Detailed Answer
When you suffer injuries in Rhode Island and pursue a third-party claim, medical providers often assert liens or seek direct reimbursement. Proper handling of these liens and outstanding bills ensures you receive your fair share of the settlement. Below are the key steps under Rhode Island law:
Identifying Medical Liens in Rhode Island
Under the Hospital Lien Act, R.I. Gen. Laws § 9-20-1 et seq., a hospital may file a lien on a patient’s cause of action against a third party. To perfect the lien, the hospital must record a written notice with the recorder of deeds in the county where treatment occurred within 90 days of your last treatment. (See R.I. Gen. Laws § 9-20-3: https://webserver.rilin.state.ri.us/Statutes/TITLE9/9-20/INDEX.HTM)
Assessing Outstanding Medical Bills
Beyond hospital liens, doctors, therapists, and diagnostic labs may have unpaid bills. Request itemized billing statements from every provider. If you received health insurance or Medicaid benefits, your insurer or the state Medicaid program may claim reimbursement. Rhode Island’s Medicaid subrogation rules (R.I. Gen. Laws § 40-8-16.4) allow the state to recover costs from your settlement. (See https://webserver.rilin.state.ri.us/Statutes/TITLE40/40-8/INDEX.HTM)
Negotiating Lien Amounts
Your attorney can negotiate reductions or discounts on liens. Many providers prefer a smaller payment over protracted disputes. Be prepared to justify the reduction with case value estimates and cost-benefit arguments.
Escrowing Funds for Lien Resolution
If providers dispute their lien amounts or you cannot immediately resolve lien claims, your attorney can place settlement funds in escrow. This step protects you and the settlement payer while lien issues get sorted.
Allocating the Final Settlement
Before signing any settlement agreement, ensure the net amount after lien and bill payments meets your expectations. Allocate funds for attorney fees, costs, liens, and your compensation. Keep documentation of all payments to protect against future collection efforts.
Disclaimer
This article provides general information about Rhode Island law. It is not legal advice. Consult a qualified attorney for advice specific to your case.
Helpful Hints
- Obtain written copies of all lien notices and itemized bills early in your case.
- Verify that hospital liens were timely recorded under R.I. Gen. Laws § 9-20-3.
- Check for potential Medicaid or insurance subrogation claims.
- Consider negotiating lien reductions before finalizing your settlement.
- Use escrow to protect your interests when lien amounts are disputed.