Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for advice about your specific situation.
Detailed Answer
In Oregon, if you receive a personal injury settlement, you generally must satisfy valid medical liens before you can use those funds freely. Medical providers—including hospitals, physicians, physical therapists and other health care entities—can file a lien against your recovery under the Oregon Hospital Lien Act. Here’s how it works:
- Statutory Lien Rights: ORS 87.390–87.447 grant hospitals and certain medical providers a lien on a patient’s tort recovery for bills related to injury treatment. See ORS 87.395 for definitions and ORS 87.420 for lien priority. ORS 87.395, ORS 87.420.
- Notice Requirements: A provider must send you a written lien notice within 60 days after your last treatment. The lien generally attaches only after notice and filing with the circuit court.
- Medicaid and Medicare Subrogation: If the Oregon Health Plan (Medicaid) paid for medical care, the state can assert a subrogation lien under ORS 147.497. ORS 147.497. Medicare conditional payments must also be repaid under federal law before settling.
- Settlement Disbursement: When your attorney negotiates a settlement, they will typically escrow funds to pay valid liens and attorney’s fees in the correct order of priority. Outstanding liens reduce the net amount that reaches you.
- Negotiating Liens: You may have leverage to negotiate down billed charges, especially if the billed amount far exceeds customary Oregon rates or the provider is willing to accept less in exchange for prompt payment.
- Enforcement and Penalties: If you fail to satisfy a valid lien, the provider can enforce it in court and may recover additional costs or interest. This can jeopardize your personal assets if you accept a settlement without clearing liens first.
In practice, clearing liens ensures a clean distribution of your settlement. Your attorney will coordinate with lienholders to verify balances, file releases upon payment, and finalize your recovery.
Helpful Hints
- Ask your lawyer for a detailed lien worksheet before settlement.
- Confirm each lienholder’s contact information and balance in writing.
- Check if any medical bills were paid by Medicaid or Medicare to avoid double payment.
- Consider hiring a medical billing advocate to audit large provider charges.
- Negotiate lien reductions—providers may accept 70–90% of billed charges.
- Review settlement documents carefully to ensure liens are listed and paid.