Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a licensed attorney in Virginia for guidance on your specific situation.
Detailed Answer
1. Understand Virginia’s Medical Lien Statutes
Under Virginia Code §8.01-66.3, hospitals and certain medical providers may file liens against personal injury settlements, verdicts, or awards. These liens cover “reasonable charges” for medical services. Review the lien notice and verify proper filing under the statute: Va. Code §8.01-66.3.
2. Obtain and Analyze All Medical Records and Billing Statements
Request detailed, itemized statements for every treatment. Look for duplicate charges, coding errors, or services not directly related to the injury. Compare billed amounts to Medicare or Virginia Medicaid fee schedules. Providers often bill inflated rates before negotiation.
3. Challenge Reasonableness and Seek Adjusted Balances
Under Va. Code §8.01-66.4, you can petition the court to review the reasonableness of charges. As an alternative, provide benchmarks—such as published fee schedules—and request the provider accept those rates. Many will agree to write off excess balances rather than incur enforcement costs.
4. Negotiate a Lump-Sum Payoff
With a complete file in hand, propose a one-time payment. A common range is 40–60% of the billed amount, depending on the provider’s willingness and the strength of your challenge. Emphasize quick resolution and avoidance of further legal expenses.
5. Leverage Multiple Liens for a Global Settlement
When facing several liens, coordinate a global negotiation. Providers are more likely to offer steeper discounts when they know you must settle all liens to distribute proceeds to your client.
6. Use Timing to Your Advantage
Initiate lien negotiations before submitting a settlement demand or before the court enters a verdict. Early talks create leverage, as providers prefer certainty over prolonged enforcement or court hearings.
Helpful Hints
- Keep organized copies of all correspondence, bills, and medical records.
- Obtain an independent medical bill review to spot coding errors.
- Use public fee schedules (Medicare, Virginia Medicaid) as negotiation anchors.
- Consider a medical billing advocate for complex or high-value liens.
- Send formal demand letters and cite relevant statutes to demonstrate your knowledge.
- Time your negotiations to coincide with settlement discussions for maximum leverage.