What Is A Hospital Lien And How Can It Affect My Settlement?

If you have been in an accident that was the result of another person’s negligence and you received treatment at a hospital in Texas, the hospital has the right to file a lien for payment of their bill against your claim. When you arrive at an emergency room, you are asked, either verbally or by filling out a questionnaire, why you are there. What are your injuries and how did you get them. Your answers will give notice to the hospital of a possible third party claim and thus the right to file a lien for their services. Typically, if you were in an auto accident, they will also ask for the other party’s insurance information so they can put the insurance company on notice of their lien.

There are some requirements that hospitals must follow for their lien to be valid. The patient must be admitted to the hospital within 72 hours of the accident. The lien must be filed with the county clerk before any money is paid to the injured person in settlement of their claim. The lien only attaches to the at fault party’s insurance, not to the injured person’s insurance. So if you make a claim with your own insurance company, maybe a Personal Injury Protection (PIP) or Uninsured Motorist (UM) claim, the lien would not attach to either of those claims.

Which hospital you go to will sometimes determine whether a lien is filed. Some hospitals are more aggressive than others when it comes to filing liens. In Austin, most of the hospitals associated with Seton (i.e. Seton Medical Center, Brackenridge, Seton Williamson, Dell Children’s, etc.) will more than likely file a lien, whereas hospitals associated with St. Davids (i.e. St. Davids, South Austin Medical Center, North Austin Medical Center, etc.) rarely file liens.

Liens affect you and your claim because the other party’s insurance company must honor the lien and pay the hospital at the time of settlement. The insurance company normally writes a separate check directly to the hospital and another check for the balance of the settlement to you or your attorney. This makes it difficult to negotiate a reduction in the hospital bill or work out a payment plan, there is no incentive for the hospital to reduce their bill or accept monthly payments when they know they will get paid in full at the time of settlement. Your attorney will check for any liens before settling your claim. If you are representing yourself, be careful, not knowing that a lien was filed is no excuse should the hospital come after you for payment sometimes months or even years after your case has settled.



Earl K. Straight serves victims of Texas car and truck accidents in Austin, Round Rock, Bastrop, Cedar Park, Buda, Kyle, Taylor, and elsewhere in Travis County, Williamson County, Hays County, Lee County, and Burnet County, including accidents on I-35, Highway 1 (Mopac Expressway), Highway 183, and other Texas roadways.