Detailed Answer
Overview
In Nevada, medical providers such as hospitals, clinics and physicians may file liens against any personal injury recovery to secure payment for treatment. These liens arise under NRS Chapter 108 (NRS 108.225 through NRS 108.265). Before finalizing a settlement or verdict, you must identify, validate and satisfy these liens to avoid post-settlement disputes.
1. Identify All Potential Lienholders
Begin by requesting your attorney to obtain a “lien search” or ask you to list every provider who treated you. Hospitals and physicians must record a lien by filing a Notice of Claim of Lien with the county recorder within 6 months after the last treatment (NRS 108.235).
2. Confirm Validity and Amount Owed
Once you know who filed liens, your attorney should request lien statements or itemized bills. Nevada law limits liens to “reasonable charges” for services directly related to the injury (NRS 108.225). Review each bill for accuracy and that services correspond to your injuries.
3. Negotiate Reductions
Many providers will accept reduced payment in full satisfaction of their lien. Your attorney can negotiate percentages off billed charges, especially with hospitals that bill at higher rates.
4. Reserve Funds in Trust or Escrow
Before you finalize your settlement, require the defendant or their insurer to deposit lienhold funds into an escrow account or your attorney’s trust account. Nevada rules allow this under NRS 108.250. This protects against third-party claims and ensures funds remain available.
5. Obtain Releases and Satisfactions
After payment, secure a “Release of Lien” or “Satisfaction of Judgment” from each provider. File these with the county recorder to clear the property’s title of any encumbrance.
6. Final Disbursement
Once all liens are released, your attorney can disburse the remaining settlement or judgment funds to you, less attorney fees, costs and any other valid subrogation claims (e.g., health insurer reimbursements).
Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney to discuss your specific situation.
Helpful Hints
- Start the lien identification process early to avoid last-minute delays.
- Double-check statute timelines: Liens must be filed within 6 months of treatment.
- Get itemized bills and challenge any charges unrelated to your injury.
- Negotiate reductions—providers often accept 30%–60% of billed rates.
- Use escrow or trust accounts to hold funds until all liens are resolved.
- Keep copies of all lien releases and file them promptly with the county recorder.