Statutory Hospital Liens
Another important issue that has been coming up recently is Statutory Hospital Liens. Many of our motorcycle clients are transported by ambulance to an emergency hospital. In California, a hospital may file a statutory hospital lien seeking direct payment from any third-party recovery. Therefore, even if you do have health insurance, they may not submit their bill to health insurance which may only pay part of the bill, and, instead, file and serve a Statutory Hospital Lien seeking full payment of their emergency room bill.
For example, we had one client who had a medical bill from Western Medical Center for $17,000.00. Blue Cross had agreed to pay $1,800.00 on the bill and they agreed to accept it. However, after determining that there was a third party at fault, they paid back Blue Cross Insurance the $1,800.00 paid and filed and served by certified mail a Statutory Hospital Lien on the patient. They are, thus, statutorily entitled to reimbursement from any settlement for the entire balance of $17,000.00.
As such, a qualified California motorcycle attorney or California motorcycle lawyer is necessary to evaluate the requirements and satisfaction requirements of the Statutory Hospital Lien, and to attempt to have the lien reduced, or paid by health insurance. This is important as if there is a Statutory Hospital Lien, they may be entitled to be added as a "additional payee" on any settlement draft. This would dramatically reduce the net recovery to the motorcyclist, or motorcycle accident victim.
