Detailed Answer
Under North Dakota law, medical providers have a statutory right to place liens on personal injury recoveries to secure payment for treatment. These liens help hospitals, physicians and other authorized providers recoup costs directly from settlement or judgment proceeds before you receive any net recovery.
1. Identify Eligible Lienholders
North Dakota Century Code Chapter 32-03.3 authorizes liens for:
- Licensed hospitals
- Licensed physicians and surgeons
- Ambulance services
- Qualified nursing or rehabilitation facilities
Confirm which providers treated you and which have formally asserted a lien.
2. Meet Filing and Notice Deadlines
Per NDCC § 32-03.3-03 (link), a provider must file its lien statement with the county recorder within 180 days of last treatment. The lien statement must include:
- Name and address of patient
- Amount owed
- Description of services and dates
- Reference to the claim for injuries
The provider must also serve written notice on you and any known insurer or attorney of record.
3. Negotiate Lien Amounts
Most personal injury attorneys carefully review each lien to ensure accuracy. They may negotiate reductions based on:
- Statutory caps or customary rates
- Health insurance write-offs
- Reasonable and necessary treatment standards
Negotiated lien amounts free up more settlement funds for you.
4. Allocate Settlement Proceeds
When you reach a settlement or obtain a verdict, your attorney typically deposits the gross proceeds into a client trust account. Next, they pay:
- Attorney fees and litigation costs
- Valid medical liens in priority order
- Any outstanding subrogation claims (e.g., Medicaid or private insurer rights)
Keep in mind that North Dakota recognizes insurer subrogation under NDCC Chapter 32-03.3 as well.
5. Satisfy and Release Liens
After payment, providers should issue a lien satisfaction or release document. You (or your attorney) must file this release with the county recorder to clear the property records per NDCC § 32-03.3-04 (link).
Disclaimer: This article offers general information only under North Dakota law. It does not constitute legal advice. Consult a qualified attorney for advice about your specific situation.
Helpful Hints
- Track deadlines: mark lien filing and notice dates on your calendar.
- Collect all billing statements and treatment records early.
- Request written lien amounts from each provider.
- Ask about potential reductions or charitable write-offs.
- Verify subrogation rights of your insurer or Medicaid.
- Confirm lien releases are filed with the county recorder.
- Keep copies of every document in your client file.