Detailed Answer
In Ohio personal injury cases, physicians and medical providers can secure payment for past services by filing a statutory lien against any recovery you obtain. This lien arises under Ohio Revised Code § 2303.20 et seq. (ORC 2303.20). Understanding and negotiating this lien can maximize your net recovery.
1. Nature of a Physician’s Lien
Under ORC § 2303.20, any person or entity that furnishes treatment, maintenance, or support to an injured party may file a lien to ensure payment. The lien attaches to the proceeds of any judgment, settlement, or award.
2. Filing Requirements and Lien Scope
Ohio law sets strict deadlines and scope for medical liens. A provider must file a notice of lien with the clerk of courts in the county where the claim is pending within 90 days after first furnishing care or within 90 days after discontinuing care, whichever is later (ORC 2303.24). The lien covers only charges for services already provided, not future or ongoing treatment.
3. Negotiation Strategies
Although the lien secures the full billed amount, you can often negotiate a reduction:
- Itemize and audit medical bills. Look for errors or unbundled services to reduce the balance.
- Leverage prompt payment. Offer a lump-sum payment in exchange for a percentage discount.
- Use cross-provider leverage. Negotiate reductions with multiple providers to maximize overall savings.
- Propose a structured payment plan. Enable smaller, timed payments if a lump sum is not feasible.
4. Enforcement and Litigation Considerations
If a provider chooses not to negotiate or accepts only partial payment, they may enforce the lien by filing suit and foreclosing on your recovery under ORC § 2303.26 (ORC 2303.26). Litigation adds legal fees and can delay resolution, so many providers opt to settle liens at a discount to avoid court costs.
By proactively negotiating liens, you can reduce your total legal obligations and keep more of your settlement or award.
Disclaimer: This article is for informational purposes and does not constitute legal advice.
Helpful Hints
- Obtain itemized statements from each medical provider.
- Retain an attorney experienced in personal injury to negotiate liens.
- Document all concessions in writing, including amount and release of lien.
- Prioritize negotiating high-balance liens first for greatest impact.
- Maintain clear communication with your adjuster and counsel throughout settlement discussions.