Disclaimer: This article is for informational purposes only and does not constitute legal advice. Always consult a qualified attorney for advice on your specific situation.
Detailed Answer
1. Identify All Medical Liens and Outstanding Bills
Begin by obtaining an itemized list of all medical providers who treated you after the accident or incident. Request written statements showing the exact lien amounts each hospital, doctor or clinic has filed against your potential settlement. In Oregon, providers must perfect a lien under ORS 87.552–87.561 (ORS 87.552).
2. Understand Oregon’s Medical Lien Statute
ORS 87.555 grants first priority to hospital liens for charges that result from treatment related to personal injury. Providers must file within 90 days of the last treatment or they risk losing lien rights. Be aware that subrogation claims by health insurers or Medicaid may also attach to your recovery.
3. Verify Lien Validity and Amounts
Once you receive lien statements, review them carefully. Compare billed charges with the amounts typically allowed by insurance payers. You may discover discrepancies or inflated charges you can challenge. Ask each provider for documentation of services and billing codes.
4. Negotiate Reductions with Providers
Most medical providers expect negotiation. Present evidence of usual and customary rates or Medicare fee schedules. Politely request a reduction—25% to 50% off billed charges is common. Providers often accept a lump-sum payment that is less than their total lien if they get paid promptly.
5. Set Up an Escrow or Trust Account
If multiple liens and unknown amounts remain, propose placing your settlement funds into an escrow account. Tell the escrow agent to disburse payments only after all lien holders file final statements. This protects you from future claims and keeps your net recovery intact.
6. Incorporate Lien Payments into Your Settlement Agreement
Before you sign a release, ensure the settlement agreement specifically lists which liens will be paid and in what amounts. Ask the defendant or insurer to confirm they’ll withhold sufficient funds to cover these obligations.
7. Obtain Lien Releases
After disbursing payments, get a formal lien release or satisfaction letter from each provider. File these releases with the court or keep them with your personal records to avoid any future disputes.
Helpful Hints
- Request lien statements early in settlement talks to set realistic expectations.
- Compare billed rates to Oregon’s fee schedules or Medicare rates.
- Be proactive: challenge inflated bills before filing your lawsuit.
- Use escrow to protect your funds until all liens are resolved.
- Document every payment and secure lien release letters.
- Consult with an attorney experienced in personal injury and medical liens.