What Do I Do If I Get a Hospital Lien?

Do you have a pending personal injury case in Tennessee? There may be a hospital lien attached to your case if so.

A hospital or medical lien can reduce how much compensation you receive as a settlement or damages. In some circumstances, a lawyer can reduce or remove a lien, allowing you to maximize your financial recovery.

What Is a Hospital Lien?

A hospital lien is a legal claim against an injured patient’s personal injury compensation for outstanding medical bills. 

You may require medical treatment after sustaining injuries due to someone else’s negligence. You might struggle to pay for your treatment, and your medical bills could go unpaid while you pursue a personal injury claim. 

If the hospital files a lien against the proceeds of your personal injury claim, a portion of the compensation you receive could go directly to the hospital. 

For instance, maybe you sustained harm in a car crash, and you’re seeking $50,000 for your losses. Assume the cost of your medical treatment was $10,000. The hospital could file a lien requiring that $10,000 of any settlement you receive be set aside to pay your hospital bill.

Tennessee Code Annotated 29-22-102 establishes the rights of hospitals to file liens. They must do so within 120 days of discharging you from the hospital. All affected parties should receive a copy of the claim within 10 days of a hospital filing it.

Limits and Regulations on Medical Liens in Tennessee

Failure to file a lien within 120 days of discharging a patient can cause a hospital to forfeit its rights to be paid directly from your settlement money. Additional limits on hospital liens in Tennessee include:

• A hospital can’t seek more than one-third of a settlement or damages a patient receives.
• A hospital doesn’t have to authorize or approve a settlement. If a claimant negotiates a settlement with the insurance company, a hospital with a lien doesn’t have the right to stop the settlement. 
• Hospital liens are subordinate to attorney’s liens.
• Hospital liens don’t apply in cases where the Tennessee Workers’ Compensation Law applies.
• A hospital lien for motor vehicle crash injuries doesn’t take priority over a mechanic’s lien. It also doesn’t take priority over any prior liens on the motor vehicle in the crash.
• A hospital can’t file a lien until 30 days after discharging a patient.

Impact of Medical Liens on Personal Injury Cases 

In some instances, a hospital lien is beneficial in a personal injury case. A lien may help you worry less about how you’ll pay for medical treatment. However, a lien will ultimately reduce your compensation. That’s why it’s critical to work with a personal injury attorney who understands the effect of hospital liens and can work to minimize their impact on your final payout.

Navigating the Process of Settling Liens

You may be wondering how to get a hospital lien removed or reduced. A lawyer with experience in negotiating hospital liens can help in this capacity. Our attorneys are ready to negotiate with the hospital for a more reasonable rate. If the hospital won’t cooperate, Tennessee law allows you to file a motion to quash or reduce the lien.

At The Terry Law Firm, our Tennessee personal injury attorneys can review your case and explain your potential options. Get started by contacting us online today or calling for a free case review.