Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance on your specific situation.
Detailed Answer
When you incur medical expenses due to an injury, hospitals and certain healthcare providers in Tennessee can file liens on any settlement or judgment you receive. Under the Hospital Lien Act (Tenn. Code Ann. § 29-22-101 et seq.), providers have a statutory right to secure payment before you receive your award.
Follow these steps to handle medical liens and outstanding bills when negotiating a settlement:
- Identify all medical providers and insurers. Compile a complete list of every facility and insurer that paid or provided treatment. Request written lien statements and subrogation demands promptly.
- Verify lien validity. Tennessee law requires providers to file a lien within 90 days after your last treatment (Tenn. Code Ann. § 29-22-105). Confirm each lien meets these deadlines and contains correct billing details.
- Obtain itemized bills. Ask providers for detailed, itemized medical bills. Review charges with your attorney to identify potential coding errors or duplicate entries.
- Negotiate lien reductions. Most providers are willing to reduce their liens in exchange for prompt, lump-sum payment. Your attorney can leverage negotiations to lower the total amount owed.
- Address insurer subrogation. If your health insurer paid medical bills, it may have subrogation rights. Obtain a subrogation statement and negotiate to minimize the insurer’s share.
- Use an escrow account. Place settlement funds in escrow to ensure valid liens and subrogation claims are paid before disbursing your net recovery.
- Secure written lien releases. Before finalizing your settlement, obtain written releases from each provider and insurer. This protects you from future collection attempts.
Helpful Hints
- Track all medical records and correspondence in one organized file.
- Request lien and subrogation statements early to avoid delays.
- Review every bill line-by-line for accuracy.
- Work with your attorney on mediation if providers contest reductions.
- Understand your health plan’s subrogation terms to negotiate effectively.