Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a licensed attorney for advice about your specific situation.
Detailed Answer
What Is a Physician’s Lien in North Dakota?
Under North Dakota law, certain health care providers—such as physicians, hospitals, and emergency medical services—may file a lien against any personal injury recovery to secure payment for services rendered. This right is codified at N.D. Cent. Code § 23-06-21. A properly filed lien attaches to your cause of action, claim, or judgment until the provider is paid.
Are Liens Negotiable?
Yes. North Dakota statutes set the lien amount at the provider’s actual charges, but they do not prohibit negotiation. Many providers recognize that full recovery of billed charges can be unlikely. They often agree to a reduced amount to avoid the risk and cost of enforcing a lien in court. Negotiation is a common practice to increase your net recovery.
Why Negotiate?
- Providers may accept discounted pay-in-full figures.
- You preserve more of your settlement or judgment.
- You avoid cumbersome lien enforcement proceedings.
How to Negotiate a Physician’s Lien
- Obtain an itemized statement showing each charge.
- Review and identify any duplicate, canceled, or unsubstantiated charges.
- Compare billed rates to usual and customary rates in your area.
- Contact the provider’s billing or legal department in writing.
- Propose a reasonable lump-sum payment or percentage reduction.
- Use leverage: limited insurance policy limits, risk of litigation, and timing of payment.
Considerations and Pitfalls
Before you finalize any negotiation:
- Ensure the provider agrees in writing to release the lien upon payment.
- Confirm you won’t face future collection activity.
- Check if any subrogation interests (e.g., Medicare or Medicaid) apply, as those liens follow federal rules.
- Remember that reducing a lien may affect how much an insurer or defendant offers.
Helpful Hints
- Keep detailed records of all medical bills and payments.
- Request written confirmation of any negotiated settlement with the provider.
- Work with an attorney experienced in personal injury and lien resolution.
- Act early: providers may be more flexible before filing formal enforcement actions.
- Verify that settlement funds disbursement complies with all lien releases and court orders.