Detailed Answer

Before you distribute a personal injury settlement in Oregon, you must identify and resolve any hospital or insurer liens that could claim part of your recovery. Liens protect medical providers and insurers’ right to reimbursement for services paid on your behalf. Here’s how to navigate the process under Oregon law:

1. Collect Medical Records and Bills: Request all records and itemized billing statements from every provider (e.g., hospitals, imaging centers, labs). Review each statement for dates, services rendered, and amounts billed.
2. Search Public Lien Records: Oregon hospital liens arise under ORS 87.768. Check county lien records where treatment occurred to identify any filed liens in the injured party’s name or against the responsible party’s insurance.
3. Notify Potential Lienholders: Send a formal notice to every provider or insurer you suspect may have a lien. Request written confirmation of their lien amount, the legal basis, and any interest or fees accrued.
4. Verify Insurance Subrogation Claims: If your client’s health insurer advanced medical payments, the insurer may have subrogation rights under the policy contract. Review plan documents and state insurance regulations to confirm the insurer’s claim. You may need to consult federal law (e.g., ERISA) if the plan is ERISA-governed.
5. Demand Itemized Statements and Lien Releases: For each lien, request an updated, itemized statement that accounts for payments, write-offs, and adjustments. Ask for a conditional release of the lien upon payment in full or upon agreed reduction.
6. Negotiate Reductions and Payoff Amounts: Many hospitals and insurers will negotiate to reduce liens, especially if total billed charges exceed usual and customary fees. Use comparative cost data, Medicare rates, or contractual write-offs as leverage to lower the payoff.
7. Obtain Written Lien Releases: After payment, secure a written release or satisfaction of lien from each provider and insurer. For hospital liens under ORS 87.768, record the release with the county clerk where the lien was originally filed.
8. Include Lien Details in Settlement Statement: Prepare a detailed settlement disbursement sheet that lists gross settlement, attorney fees, litigation costs, each lienholder’s name and payoff amount, and net client recovery.
9. Confirm No Outstanding Claims: Verify with the client that no other medical providers or insurers remain unpaid. A final clearance search in lien records can help confirm that no new filings exist.
10. Disburse Funds: Once all liens are resolved and releases recorded, distribute settlement proceeds according to your settlement statement. Retain copies of payoff letters and releases in your file.

Disclaimer: This article provides general information and does not constitute legal advice. Consult a qualified attorney to address your specific situation.

Helpful Hints

• Start lien research early to avoid settlement delays.
• Compare billed charges to Medicare rates to support lien negotiations.
• Keep thorough records of all correspondence with providers and insurers.
• Use a title or settlement administrator if multiple lienholders exist.
• Verify that insurer subrogation rights aren’t preempted by federal law (ERISA).