Detailed Answer
In South Carolina, medical providers—including hospitals, physicians, and certain health care professionals—may place a lien on your personal injury recovery to secure payment for treatment. Understanding and satisfying these liens before finalizing your settlement or judgment is crucial to avoid post-settlement claims and ensure a clean distribution of funds.
1. Identify All Potential Liens
Medical liens in South Carolina typically arise under two statutes:
- Hospital liens: SC Code § 44-15-10 et seq. (t44c015).
- Health care provider liens in automobile and personal injury cases: SC Code § 38-73-10 et seq. (t38c073).
2. Obtain an Itemized Statement
Request a detailed, itemized statement of charges and payments from each provider that filed a lien. Confirm dates of service, codes for treatments, payments by health insurance, Medicare or Medicaid offsets, and any negotiated write-offs.
3. Review Lien Validity and Priority
Under SC Code § 38-73-30, liens attach to any settlement or judgment up to the amount billed. Hospital liens (SC Code § 44-15-50) generally take priority over other liens, then statutory provider liens, and finally attorney’s fees, subject to court approval.
4. Negotiate Reductions
Many providers will accept a negotiated reduction to settle the lien faster. Start negotiations once you know the full recovery amount. Submit your settlement figures to lienholders and request a pay-off quote. Document all communications in writing.
5. Incorporate Liens into Settlement Documents
When drafting the settlement agreement or presenting the judgment distribution to the court, list each lienholder and the agreed pay-off amount. South Carolina courts will not disburse funds until liens are satisfied or released.
6. Disburse Funds and Obtain Releases
At closing, pay each lienholder directly from escrow according to the negotiated amounts. Obtain lien releases or satisfactions in writing. File releases with the court clerk, if required, to clear title to your recovery funds.
Helpful Hints
- Early Identification: Ask your attorney to demand lien statements immediately after case intake.
- Document Insurance Payments: Provide proof of any coverage payments to reduce your lien exposure.
- Statute Deadlines: Hospital liens require filing within six months of final treatment (SC Code § 44-15-20).
- Priority Awareness: Know that hospital liens generally outrank other medical liens and counsel fees.
- File Releases Promptly: Record lien satisfyings with the court to prevent post-settlement disputes.
Disclaimer: This article provides general information under South Carolina law and does not constitute legal advice. Consult a qualified attorney to address the specifics of your situation.