Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney to address your specific circumstances.
Detailed Answer
What Is a Physician’s or Hospital Lien?
Under Tennessee law, certain medical providers—primarily hospitals—may file a lien against any recovery you obtain in a personal injury action. That lien secures payment for treatment you received as a result of the injury. See Tenn. Code Ann. § 29-2-101 et seq. (link: https://www.capitol.tn.gov/legislation/code/title29/chapter2/29-2-101.html).
Are Physician Liens Negotiable?
While Tennessee’s statute sets out the procedure and priority for hospital liens, it does not dictate the exact amount you must pay. Outside of emergency hospital liens, many physicians operate under private contracts or assign their bills to a hospital lien. In practice, you can often negotiate with the lienholder (hospital or physician) to reduce the total balance.
How Lien Negotiation Works
- Itemize Charges: Obtain an itemized statement showing services, dates, codes, and amounts.
- Compare Market Rates: Research usual-and-customary rates in your region. Present evidence that billed charges exceed norms.
- Raise Defenses: Challenge duplicate billing, unrelated services, or billing errors.
- Propose a Settlement: Offer a percentage of billed charges (often 30–50%) as full satisfaction.
- Document in Writing: Secure a lien release letter before closing the personal injury case.
Factors Courts Consider
Court decisions in Tennessee recognize reasonableness of medical fees. When a dispute arises, a court weighs:
- Customary regional fees
- Complexity and necessity of treatment
- Provider’s billed charges vs. negotiated Medicaid/Medicare rates
Why Negotiate?
Negotiating liens can significantly increase your net recovery. High medical bills often absorb most of your settlement. A negotiated reduction preserves funds for your legal fees, future care, or personal use.
Helpful Hints
- Engage your personal injury attorney early. They know lien negotiation tactics.
- Request statements directly from lienholders to avoid surprises at settlement.
- Compare charges to Tennessee’s workers’ compensation fee schedules for benchmarks.
- Explore if any provider has assigned its claim to a third party. The assignee may agree to a greater discount.
- Obtain a signed release or satisfaction of lien to prevent post-settlement claims.
- Track deadlines: Tennessee hospital liens must be filed within 90 days of discharge. (Tenn. Code Ann. § 29-2-103.)
- Keep all negotiation communications in writing. A clear paper trail strengthens your position.