HOSPITAL LIENS FAQ
When someone is the victim of a life-threatening accident, there is no time for the hospital to check on whether they have the health insurance coverage required for the care they need. Most hospitals in Nevada are required to provide treatment to anyone in need of emergency medical attention. So, what happens if someone receives medical care they cannot pay for on their own? In Nevada and throughout the United States, these types of debts are typically resolved through medical liens.
What Is a Hospital Lien?
Hospital liens are designed to allow hospitals that provide emergency care to uninsured patients to claim a portion of any legal award that the patient might receive for the accident. Specifically, Nevada Revised Statute 108.590 states that “[w]henever any person receives hospitalization on account of any injury, and the injured person, or a personal representative after the person’s death, claims damages from the person responsible for causing the injury, the hospital has a lien upon any sum awarded the injured person or the personal representative by judgment or obtained by a settlement or compromise to the extent of the amount due to the hospital for the reasonable value of the hospitalization rendered before the date of judgment, settlement or compromise.”
Hospital liens are attached to a personal injury claim, giving the hospital the ability to claim “the reasonable value” of their treatment from any settlement or verdict recovered from the negligent party or their insurance company. Hospital liens are typically sent as a notice to the person who received treatment.
Liens may attach to the following claims:
Court judgments
Insurance settlements
Federal Longshore and Harbor Workers’ Act claims
Federal Employees Liability Act claims
Hospital Lien Limits
While other states provide significant additional limits on hospital liens, Nevada places fewer limits on hospitals. The few relevant limits on hospitals are as follows: First, hospitals may only recover the reasonable value of their services in Nevada. Second, if a patient is eligible for Medicare, Medicaid, etc., hospitals are limited to recovering 55% of the charges billed.
Liens are only valid if they are done in the following way:
To perfect a lien in Nevada under Nevada Revised Statute § 108.590, the hospital must
(1) Send a notice of intent to file a lien under § 108.605(1) and comply with § 108.605(2) if there is a health insurance policy.
(2) Record notice of lien in the form prescribed by § 108.620 and filed with the county recorder where the hospital is located and the county recorder where the injury was suffered.
(3) Serve a certified copy of the notice of lien by registered or certified mail on the tortfeasor before any third-party settlement is paid.
(4) Serve a copy of the notice of lien by registered or certified mail on the third-party insurance carrier for the tortfeasor.
If the rules listed above are not followed, it may be possible to invalidate a lien.
Why Could Liens Be Difficult to Resolve
Liens can be challenging to resolve because hospitals can make more money off a lien on a personal injury claim than if they went through a person’s health insurance. So, the other party’s insurance may refuse to pay a settlement until a lien is taken care of by the claimant. Claimants who need a settlement often think that they must accept losing most of it to a hospital lien. However, this is not always the case with the help of an experienced personal injury lawyer.
Sometimes, the size of a lien may be reduced through negotiation by your lawyer. At Cohan PLLC, we’ve earned a reputation for standing up to some of the largest companies and entities in the world. We’ll never settle for less than our clients deserve and won’t hesitate to hold all at-fault parties accountable while making sure you can get the medical care you need.
Have You Been Injured? Our Law Firm Can Help.
If you were involved in a car accident, you should learn about your options. Suffering an injury at the hands of someone else is a profoundly disorienting experience. Many of our clients come to us because they simply don't know what to do next. What kind of claims do they need to file? What do they do to get medical care for their loved ones, or how do they afford a funeral in the wake of a wrongful death? Most of our clients ask an even more straightforward question: "with all my medical expenses, how do I provide for my family?"
Regardless of your situation, you are bound to have countless questions. Cohan PLLC will help you get answers. To help you find your feet during this difficult time, we have compiled some of the most commonly asked questions and provided general answers. For specific answers about your case, review your legal options with us in a free consultation.
Contact our accident lawyers if you were involved in a serious car accident at (888) 424-2736. We're ready to fight for what is right and get you the compensation you deserve.