Detailed Answer
When you reach a settlement in an Ohio personal injury case, hospitals and insurers may assert statutory liens against your recovery. Under Ohio law, you must identify and resolve these liens before disbursing settlement proceeds. Here are the key steps:
- Conduct a Lien Search. Ohio R.C. 2323.41–.47 grants hospitals and medical providers a lien on personal injury recoveries. Search the county recorder’s office for any filed liens under R.C. 2323.42. Request lien statements from all treating hospitals and providers.
- Request Insurance Subrogation Details. Health insurers and third-party administrators have subrogation rights under R.C. 3923.44. Notify your insurer in writing of the claim and request a payoff statement. Review all health, auto, or disability policies for subrogation clauses.
- Provide Timely Notice. Under R.C. 2323.43, you must notify lien claimants within 30 days after hiring an attorney or after settlement negotiations begin. Send certified letters to each hospital and insurer indicating your intent to settle.
- Analyze and Challenge Liens. Review each lien for accuracy. If you believe charges are excessive or unrelated, you may file a motion to reduce the lien under R.C. 2323.47. Courts can adjust lien amounts if they exceed the reasonable value of services.
- Negotiate Payoff Amounts. Many providers will accept a reduced amount in exchange for prompt payment. Negotiate discounts or payment plans directly with hospitals or insurers. Obtain written payoff letters and lien releases.
- Obtain Lien Releases and Distribute Funds. After payment, secure lien releases or satisfaction certificates. Keep records. Then disburse the remaining settlement funds to your client accordingly.
Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a licensed attorney to address your specific situation.
Helpful Hints
- Start lien searches early to avoid surprises at settlement.
- Maintain a detailed file of all medical bills and insurer communications.
- Watch statute deadlines: late notice can waive lien defenses.
- Consider escrow arrangements if negotiations extend past closing.
- Ask providers for itemized billing to spot unrelated charges.