Disclaimer
This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney to address your specific situation.
Detailed Answer
After a personal injury settlement in Tennessee, you generally must satisfy valid medical liens before you receive your net recovery. Tennessee law recognizes “hospital liens” and allows other medical providers, as well as health insurers and governmental programs like Medicaid, to assert lien rights.
1. Hospital Liens under Tenn. Code Ann. § 29-34-101 et seq.
Tennessee’s Hospital Lien Law, found at Tenn. Code Ann. § 29-34-101 et seq., allows a private hospital or physician to file a written lien for charges related to treating an injured patient. Key points:
- Provider must file the lien with the county clerk within 90 days of the last date of treatment (Tenn. Code Ann. § 29-34-104).
- The lien attaches to any judgment or settlement obtained by the patient against the party responsible for the injury.
- An invalid or untimely lien can be challenged and may be unenforceable.
2. Insurance Subrogation Rights
If your private health insurer paid your medical bills, it may have a contractual right to reimbursement—often called subrogation or reimbursement. Review your insurance policy language and any subrogation notices you received. Tennessee courts enforce these rights when properly asserted in writing.
3. Medicaid and Governmental Liens
Under Tenn. Code Ann. § 71-5-117, if Medicaid paid for your medical care, the state has a right to recover those payments from your settlement. The State must send a written notice and follow specific procedures to perfect its lien.
4. Negotiating or Reducing Liens
Medical providers frequently agree to reduce their liens in return for prompt payment or when the billed charges exceed customary rates. Your attorney can negotiate on your behalf to maximize your net recovery.
5. Distribution of Your Settlement
- Gross settlement amount received by your attorney.
- Deduct attorney’s fees and litigation costs.
- Set aside money to satisfy valid liens (hospital liens, subrogation, Medicaid).
- Pay remaining amount to you.
Helpful Hints
- Confirm that each medical provider filed a timely lien with the county clerk.
- Request itemized statements to verify billed charges.
- Check your insurance policy for subrogation language and deadlines.
- Negotiate lien reductions where possible—many providers accept less than the billed amount.
- Work with your attorney to supervise lien resolution and distribution of funds.
- Keep detailed records of all communications and payments related to liens.