The most common scenario for this is where the patient was injured in a car accident and another party was at fault. (This includes where the patient was a passenger and the driver of the vehicle the patient was riding in was at fault, or if the patient was a pedestrian and the vehicle who hit the patient was at fault.) However, a lien can and should be filed any other time where the patient was injured and is bringing a liability claim or lawsuit against an individual or entity that the patient believes is liable. This includes the patient making a claim for injuries on another’s property due to no fault of the patient, animal bites, etc. We have filed liens in such varied situations as where the patient is suing the person who shot him and where the patient is suing a company for asbestos-related injuries.

The presence of a properly filed lien means that if the patient settles his liability claim or gets a judgment against the at-fault party, the lien must be addressed before the money can be fully distributed to the patient. Without such a hospital lien being filed, the at-fault party’s insurance company is free to pay the money directly to the patient or the patient’s attorney, with no legal obligation to address the hospital’s bill.

Each state’s laws differ to some extent and normally the procedures and deadlines for filing a hospital lien must be followed exactly. For example some states such as Georgia and Texas require the lien to be filed with a specific court or courts, while other states such as Louisiana only require certified notice be sent to certain parties. Also, each state’s laws can differ on exactly what protection is given the hospital, who is liable if the lien is ignored, and if the lien is limited to a certain percentage of the settlement proceeds. Finally, it is important to note that some states, such as Kentucky, do not have any hospital lien laws whatsoever. As a law firm with over 25 years of specialized legal experience, CMA has the expertise needed to review each state's hospital lien laws and answer any questions you may have. Should you have any such questions, please refer to this website for information on how to contact us.