Detailed Answer
If you receive a personal injury settlement in Utah, medical providers—such as hospitals, doctors, and health insurers—may assert liens on your recovery to secure payment for treatment related to your injury. Under Utah Code §78B-5-820, a provider must file a written notice of lien with the court and serve it on all parties within 180 days after the last date of treatment or bill entry. Once perfected, the lien attaches to any proceeds from a settlement or judgment.
You generally must satisfy valid medical liens before disbursing settlement funds to yourself. Your attorney typically deducts lien amounts when allocating proceeds. Failure to pay a properly perfected lien can expose you or your attorney to liability. If you believe a lien is invalid or excessive, you can file an objection in the same court where your case is pending.
Liens may be negotiable. Under Utah Code §78B-5-821, you can meet with providers or enter mediation to agree on a reduced payoff. Courts also review lien amounts for reasonableness when disputes arise.
Helpful Hints
- Identify all providers early: Request an itemized list of medical bills and lien notices.
- Check lien deadlines: File objections within 30 days after notice (see Utah Code §78B-5-822).
- Negotiate payoffs: Many providers accept reduced lump-sum payments if you ask.
- Consider subrogation: Health insurers often have subrogation rights that create liens.
- Review settlement breakdown: Ensure attorney’s fees and court costs are allocated correctly before paying liens.
- Consult your attorney: They can advise on lien priority, fee allocation, and distribution strategies.
Disclaimer: This is not legal advice. It is for educational purposes only. Consult a qualified attorney to address your specific situation.