FAQs: Medical Liens and Your Personal Injury Settlement in New Mexico
Detailed Answer
What are medical liens? A medical lien is a legal claim that a hospital or qualifying medical provider files against any settlement or judgment you recover in a personal injury case. In New Mexico, hospitals may assert liens under NMSA 1978, § 41-1-1. These liens secure payment for emergency or inpatient services you received due to the injury.
Who can file a lien? Under New Mexico law, only certain facilities—primarily hospitals—can file statutory liens. Private doctors, therapists or outpatient clinics typically cannot assert a lien unless you signed a separate assignment of benefits or your health insurer has subrogation rights.
Your obligation to pay: If a valid hospital lien exists, you must satisfy that lien out of your settlement or judgment before distributing the remaining funds. In practice, your attorney often negotiates with the hospital’s billing department to reduce the lien amount.
Key statute: NMSA 1978, § 41-1-1 sets the procedures and priorities for hospital liens. You can review the statute at NMSA § 41-1-1.
Medicaid and other subrogation rights: If Medicaid or your private health insurer paid for your care, they may have reimbursement rights under federal and state subrogation laws. Those claims usually arise separately from hospital liens and could reduce your net recovery further.
Negotiating liens: Most hospitals prefer a negotiated payoff rather than enforcing the full lien. Your personal injury attorney can often secure a reduced lump-sum payment, especially if your claim’s total value is limited.
Helpful Hints
- Review all lien notices immediately. Confirm they accurately reflect the treatment dates and amounts.
- Ask your attorney to itemize and challenge any questionable charges.
- Check whether private providers have any contractual assignment of benefits rights before settlement.
- Consider early lien negotiation—often hospitals will take 50–70% of billed charges.
- Keep copies of medical records, bills and lien statements in one folder for easy reference.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney to discuss your specific situation.