The last thing you want to think about after a motorcycle accident injury is loans you never signed up to pay! That’s what a hospital lien is. A loan, and you will need a motorcycle accident injury lawyer to help you negotiate these loans you never agreed to pay.
Motorcycle Man Law realizes our job is more than kicking ass. We will talk to all of the medical providers who provided you important, often life saving, medical services on credit. That’s one of our most important jobs. A good motorcycle accident lawyer knows you can’t handle those phone calls, emails, and late nights worrying about hundreds of thousands of dollars in staggering medical expenses!
Ever taken out a mortgage? For most of our clients, that is how their medical bills feel. Only they didn’t sign up for this loan and they got a broken bike, busted body, and most seriously, sometimes a banged up brain. That’s not what they paid for! But it is the money they took out on credit.
After a motorcycle accident injury, a lot of times insurance money is less than the ’s medical bills. We call this upside down. Like a mortgage where the loan is more than the value of the house. We work hard to turn things the right way up on upside down cases!
If you are confronting these kind of catastrophic results from a motorcycle accident injury, here are some things that Motorcycle Man wants to tell you about hospital liens.
First the basics. A hospital lien is a legal claim filed by a hospital against the biker in the county records where the biker lives or receives treatment for his or her motorcycle accident injury.
Second the asset. The asset subject to the lien is any settlement (or judgment) the biker receives. The hospital lien is to secure payment for medical services provided by a hospital when a biker has suffered injuries in a motorcycle accident that were caused by someone else’s negligence who then pays, or their insurance company pays, a settlement or a final judgment.
Third Texas law. By Texas state statute, the hospital receives payment from the settlement proceeds before the biker receives any funds as compensation for his or her motorcycle accident injury.
The Fine Print. It is important to know that hospital liens are separate from and in addition to any liens filed by other parties, such as healthcare providers or insurance companies.
Are there any special rules in Texas about hospital leins?
Yes, Texas has specific laws regarding hospital liens. In Texas, the Hospital Lien Statute, found in Chapter 55 of the Texas Property Code, governs the rights and procedures related to hospital liens. Here are some key points regarding hospital liens in Texas:
- Applicable Entities: The Texas Hospital Lien Statute applies to all hospitals including general hospitals, specialty hospitals, and nonprofit hospitals.
- Eligible Charges: Hospital liens in Texas can be asserted for any reasonable charges related to the care, treatment, or rehabilitation of an injured biker in connection with a motorcycle accident injury.
- Lien Amount: The hospital lien in Texas is limited to the reasonable and necessary charges for the biker’s care. It cannot exceed the amount of any settlement, judgment, or insurance proceeds related to the motorcycle accident injury.
- Biker’s Right to Dispute: Bikers in Texas have the right to dispute charges. Bikers may request an itemized statement of charges and can challenge any charges they believe are excessive or unrelated to the injury suffered in the motorcycle accident.
What happens if I don’t pay a hospital lien?
If a biker doesn’t pay a hospital lien, here are some risks:
- Legal Action: The hospital holding the lien may choose to file a lawsuit against the biker to obtain a judgment for the amount owed for the medical expenses related to the motorcycle accident injury.
- Collection Efforts: More likely, the hospital may engage in collection efforts to recover the debt. This can include contacting the biker directly to request payment, hiring a collection agency to pursue the debt on their behalf, or selling the lien to a debt collection company.
- Credit Impact: If the hospital or collection agency reports the unpaid debt to credit bureaus, it can negatively impact the biker’s credit score. This can make it more challenging for a biker to obtain loans, credit cards, or favorable interest rates in the future.
Do lawyers have special responsibilities for hospital liens?
In general, motorcycle injury lawyers are not personally responsible for paying hospital liens out of their own funds. However, they have certain obligations related to the handling of the lien and the distribution of settlement or judgment proceeds.
When a motorcycle injury lawyer represents an injured biker who has a hospital lien against their settlement or judgment related to the motorcycle accident, his or her motorcycle injury lawyer has a duty to address the lien:
- Negotiating and Resolving the Lien: The motorcycle injury lawyer may work with the hospital holding the lien to negotiate a reduction in the lien amount. This can involve demonstrating that the biker’s recovery is limited, disputing excessive charges, or negotiating a settlement for a lesser amount. All of this after a catastrophic motorcycle accident and surgery and often tortured recovery. This loan/lien bullshit can seem too, too much. That’s we you need Motorcycle Man. We know the best people for working to achieve a win win situation after a motorcycle accident injury. We talk with the hospitals. Any motorcycle injury lawyer who is respectful knows that these hospitals helped our biker clients (on credit) in our clients’ times of greatest need, saved our bikers’ lives! It’s not easy, brothers and sisters. But Motorcycle Man takes very seriously the need to negotiate medical bills. We believe our clients will use the moneys received for good.
- Distributing Settlement/Judgment Funds: Once a settlement or judgment is obtained, Motorcycle Man will be responsible for disbursing the funds. Motorcycle Man must pay the hospital lien from the proceeds before distributing the remaining amount to the injured biker.