If you were injured in an accident in Texas and received treatment at a hospital, you may be surprised to receive a hospital lien in the mail. Don’t panic: Hospital liens are often applied to people who receive emergency medical care. Knowing how these legal instruments work and understanding your rights to compensation can help you navigate this challenging time more effectively.
What Is a Hospital Lien?
A lien is a legal claim held by a creditor that allows them to collect payment on a debt. A hospital lien is a specific type of lien that a medical facility can assert against a future personal injury settlement or judgment to secure payment for the medical services they provided.
In Texas, Texas Property Code Section 55.002(a) grants this right. The law states that when someone is injured in an accident caused by another person’s negligence, the treating hospital may put a lien on their personal injury claim – provided the patient is admitted no later than 72 hours after the accident.
A lien gives the hospital the right to be paid from your settlement or judgment before you receive any compensation. This law ensures that hospitals are compensated for the services they provide to accident victims, particularly those who may be uninsured or unable to pay their medical bills upfront.
It’s important to note that hospital liens are not unique to Texas. Many states have similar laws. However, the specific requirements and procedures governing these liens vary from state to state. Hospital liens are common in Texas, particularly in the aftermath of car accidents, slips and falls, and other personal injury incidents.
Does Texas Have Requirements for Valid Hospital Liens?
Texas has specific requirements that must be met for a hospital lien to be considered valid. These requirements are outlined in the Texas Property Code and are designed to protect the rights of the hospital and the patient.
One of the most crucial requirements is the time limit for a hospital lien. In Texas, a hospital may only file a lien when a patient is admitted within 72 hours of the accident. The lien may be considered invalid if the patient is admitted after this timeframe.
Another essential requirement is the information that must be included in the hospital lien notice. The notice must contain the following details:
- The patient’s name and address
- The date of the accident
- The hospital’s name and address
- The name of the person alleged to be liable for the patient’s injuries
Texas law also requires that the charges included in the hospital lien be reasonable and regular. This means the hospital cannot inflate prices or charge for services not provided. A lien is restricted to the lesser of:
- The cost of care rendered to the patient during the first 100 days of treatment
- 50 percent of the total amount recovered by the patient through their injury claim
- An amount selected by the court, adjusted for attorneys’ fees and other expenses
If the charges are unreasonable, irregular, or violate the above requirements, the patient may challenge the lien.
Who Else Can File Liens on a Personal Injury Case?
Texas’s hospital lien law has provisions for other parties that may file such liens, including the following:
- Emergency medical services providers – In certain Texas counties with a population of 800,000 or less, emergency medical services (EMS) providers, such as ambulance services, can file a lien for the services they provided within 72 hours of the accident. However, these liens are subject to a maximum amount of $1,000.
- Individual physicians providing emergency services – The specific doctor who provides emergency care can recover reasonable and necessary expenses from their treatment of the patient during the first seven days following hospitalization
- Physicians employed by higher education institutions – In some cases, physicians employed by colleges or universities who provide emergency medical services may also file a lien against a personal injury settlement.
While hospital liens are the most common type in personal injury cases, they are not the only entities that can assert a claim against your settlement or judgment. Here are some other examples:
- Health insurance companies – If your health insurance provider covers any portion of your medical expenses related to the accident, they may assert a lien against your settlement to recover the amount they paid. This is known as subrogation.
- Government healthcare programs – If you receive benefits from Medicare, Medicaid, or another government healthcare program, they may also file a lien to recover any payments made for your accident-related medical care.
It’s essential to be aware of these potential liens, as they can impact your compensation. Your personal injury attorney can help you identify any liens on your case and work to negotiate with the lienholders to reduce the amount you owe.
How Can a Hospital Lien Affect a Settlement in a Personal Injury Claim?
Hospital liens can have a significant impact on your personal injury settlement. First, hospital liens are generally the first thing paid out in your claim. This means you must pay the hospital before you even see a cent of compensation yourself. On that note, hospital liens also take money directly from your financial recovery, potentially as much as 50 percent of the settlement or award. That could leave a lot less left over for you.
At this point, you might wonder what would happen if you simply did not pay the lien. If you or your personal injury attorney fail to pay a valid hospital lien from your settlement, the hospital can take legal action against you. This may result in additional legal fees and a judgment against you, further impacting your financial well-being.
What Can I Do to Avoid Hospital Liens in Texas?
Depending on the circumstances, you may have several options for avoiding hospital liens entirely or reducing their financial burden. Here are some strategies to consider:
- Use your health insurance.
- Negotiate directly with healthcare providers.
- Seek alternative funding sources.
It’s important to note that avoiding hospital liens should never come at the expense of your health and well-being. If you require immediate medical attention after an accident, don’t hesitate to seek treatment.
What Should I Do When I Receive a Hospital Lien?
If you receive a hospital lien in the mail, you must take prompt action to protect your rights and interests. Here are some steps you should take:
- Review the lien with a lawyer to confirm its accuracy and validity.
- Communicate through your attorney with the hospital or their representative.
- Don’t settle your personal injury claim without addressing the lien.
Dealing with a hospital lien can be complex and stressful, but you don’t have to face it alone.
Can My Attorney Negotiate the Amount of the Lien?
Your personal injury attorney can negotiate the amount of the hospital lien for you. This is one of the critical services that personal injury attorneys provide to their clients. Here’s how the process typically works:
- Review the lien for compliance – First, your attorney will check the lien for compliance with Texas state laws. This includes ensuring the hospital filed the lien correctly and within the designated timeframe. Any errors in the filing process could invalidate the lien.
- Audit the charges – Your attorney will scrutinize the hospital charges to ensure they are reasonable and related to the injuries from your accident. They might compare these charges with typical costs for similar medical services to find any discrepancies or overcharges.
- Negotiate with the hospital – Once they understand the lien and the associated medical costs, your attorney can start negotiations with the hospital. The goal is to agree on a reduced amount that reflects fair treatment costs.
If you’re facing a hospital lien in Texas, don’t hesitate to contact a qualified personal injury attorney for help. Their goal is to ensure you do not pay more than you have to and that you get to keep as much of your compensation package as possible.
Contact a Texas Personal Injury Lawyer
Dealing with the complexities of hospital liens in Texas can be overwhelming, especially when you’re already struggling with the physical, emotional, and financial aftermath of an accident. By understanding your rights and obligations under Texas law, you can take steps to protect your interests and maximize your compensation.
If you’ve been injured in an accident and are facing a Texas hospital lien, an experienced personal injury attorney can protect your rights and help you keep as much of your settlement or award as possible. At The Wilhite Law Firm, our dedicated attorneys have the knowledge, skills, and experience to handle even the most complex personal injury cases, including those involving hospital liens.
Don’t let a hospital lien stand between you and the compensation you deserve. Contact The Wilhite Law Firm for a free consultation. Let us handle the legal details so that you can focus on your recovery.
