Disclaimer: This article is for educational purposes only and does not constitute legal advice. Please consult a qualified attorney for advice tailored to your situation.
Detailed Answer
After an injury, medical providers in South Dakota may assert liens against any third-party recovery you obtain. Under SDCL 21-7-1 (https://sdlegislature.gov/Statutes/Codified_Laws/21-7-1), a provider must file a written notice within 180 days of first treatment. The lien attaches to settlement proceeds, judgments, or awards (SDCL 21-7-7, https://sdlegislature.gov/Statutes/Codified_Laws/21-7-7).
To maximize your net recovery, negotiate these liens down by following several key strategies:
1. Verify Lien Validity and Timing
Confirm the provider filed notice within the 180-day deadline (SDCL 21-7-8). An untimely lien may be unenforceable. Ensure the provider’s name, address, and treatment dates match your records.
2. Obtain an Itemized Bill and Medical Records
Request a detailed statement of services and copies of medical records. Compare billed charges against South Dakota’s usual and customary rates. Providers must limit liens to reasonable charges (SDCL 21-7-27, https://sdlegislature.gov/Statutes/Codified_Laws/21-7-27).
3. Challenge Unreasonable or Unrelated Charges
Review every line item. Challenge costs for services that fall outside your injury treatment or exceed market standards. Research average local medical fees to support your position.
4. Leverage Provider Policies and Tort Thresholds
Different hospitals use different fee schedules. Some will accept 40–60% of billed charges to close liens quickly. Use these benchmarks in negotiations.
5. Bundle and Prioritize Liens
If multiple providers hold liens, negotiate a global reduction. Address the largest liens first to free up settlement funds for smaller providers.
6. Use Deadline Leverage
Set a firm deadline for lien reduction. Providers often concede to close files and avoid collection costs. A written offer with an expiration date creates urgency.
7. Engage Your Personal Injury Attorney
Your attorney can manage lien negotiations, coordinate with providers, and escrow holdbacks to ensure all liens clear before final distribution.
Helpful Hints
- Gather all medical bills and notices immediately after settlement.
- Keep detailed records of communication with providers.
- Document local usual and customary charges for reference.
- Consider hiring a medical-lien negotiation service for complex cases.
- Account for any Medicaid or Medicare liens under SDCL 28-17-31 https://sdlegislature.gov/Statutes/Codified_Laws/28-17-31.
- Review South Dakota lien statutes at sdlegislature.gov for updates.