You’ve just been injured in an accident, taken to the hospital, and you have no insurance to pay for the enormous treatment charges. To make things worse, a few weeks after you’re released from the hospital, a “hospital lien notice” shows up in your mail. What are your rights?
Hospitals commonly file liens against accident victim patients in order to recover their charges. In Texas, once a hospital files a lien, they have a superior right of recovery from funds received in a personal injury case. Therefore, after you receive a settlement or judgment against the at-fault party who caused your injuries, the hospital has a right to be paid back first. Ignoring the lien can have severe consequences if you settle your case and do not reimburse the hospital. However, the lien must first be valid, and the hospital can only recover “reasonable” charges.
For a hospital lien to be valid in Texas, the following conditions must be satisfied:
- The patient must be treated at the hospital within 72 hours after the incident;
- The lien must contain certain information including the name and address of the injured patient, the date of the accident, and the name and address of the hospital and at-fault party if known;
- The notice of lien must be in writing, filed in the county where the services are rendered, and sent to the injured patient or their representative within 5 days of the notice’s filing; and
- The lien must be filed prior to the distribution of your settlement funds. That is, the lien does not attach to your personal injury funds if the lien is not properly filed prior to the money being paid to you.
How much of the lien do you have to pay back?
By law, the hospital may only recover the usual, customary and reasonably (“UCR”) charges for their services, as hospitals are not permitted to overcharge. In considering the customary and reasonable rate, Texas courts have considered several factors, including (1) what the hospital has historically accepted from self-pay patients; (2) the negotiated rates with private health insurance carriers for the same services, and (3) the amount that public insurance pays, such as Medicare and Medicaid.
Once the charges are confirmed to be customary and reasonable, section 55.004 Texas Civil Practices and Remedies Code provides that the hospital may only recover the lesser of (1) the total amount of recoverable charges, or (2) fifty percent (50%) of the total amount recovered by the injured party.
While hospital liens can be tricky, they can be negotiated down by an aggressive experienced attorney. Therefore, is important to have the right attorney from the start. Even in situations where the medical bills far exceed the amount of liability insurance available to reimburse you for your injuries, Abraham Watkins is often able to negotiate hospital reductions large enough to ensure that their clients are fairly compensated. If you or someone you love have been treated at a hospital after being injured by a third party, contact an experienced attorney at Abraham, Watkins, Nichols, Agosto, Aziz & Stogner by calling (713) 222-7211 or 1 (800) 870-9584. The law firm of Abraham, Watkins, Nichols, Agosto, Aziz & Stogner is the longest-standing personal injury firm in Texas. Our attorneys are standing by to assist you with your personal injury claim.