How to Negotiate Physician’s Liens in Montana
When you settle a personal injury claim in Montana, medical providers may have filed liens against your recovery under Mont. Code Ann. § 71-5-108. These liens secure payment for uncompensated care you received for injuries caused by a third party. While Montana statutes establish lien rights and priorities, they don’t fix the final amount. You can—and often should—negotiate lien balances to maximize your net recovery.
Montana Lien Framework
Under Mont. Code Ann. § 71-5-108, a hospital or medical clinic that provided unpaid care may file a lien against any judgment or settlement you obtain. The lien amount generally equals the provider’s usual and customary charges, not to exceed 30% of the recovery under Mont. Code Ann. § 71-5-110. Lien claimants must serve notice and file within strict deadlines. If they miss those steps, you can challenge or even eliminate the lien.
Negotiation Strategies
Because providers want to avoid collection costs and risk of nonpayment, they frequently accept reductions. Follow these steps:
- Request a detailed lien statement and itemized bills. Compare charges to insurer “allowed amounts.”
- Identify procedural defects (late filing, improper service) to strengthen your bargaining position.
- Propose a lump-sum payment at a percentage of billed charges or insurer-allowed rates—often 30–50% of full amount.
- Obtain written confirmation of any agreed reduction or waiver before disbursing settlement funds.
Enforcing or Challenging Lien Reasonableness
If a provider refuses a reasonable reduction, Montana law lets you petition the district court for a lien review. Under Mont. Code Ann. § 71-5-111, the court will weigh the lien’s validity, amount and your circumstances. A judicial determination can cap the lien at a fair value or eliminate it entirely.
Practical Tips
Start negotiations early; engage the provider’s billing department or counsel. Be transparent about your settlement range. Emphasize that accepting a compromise promotes faster payment and avoids litigation. Document all communications and always secure a lien release or stipulation in writing.
Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Helpful Hints
- Keep track of all lien deadlines. Late filings may void medical liens.
- Obtain insurer explanation of benefits (EOBs) to benchmark customary rates.
- Always get a written lien waiver before disbursing settlement funds.
- Consider consulting an attorney experienced in Montana lien law for formal negotiations.
- Use Montana Trial Court e-filing to verify lien filings and schedules.