FastCounsel

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney to address your specific situation.

Detailed Answer

1. Collect All Medical and Insurance Records
   Request itemized bills and statements from each hospital or provider. Obtain PIP (personal injury protection) payment records from your auto insurer. Having complete records helps identify all potential liens.
2. Identify Hospital Liens under New Jersey Law
   New Jersey hospitals may assert a statutory lien for services rendered to an injured patient. Under N.J.S.A. 2A:53A-7, a hospital must file a lien within 60 days after the final bill is issued. Review lien filings at your county clerk’s office or request confirmation directly from the hospital. N.J.S.A. 2A:53A-7
3. Identify Insurer Subrogation Rights
   Under New Jersey’s no-fault insurance law, PIP insurers who pay medical benefits may have a right to reimbursement from any third-party recovery. See N.J.S.A. 39:6A-4. Review your insurer’s Explanation of Benefits and demand statements to verify the amounts claimed. N.J.S.A. 39:6A-4
4. Send a Notice of Representation and Demand for Lien Statements
   Once retention occurs, serve each hospital and insurer with a Notice of Representation. Request written lien statements that specify amounts owed, the basis for the lien, and documentation supporting the claim.
5. Review and Challenge Charges
   Scrutinize each lien statement for accuracy. Compare billed charges to usual and customary rates. If charges appear inflated, dispute them in writing and ask for an itemized explanation.
6. Negotiate Lien Reductions
   It is common to negotiate reductions of hospital and insurer liens. Present case facts, hardship arguments or refer to billing audits. Many hospitals and insurers will agree to settle for a percentage of the billed amount.
7. Obtain Lien Release or Satisfaction Documents
   After resolving each claim, secure a signed Release of Lien or Satisfaction of Judgment. Ensure the document references the case name, date of injury, and amount paid.
8. Confirm Clearance Before Disbursing Funds
   Before final settlement distribution, confirm all liens are satisfied. A clean title ensures you avoid liability and preserve net recovery for the client or yourself.

Helpful Hints

• Maintain a lien tracking spreadsheet with deadlines and amounts claimed.
• Serve Notices and Requests by certified mail to establish proof of receipt.
• Engage a medical billing advocate to audit large hospital bills.
• Negotiate early—insurers and hospitals often concede more before litigation funding is finalized.
• Keep all correspondence and releases in the settlement file for future reference.