When dealing with the consequences of a personal injury case, it is easy to get overwhelmed. This is especially true if you’re dealing with significant financial concerns, like mounting medical debt for the treatment of your injuries.
In this blog, we explain what a Texas personal injury lien means, the different types and limitations, how they are filed, and how our lawyers can help. Our attorneys at Terry Bryant Accident & Injury Law can provide you with the legal guidance that will make all the difference when your settlement is subject to a lien.
We have successfully done this for thousands of clients and are confident we can help you achieve your desired result. Call us now at (713) 973-8888 to find out more. Our initial consultation is free and confidential.
Why Choose Our Personal Injury Attorneys to Represent You?
At Terry Bryant Accident & Injury Law, we represent the interests of injury victims and fight to protect their rights and recover maximum compensation. Our duties encompass everything needed to help you recover from your injuries and hold the responsible party accountable. To this end, we help our clients not only file and begin the claims process but also review liens that may have been filed on an expected settlement.
We dedicate time and resources to every case as needed and give 110% to help our clients get the best outcome. We are always available to answer questions and address concerns, so do not hesitate to contact us.
Our lawyers are ethical, reliable, and dedicated, with a strong reputation in the communities we serve. You can count on us to work hard and give you the best possible representation.
Texas Personal Injury Lien Explained
Generally, a lien is a legal claim or right against assets that are typically used as collateral to satisfy a debt. In personal injury cases, a lien is a legal claim to a portion of the settlement or judgment you receive. The lien ensures that entities like hospitals and other healthcare providers, insurance companies, and other service providers are reimbursed for the costs they incurred while treating or supporting you during your recovery from your injuries.
There are different types of liens in Texas personal injury cases. They include the following:
Medical Provider Lien
In Texas, medical providers must provide emergency care to anyone who is injured. However, this does not stop them from seeking payment for their services, and one way they do this is through a medical provider lien. The lien gives the healthcare provider the right to obtain the money owed to them from your compensation.
There is a provision for this in Texas Chapter 55 of the Texas Property Code. Under the law, if you suffered injuries from an accident — car, motorcycle, truck, or pedestrian accident — and it was caused by negligence, your healthcare provider can file a lien with the county clerk. After your case concludes and you win, the healthcare provider will collect the total amount owed for treating you, from emergency care through recovery. This is why medical liens are the most common type of personal injury lien.
The following rules set forth in Section 55.002 of the Texas Property Code govern the filing of medical liens:
- Eligibility: The injured party who was given the medical lien must have been admitted to the hospital within 72 hours of the accident that caused their injury.
- Scope: The lien applies only to the cause of action, judgment, or settlement related to the injury for which the hospital admitted the injured party.
- Filing Requirement: The lien must be filed in the county where the hospital provides services.
- Charges: The lien can only cover the customary, usual, and reasonable charges for the services the hospital provided to the injured party.
Insurance Lien
If you have health insurance, your insurance company will cover the treatment of your injuries and the insurance company will place a lien on your personal injury settlement to recover their costs.
Liens can significantly impact the final amount you take home as settlement, as any amount owed will be paid before you receive the money.
Filing a Lien on a Personal Injury Case in Texas
The healthcare provider is the one who files a lien in a personal injury case. Doing so involves the following steps:
Gathering Evidence
The medical provider will gather proof to show that the injured party owes them money for the treatment received. The necessary documents are:
- Medical bills and records
- Proof of treatment and services provided
- Contracts or agreements with the healthcare provider
- Any preliminary notices sent.
Preparing the Lien Affidavit
Once the medical provider has enough evidence to support the lien filing, they will fill out the Texas Affidavit of Lien. The document includes the following:
Filing the Lien Affidavit
After completing the affidavit, the medical provider will submit it to the county clerk’s office in the county where it provided medical services to the injured party. The court will then record the lien and notify the injured party.
Providing Written Notice of the Lien
The medical provider will send a copy of the lien affidavit to the injured party and any other relevant parties. The latter could be the injured person’s insurance company or the at-fault party. The notice must be sent within five days of filing the affidavit, and must contain:
- The name and address of the medical provider
- The accident date
- The name of the liable party or their insurance company.
If you have a personal injury lawyer, the healthcare provider can send them a notice of the lien. If necessary, your attorney will negotiate the lien to reduce the amount owed.
Limitations on Personal Injury Lien
Under Texas law, there are several limitations and regulations on liens to ensure fairness and compliance with the law. Below are some of the key limitations on personal injury liens in Texas.
Scope of the Lien
Liens do not apply to all personal injury compensation, including the following:
- Uninsured/Underinsured Motorist (UIM) benefits
- Personal Injury Protection (PIP) benefits
- Med-Pay benefits
- Wrongful death recoveries
- Workers’ compensation awards
- Funds covered by the Federal Employees Liability Act.
Filing Requirement
Liens must be filed properly to be enforceable. As mentioned, it must have the name and address of the injured individual, the accident date, the hospital’s name and address, and the at-fault party’s name, if known. Note that a lien not filed in the county where the medical provider rendered services to the injured party will not be enforceable.
Personal injury liens cannot be used by emergency medical service providers in counties with a population of more than 800,000.
Timeliness
Again, the injured party must be admitted to the hospital within 72 hours for the lien to be valid. Also, the lien must be filed before the settlement funds are disbursed.
Class of Medical Professionals and Services Rendered
Personal injury liens do not apply to everyone providing medical services. For example, chiropractors and physical therapists cannot file a medical lien. Also, the lien only covers “reasonable and regular” rates for the services provided.
Duration of Hospitalization
Medical liens only apply to the first 100 days of the injured party’s hospitalization and cannot exceed 50% of the total amount received in settlement or judgment. Also, the healthcare provider cannot charge more than $1,000 for the ambulance services provided during the first 72 hours after the injured party’s accident.
How Can a Lawyer Help With a Lien?
If you retain our services as your lawyer, we will negotiate the amount of the hospital lien on your behalf. We will check the lien to ensure it complies with Texas laws and there is no error in the filing process. Also, we will examine the amount charged by the hospital to ensure charges are reasonable and connected to your injuries.
If needed, we will compare the costs with other medical services to see if there are discrepancies or overcharges. Once we’ve done all this, we can start the negotiation to see if the hospital or healthcare provider will agree to a smaller amount.
Contact Our Texas Personal Injury Lawyer Now!
When dealing with the physical, emotional, and financial effects of an injury, it can be overwhelming to handle the complexities of hospital liens yourself. It can even be more challenging if you are simultaneously pursuing compensation. Let our Terry Bryant Accident & Injury Law team take the pressure off you.
We have the experience, skill, and knowledge needed to handle all that comes with complex personal injury cases, including hospital liens. Call us now at (713) 973-8888 or toll-free 1 (800) 444-5000 for a free and confidential consultation.
Attorney Terry Bryant
Terry Bryant is Board Certified in personal injury trial law, which means his extensive knowledge of the law has been recognized by the Texas Board of Legal Specialization, setting him apart from many other injury attorneys. The 22 years he spent as a Municipal Judge, Spring Valley Village, TX also provides him keen insight into the Texas court system. That experience also helps shape his perspective on personal injury cases and how they might resolve. This unique insight benefits his clients. [ Attorney Bio ]
