Detailed Answer

When you settle or win a personal injury case in Oregon, medical providers often hold liens against your recovery. These liens ensure providers get paid for treatment you received for your injury. Here’s how to satisfy them before finalizing your recovery.

1. Identify All Lienholders

Under Oregon’s Hospital Lien Act (ORS Chapter 87), hospitals and ambulances can record liens. Other medical providers may assert payment claims or subrogation rights. Also check for Medicaid (Oregon Health Plan) subrogation under ORS 179.505.

2. Verify Lien Validity

Oregon law requires providers to file a hospital lien with the county clerk within six months of your discharge and serve you with notice (ORS 87.012). Confirm each lien meets these rules. Invalid liens can sometimes be challenged or removed.

3. Gather Medical Bills and Lien Statements

Request itemized bills and official lien statements from each provider. Compare the billed amounts against usual and customary rates. This helps you negotiate reductions.

4. Negotiate Reductions

Most providers will accept less than their full billed amount to avoid litigation. Your attorney can:

• Offer a percentage of your total recovery in exchange for lien releases.
• Argue that billed charges exceed typical fees for similar services.

5. Obtain Lien Releases

Once you agree on a payoff, secure a written release from each lienholder. This document confirms the provider will not pursue additional payment from you.

6. Pay Liens from Your Settlement

At closing, disburse funds to satisfy approved liens before distributing net proceeds to the injured party. File a “Satisfaction of Lien” or “Partial Satisfaction” with the county clerk to clear the public record.

7. Address Medicaid Subrogation

If the Oregon Health Plan covered your care, the state can seek reimbursement under ORS 179.505. Contact the Department of Justice’s Medicaid Compliance Unit to negotiate a reduced payoff, often a percentage of net recovery after other liens.

8. Finalize Your Recovery

After all liens resolve, confirm the court or claims administrator issues a final distribution order. Keep records of all payments and releases for your files.

Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney about your specific situation.

Helpful Hints

• Start lien investigations early—validity challenges take time.
• Request lien payoff quotes in writing.
• Ask about hardship or charitable write-offs if your recovery is limited.
• Track deadlines for filing satisfactions with the county clerk.
• Keep your attorney informed of any new medical bills after settlement.