If you are hurt in an accident and unable to work, you may not be able to even make the first payment on your hospital bills. But just because a hospital stops bothering you, it doesn’t mean you won’t have to eventually pay.
In fact, California’s Civil Code (CIV) allows hospitals to place a lien on any claim you file against someone responsible for your accident. Once your settlement check arrives, part of it may belong to the hospital for care not paid.
Every person, partnership, association, corporation, public entity, or other institution or body maintaining a hospital licensed under the laws of this state which furnishes emergency and ongoing medical or other services to any person injured by reason of an accident or negligent or other wrongful act… if the person has a claim against another for damages on account of his or her injuries, have a lien upon the damages recovered, or to be recovered, by the person, or by his or her heirs or personal representative in case of his or her death…
What Can a Hospital Take From My Accident Settlement?
A lien is a legal claim made by the hospital to some of a patient’s personal injury settlement or court judgment award. The money is used to pay a portion of the hospital bills someone might build up after being involved in a car accident or a slip-and-fall at a grocery store.
The victim may file a personal injury claim against an at-fault driver’s car insurance provider or a negligent supermarket owner’s commercial liability insurance company. If the victim receives a settlement and hasn’t yet paid off their medical bills, the hospital can demand a part of the settlement check under California code.
The lien allows them to make this claim and wait until the lawsuit is resolved to receive compensation.
Hospitals aren’t usually allowed to demand payment on every bill.
- The code states that the hospital can ask for payment for services for the treatment, care, and maintenance of the person. Not every bill the hospital charges will necessarily be paid under the lien.
- The lien may apply to a wrongful death settlement if a patient dies and heirs file a claim with those at fault.
- The lien can come out of a personal injury settlement, judgment (awarded after a trial), or compromise.
- If the at-fault party doesn’t pay the victim what’s owed, the hospital may file a separate legal claim against the at-fault party.
- This lien can be different from Medi-Cal liens and other liens agreed to by hospital administrators.
The Limits on Hospital Liens
In some cases, there are also limits on how much a hospital can demand out of a victim’s settlement.
Under CIV 3045.4, healthcare networks could only take up to half of the settlement amount. But that half doesn’t always come out of the total of the settlement or court award. Prior liens, such as a lawyer’s fee, are paid first.
Then, if the lien is for less than half of what remains, the hospital would usually be paid. If the bill totals went above 50% of what was left of the settlement, the rest wouldn’t get paid.
There are a couple of notes about the lien payments:
- Just because a hospital doesn’t get paid the full amount due to the lien limit or restrictions doesn’t mean the remaining debt is forgiven. The victim may still owe what’s left.
- A victim’s health insurance may cover the hospital bills, and a lien may not be necessary. However, the victim’s health insurance provider may also place a lien to be reimbursed if the policyholder wins a settlement.
Contact a California Personal Injury Attorney
If your accident involves a serious injury or the tragic death of a loved one, and someone else was to blame, it’s an excellent idea to have an experienced California Personal Injury Lawyer on your side.
Your lawyer can help you earn the most possible from insurance companies so you can pay off any recovery costs and any liens. Your lawyer also fights to make sure you aren’t unfairly charged for unnecessary services. Your lawyer is sometimes able to negotiate with hospitals and health insurance companies to reduce what you owe.
Maison Law of California offers a free, no-obligation case consultation for all injured California accident victims. If you do need our help, there are no upfront charges. In fact, we aren’t paid unless we win your case for you. Then our fee comes out of the check the insurance company must write for you.
