Disclaimer: This article provides general information and is not legal advice. Consult a qualified attorney about your specific situation.
Detailed Answer
Under South Carolina law, health care providers and hospitals may assert liens against your personal injury recovery to secure payment for medical or nursing services. These liens fall under the South Carolina Health Care Provider Lien Act (S.C. Code Ann. § 38-71-10 et seq.). You should understand how these liens work and what obligations you have when you settle a personal injury case.
1. Statutory Basis for Medical Liens
The Health Care Provider Lien Act (S.C. Code Ann. § 38-71-10 et seq.) grants a lien to any hospital, physician, or other licensed provider who furnishes services in connection with injuries caused by another party’s negligence. Once the provider files a valid lien notice, it attaches to any tort recovery you obtain.
• Lien Creation: A provider must deliver written notice to you within 90 days of your last treatment. See S.C. Code § 38-71-30.
• Perfection and Priority: The lien perfects upon filing and takes priority over unsecured creditors. See S.C. Code § 38-71-50.
2. Obligation to Pay Liens From Settlement Proceeds
When you reach a settlement or obtain a judgment, valid liens must be satisfied from the gross recovery before you receive your net share. Courts often require escrow of lien amounts or direct payment to lienholders. Failure to pay valid liens can expose you to separate collection actions.
3. Challenging or Negotiating Liens
You may challenge a lien’s validity if the provider missed the 90-day deadline, served improper notice, or charged excessive rates. If the statute’s procedural requirements are not met, you can petition the court to discharge the lien. Even valid liens are negotiable—providers often accept a reduced amount rather than engage in litigation.
4. Practical Steps in Your Settlement
- Obtain itemized lien statements and verify last treatment dates.
- Confirm that each lienholder complied with S.C. Code Ann. § 38-71-10 et seq.
- Set aside the lien amount in escrow or request your insurer/defendant to pay lienholders directly.
- Negotiate reductions in writing and secure lien releases upon payment.
- Document every transaction to avoid future claims.
Helpful Hints
- Gather all medical bills promptly and track treatment dates.
- Review each lien for procedural compliance.
- Negotiate lien amounts before settlement papers are filed.
- Ask for written releases after you satisfy a lien.
- Consider hiring an attorney to manage lien disputes.