Understanding Medical Liens and Outstanding Bills in South Carolina Settlements

Detailed Answer

When you negotiate a personal injury settlement in South Carolina, healthcare providers may assert liens for medical services. Under the South Carolina Hospital Lien Act (S.C. Code Ann. § 38-73-645), a hospital that treats an injured patient can file a lien against any settlement, judgment or award. A valid hospital lien must be filed in the county where treatment occurred within six months of the patient’s last treatment. See S.C. Code Ann. § 38-73-645.

Medical providers such as physicians, ambulatory surgical centers and care facilities also may have liens under S.C. Code Ann. § 44-9-10 for services rendered. See S.C. Code Ann. § 44-9-10. These liens attach only to that portion of the settlement that covers past medical expenses.

Insurers (including Medicaid) have a right of subrogation and may seek reimbursement for payments made. Medicaid’s lien rights arise under S.C. Code Ann. § 44-6-470. See S.C. Code Ann. § 44-6-470. Always verify statutory deadlines and procedures to enforce or challenge these liens.

To resolve liens during settlement:

1. Obtain itemized, detailed medical bills and lien statements.
2. Confirm each lien’s validity, amount and priority.
3. Negotiate reductions by disputing unnecessary or excessive charges.
4. Request a lien payoff letter specifying exact amounts and deadlines.
5. Allocate settlement funds to cover valid liens before distribution.
6. Consider escrow: hold disputed funds until lien resolution.

Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified South Carolina attorney for legal guidance tailored to your case.

Helpful Hints

• Review each provider’s lien filing date to ensure timely enforcement.
• Challenge errors: billing codes, dates, duplicate charges.
• Discuss Medicare set-asides if Medicare covered your treatment.
• Keep detailed records of all correspondence with lienholders.
• Work with your attorney or a lien resolution service to streamline the process.