Detailed Answer
Medical providers and hospitals often assert liens against personal injury settlements or verdicts under Washington’s hospital lien statutes. Understanding your rights and strategies to negotiate down these liens can boost your net recovery.
1. Identify and Verify Lien Claims
First, request detailed lien statements from each provider. Ensure they comply with Washington’s hospital lien requirements under RCW 7.70.020. Verify the services, dates, and amounts are accurate.
2. Assess Case Value and Allocate Costs
Estimate your total claim value, including pain, suffering, lost wages, and medical damages. Prioritize which liens to negotiate based on settlement allocations—medical expenses often carry stricter requirements than general damages.
3. Leverage Statutory Limits and Priorities
Washington law caps and prioritizes liens. Under RCW 7.70.065, hospital liens attach only after obtaining recovery. Use this to argue for lien reductions when your net recovery is limited.
4. Negotiate Percentage Reductions
Negotiate a reasonable percentage of the billed amount. Hospitals and larger providers often accept 30–50% of their billed charges. Smaller clinics may accept even lower rates.
5. Seek Global Lien Resolutions
If multiple providers hold liens, negotiate a global resolution. Offering a single discounted percentage to all lienholders can simplify settlement and encourage cooperation.
6. Use Structured Settlements and Payment Plans
Propose structured payments or installment agreements when a lump-sum reduction is not possible. This approach may persuade providers to lower total recoverable amounts in exchange for guaranteed payment streams.
7. Challenge Unreasonable Charges
Review billing codes for accuracy and compliance with Washington’s billing regulations. Dispute any duplicate or excessive services.
8. Document and Follow Up
Confirm all lien reduction agreements in writing. Ensure judgments or settlement orders reflect the negotiated lien amounts.
Helpful Hints
- Request itemized bills early. Delay can strengthen the lienholder’s position.
- Engage a liaison or paralegal to track deadlines under RCW 7.70.030.
- Consider mediation with lienholders for impartial resolution.
- Document all communications to avoid misunderstandings.
- Consult a personal injury attorney before finalizing lien agreements.
Disclaimer: This article is for informational purposes and does not constitute legal advice. For advice, consult a qualified attorney in Washington.