Disclaimer: This article is for educational purposes only and does not constitute legal advice.
Detailed Answer
When you’re handling a personal injury claim in Indiana, medical providers often file liens against your settlement or judgment. Indiana’s Hospital Lien Act (IC 32-28-7) allows hospitals and certain health care providers to assert a lien for unpaid services related to an injury. But you don’t have to accept the full billed amount. Here are proven strategies to reduce those liens and maximize your net recovery:
1. Verify Lien Validity and Priority
First, ensure the lien complies with Indiana Code § 32-28-7. Check that the provider:
- Served written notice within 30 days of each admission or service (IC 32-28-7-2).
- Recorded the lien in each county where the patient received treatment (IC 32-28-7-4).
- Sued to enforce the lien within 2 years after the last service (IC 32-28-7-9).
If any of these requirements are missing, you can file a motion to invalidate or reduce the lien.
2. Obtain an Itemized Statement
Request a detailed billing ledger. Compare billed charges to the:
- Medicare allowable rate.
- Indiana Medicaid fee schedule.
- Usual and customary charges in your county.
You can argue that the billed rate is excessive compared to these benchmarks.
3. Negotiate Based on Payment Standards
Many providers will accept a percentage of billed charges—often 30%–60%—as full satisfaction. Use the Medicare or Medicaid rates to justify a lower offer. For example, if the provider’s line-item total is $10,000, but the Medicare rate is $4,000, you can propose 50% of $4,000 ($2,000) as a reasonable compromise.
4. Leverage Case Risk and Timing
Hospitals may prefer a quick resolution over the cost and uncertainty of litigation. Highlight:
- Case strengths and weaknesses.
- Probable timeline to trial.
- Costs of enforcing the lien in court.
This may encourage them to accept a lower lump-sum payment.
5. Use a Lien Resolution Service or Counsel
Specialized firms and attorneys know hospital lien law inside out. They negotiate nationwide discount schedules with large systems. Their fees are often a fraction of the savings they secure.
6. Draft a Secured Release Agreement
Once you reach terms, get a written lien release or satisfaction document. Record it in the same county records office where the lien was filed to clear the title on your settlement funds.
Helpful Hints
- Start negotiations early—ideally while your case is pending.
- Keep copies of all lien notices, correspondence and payment benchmarks.
- Build a comparative cost chart showing billed vs. allowable rates.
- Remain courteous but firm when speaking with billing departments.
- Confirm any agreed reductions in writing before disbursing settlement funds.
- Consult a qualified attorney if the provider refuses reasonable concessions.