When you recover from a personal injury in South Carolina, your treating physician may file a statutory lien against your settlement to secure payment for medical services. Negotiating that lien down can boost your net recovery.
Detailed Answer
Under South Carolina’s Hospital Lien Act (Title 44, Chapter 51 of the South Carolina Code), a physician may file a verified lien to secure payment for “professional services” rendered to an injured patient. Once filed, the lien attaches to any recovery you obtain by settlement or judgment. See S.C. Code Ann. §§ 44-51-120, 44-51-130 (Chapter 51).
You can negotiate a reduction in several ways:
- Direct discussion: Contact the provider’s billing department to request a discount or early-pay reduction. Many practices accept a lower lump-sum payment to avoid litigation and delays.
- Structured proposals: Offer payment of a specific percentage of your total recovery rather than the full billed amount. Physicians often accept 40–60% of billed charges.
- Court petition: If negotiations stall, file a petition in the circuit court where your case lies. Under S.C. Code Ann. § 44-51-180, the court can determine the reasonable value of services. Providers often settle once they face a judicial review.
Key legal points:
- The lien only secures amounts actually billed and not paid by insurance.
- Providers must file their lien within 90 days after you notify them of the claim. See S.C. Code Ann. § 44-51-130.
- A lien cannot exceed the reasonable value of services rendered. Courts will compare usual and customary rates.
- After full payment of the agreed or court-approved lien, the provider must file a satisfaction of lien.
Helpful Hints
- Collect all medical bills and compare them to usual and customary rates in your region.
- Get fee quotes from multiple providers to establish a baseline for negotiations.
- Document all communications and confirm any agreement in writing before closing your settlement.
- Consider involving your personal injury attorney early to leverage their negotiation experience.
- Be prepared to use the court process under S.C. Code Ann. § 44-51-180 if providers won’t budge.
Disclaimer: This article is for educational purposes only and does not constitute legal advice. Always consult a qualified attorney to discuss your specific situation.