Detailed Answer
Disclaimer: This information is for educational purposes only and does not constitute legal advice. Consult a qualified attorney for advice on your specific situation.
In Oregon, physicians and surgeons may assert liens on a patient’s personal injury recovery under ORS 87.362. These liens secure payment for medical services related to the injury. The lien attaches to any claim or cause of action the patient has against a third party for damages. See ORS 87.362(1) (Physician’s Lien).
While ORS 87.362 guarantees a lienholder’s right to payment, it does not fix the lien amount at the billed charges. Physicians will often agree to reduce their lien to facilitate settlement and avoid litigation over amounts due. A negotiated reduction can increase your net recovery. Consider these key points:
- No statutory cap: Oregon law does not limit how much you and your physician can negotiate. The full billed amount can be reduced by agreement.
- Contract basis: A lien reduction is a private agreement. Your attorney typically offers a lump sum in exchange for a lien release.
- Priority and distribution: Under ORS 87.366, liens rank equally among medical lienholders and are paid after attorney fees and costs. Negotiating down helps preserve more funds for you. ORS 87.366.
- Written release: Always get a written lien release or satisfaction document from the medical provider to confirm the agreed reduction and removal of the lien under ORS 87.365. ORS 87.365.
Remember, negotiating a lien reduction requires careful review of medical records, billed charges, usual and customary fees, and your overall settlement strategy. Your attorney should handle communications and obtain written confirmation of any agreement.
Helpful Hints
- Obtain an itemized medical bill to verify services and charges.
- Consult your attorney before making any offer to lienholders.
- Request a written lien reduction agreement before disbursing settlement funds.
- Factor attorney fees and case costs into your overall settlement budget.
- Confirm discharge of the lien by filing a lien satisfaction with the county clerk when required.
- Be aware of potential subrogation claims from health insurers.
- Keep all correspondence and agreements in writing to avoid disputes later.