The Indiana hospital lien statute allows hospitals to claim payment from personal injury settlements or judgments for medical care provided to injured patients. This means a hospital can take a portion of your claim payout if you have outstanding medical bills after an injury accident.
If you’re dealing with a hospital lien in Indiana, a personal injury lawyer can help you by reviewing the lien to ensure it complies with Indiana law and does not overcharge you. They can also negotiate with the hospital to try to reduce the lien so you can keep more of your financial recovery. If a lien is invalid or excessive, a lawyer can challenge it in court to protect your rights.
Table of Contents
- 1 What Is a Hospital Lien?
- 2 What Is the Indiana Hospital Lien Statute?
- 3 When Was the Indiana Hospital Lien Statute Modified?
- 4 What Will Happen If You Don’t Pay Your Hospital Lien?
- 5 How Long Can a Medical Lien Process Take?
- 6 Will a Medical Lien Be Deducted from My Personal Injury Claim?
- 7 Contact an Indiana Personal Injury Lawyer
What Is a Hospital Lien?
A hospital lien is a legal claim a hospital can file to recover the cost of medical treatment it provides to an accident victim. In Indiana, hospitals can place a lien on any money the patient might receive from a personal injury lawsuit – whether through a settlement or court verdict. This lien gives the hospital the right to demand payment for its services before the patient receives any remaining funds.
Indiana law allows hospitals to file liens only for reasonable and necessary charges. The lien does not apply if the patient’s medical expenses are covered by certain types of insurance, such as workers’ compensation or Medicare. Hospitals must follow specific steps to file liens correctly, including notifying the county recorder and other relevant parties.
What Is the Indiana Hospital Lien Statute?
Indiana’s hospital lien statute allows hospitals to file liens to recover costs for medical care they provide to patients injured by others’ wrongdoing.
Hospitals must follow specific steps and rules to enforce these liens:
- Written notice — Hospitals must file written notices with the county recorders where they are located within 90 days of a patient’s discharge or before a settlement or verdict is finalized, whichever happens first. The notice must include the patient’s name, hospital details, admission and discharge dates, and the amount owed. Hospitals must also send copies of these notices to patients’ attorneys, any known liable parties, and the Indiana Department of Insurance.
- Lien limits — Hospitals cannot file liens for patients covered by workers’ compensation, Medicare, or certain other insurance programs. Liens must reflect adjustments for insurance payments, write-offs, and benefits that reduce patients’ financial responsibility. If a hospital settles its lien for less than the full amount, it cannot later demand additional payment from the patient.
- Minimum patient recovery — The law also protects patients by requiring that they receive at least 20 percent of any settlement. If a lien would take more than 80 percent of a settlement, hospitals must reduce their claims proportionally. Patients or their attorneys can challenge liens in court if they believe the charges are unreasonable or improperly filed.
When Was the Indiana Hospital Lien Statute Modified?
The Indiana Legislature modified the hospital lien statute in 2013 through Senate Bill No. 5. This amendment repealed the previous hospital lien laws, effective July 1, 2013. However, liens perfected before this date remained valid until released. The repeal did not eliminate a hospital’s right to collect payments through other legal or contractual means.
The changes prevent hospitals from enforcing liens beyond a patient’s financial responsibility under insurance contracts or other agreements. Additionally, hospitals that settle their liens for less than the full amount cannot demand further payment from patients. These modifications provide greater protection for injured individuals by limiting excessive hospital lien claims.
What Will Happen If You Don’t Pay Your Hospital Lien?
If you do not pay your hospital lien, the hospital can take legal action to recover the money. Once the hospital properly files the lien, it has a legal claim to part of your personal injury settlement or judgment. If you receive compensation and fail to pay the lien, the hospital may sue you for the amount owed. The hospital can also pursue collection efforts, which could affect your credit.
Additionally, if you settle with the at-fault party without resolving the lien, the hospital could still have the right to demand payment. Ignoring a lien does not make it go away. If you believe a lien is incorrect or unfair, a personal injury attorney can help you challenge it to seek a reduction.
How Long Can a Medical Lien Process Take?
The medical lien process can take several months or even years, depending on the case. Indiana hospitals must file liens within 90 days of a patient’s discharge or before the case settles, whichever comes first. However, liens stay active until the underlying claims are resolved or the liens are released.
If a personal injury case takes a long time to settle, the lien will stay in place throughout the process. Hospitals typically wait for these cases to conclude before seeking payment. Once a case resolves, the hospital or lienholder will expect payment promptly. If you negotiate a reduction or dispute the lien, this can extend the process further.
Will a Medical Lien Be Deducted from My Personal Injury Claim?
A medical lien will be deducted from your personal injury claim before you receive any remaining funds. Indiana law allows hospitals to collect payment from settlements or court awards related to injury claims. A hospital’s lien must be satisfied before you receive your share of the settlement.
However, state law also protects injured parties by requiring that they receive at least 20 percent of any settlement amount. If hospital liens exceed 80 percent of a settlement, hospitals must reduce their claims proportionally. Your attorney can also negotiate for a lower lien amount.
Contact an Indiana Personal Injury Lawyer
If a hospital has placed a lien on your personal injury settlement in Indiana, contact Truitt Law Offices now for a free consultation. Our team has over 40 years of experience and more than 100 five-star Google reviews, so you can count on us to fight to protect your settlement.
