Disclaimer: This article provides general information on New York law. It does not constitute legal advice.
Detailed Answer
In New York personal injury cases, you may face two types of medical liens: statutory hospital liens under Real Property Actions and Proceedings Law (RPAPL) Article 52, and contractual liens asserted by private physicians. Understanding each type helps you negotiate or challenge liens and increase your net recovery.
1. Statutory Hospital Liens
Statutory Basis
Under RPAPL § 881, a hospital, clinic or sanitarium may file a lien on your settlement or verdict for the reasonable value of services rendered. See RPAPL § 881.
Challenging a Hospital Lien
- Unreasonable Value: RPAPL § 881 limits liens to the “reasonable value” of care. If billed charges far exceed usual and customary fees, you can demand a fair reduction.
- Timeliness: The lien must be filed in the clerk’s office within 90 days after the action accrues. Failure to comply allows a court to discharge the lien entirely under RPAPL § 881-d. RPAPL § 881-d.
- Allocation Disputes: If multiple providers file liens, you may negotiate a global reduction to simplify settlement.
2. Contractual Physician Liens
Private doctors and specialists cannot invoke RPAPL Article 52. Instead, they rely on retention agreements or assignments you sign. These agreements allow them to claim payment from your recovery. Unlike statutory liens, contractual liens carry no fixed filing deadline or form requirements.
Negotiation Opportunities
- No Statutory Cap: Since charges are purely contractual, you can negotiate directly with the provider for any discount.
- Leverage Settlement Timing: Many doctors will accept a substantial reduction if you can pay promptly at closing.
- Use Market Rates: Show Medicare or insurance-negotiated fees to argue your billed charges exceed reasonable value.
Key Negotiation Strategies
- Gather Data: Compile provider invoices, CPT codes and Medicare fee schedules. Highlight any gaps between billed and usual rates.
- Draft a Global Proposal: Present a single offer covering all liens. Use your attorney’s letterhead to increase seriousness.
- Threaten Lien Discharge: For hospital liens, cite RPAPL § 881-d if the notice is late or improperly served.
- Bundle Bills: Offer a prompt pay discount (often 30–50%) if providers agree in writing to release all claims upon payment.
- Allocate Wisely: In your settlement memo, specify amounts for liens, attorney fees, litigation costs and net client recovery.
- Keep Records: Obtain lien waivers or releases from each provider immediately upon payment.
When to Seek Professional Help
If you face complex or high-value liens, consider consulting a New York personal injury attorney. They understand RPAPL mechanics, common negotiation benchmarks and court practice for lien challenges.
Helpful Hints
- Confirm lien type: statutory (hospitals) vs. contractual (private physicians).
- Review RPAPL § 881 et seq. for hospital lien rules.
- Document any procedural defects or late filings.
- Use Medicare fee schedules to support fair-value arguments.
- Obtain written confirmations of any agreed reductions.
- Keep a clear settlement worksheet to track all deductions.