Detailed Answer

When you settle a personal injury claim in Pennsylvania, you often assign your right to payment to medical providers in exchange for treatment. Those providers may claim a lien on your settlement. You can usually negotiate these liens to maximize your net recovery.

1. Understand Pennsylvania’s Lien Framework

Pennsylvania’s Hospital Lien Statute lets certain providers secure payment through liens under 42 Pa.C.S. § 7102. Although the statute uses the term “hospital,” licensed practitioners and professional corporations that render treatment can file liens under this law.[42 Pa.C.S. § 7102] Priority rules for these liens appear at 42 Pa.C.S. § 7104.[§ 7104]

2. Identify All Medical Liens

Start by requesting an itemized ledger from each provider or their assignment agent. Confirm balances, dates of service, and any payments your health insurer already made.

3. Leverage Insurance Contracts

If you have health insurance, providers must accept a contracted rate. Use your insurer’s Explanation of Benefits (EOB) to show that your insurer paid a lower “usual and customary” fee. Providers often accept the EOB rate rather than full billed charges.

4. Negotiate a Global Reduction

Medical providers frequently agree to reduce their lien in exchange for prompt, lump-sum payment. You can propose a percentage reduction—commonly 30–50%. Smaller practices may accept deeper discounts to secure immediate payment.

5. Use Settlement Timing as Leverage

Offer to pay the reduced balance within a fixed period after settlement funding. Speedy payment often motivates providers to accept a steeper discount.

6. Document the Agreement

Obtain a written lien release or satisfaction letter that confirms the reduced amount and releases any further claim. Without this document, a provider may try to collect post-settlement.

Note: If a provider refuses to negotiate, you can petition the court to determine lien validity and reasonableness of charges before distributing settlement funds.

Helpful Hints

• Review each bill for duplicate charges or services you did not receive.
• Obtain your insurer’s EOB to compare billed versus allowed amounts.
• Approach smaller providers first—they often have more flexibility to discount.
• Keep all correspondence in writing—emails or letters serve as evidence of offers and agreements.
• Consider involving your attorney—experienced counsel can handle lien negotiations and court filings.

Disclaimer: This article is for educational purposes and does not constitute legal advice. Always consult a qualified attorney for guidance on your specific case.