Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Detailed Answer
When you resolve a personal injury claim in Utah, medical providers may assert liens against your recovery under Utah Code §38-11-63. You must satisfy these liens before you distribute any settlement or verdict proceeds. Here is the typical process:
- Identify All Medical Liens
You or your attorney should collect itemized billing and lien notices from every healthcare provider who treated your injuries. Under Utah Code §38-11-63, providers must file a written notice within 30 days of first providing services. - Verify Lien Validity
Confirm each lien complies with statutory requirements. Providers must record liens in the county recorder’s office and serve you or your attorney properly. Untimely or defective notices may be unenforceable. - Estimate a Lien Holdback
When negotiating settlement, calculate a reserve amount equal to the total lien amounts plus a buffer for any additional charges. Your settlement agreement should expressly state that part of the funds will satisfy medical liens. - Negotiate or Challenge Amounts
Medical providers often agree to reduce their billed charges. Review all bills line by line and dispute unreasonable or unrelated charges in writing. Many providers negotiate down to usual and customary rates. - Pursue Court Resolution if Needed
If you cannot resolve a lien through negotiation, you may file suit under Utah Code §38-11-67. A court hearing can determine the enforceable amount of a disputed lien. - Disburse Settlement Funds
Once all liens are resolved—by payment or court order—issue checks directly to the providers. After lien satisfaction, distribute any remaining funds to yourself and other claimants.
Following these steps helps you clear all medical bill liens and avoid future collection actions against your personal injury recovery.
Helpful Hints
- Request lien payoff statements early, ideally before finalizing settlement terms.
- Keep settlement funds in your attorney’s trust account until you verify lien satisfaction.
- Track enforcement deadlines: providers must enforce liens within one year under Utah Code §38-11-65.
- Document all communications with medical providers in writing to support any disputes.
- Consider mediation or a lien resolution conference to avoid court litigation.