Hospital Liens and Car Accident Settlements in Florida
Under Florida law, certain medical providers are permitted to assert liens on personal injury settlements. In this context, a hospital lien is just a fancy way of saying that the hospital wants to be paid for services rendered and has claimed its right to be paid. The lien is a claim for reimbursement, and the hospital may seek to be paid from the settlement of your car accident or other personal injury claim. However, any such lien asserted by a medical provider is limited to treatment rendered as a result of the accident that is the subject of the personal injury lawsuit.
What Does it Mean When You Have a Hospital Lien in Florida?
After a car accident, truck accident, motorcycle accident, or any other accident, a person with serious injuries may need to go to the ER for treatment. In this context, the hospital will generally assert a lien in three different circumstances. First, the hospital may assert a lien when the hospital treated a person that did not have health insurance or was unable to pay for the treatment rendered. Second, the hospital may assert a lien if the person was insured, but the insurance company did not cover all the hospital bills. Finally, the hospital may assert a lien where another party was responsible for your injuries, like an at-fault driver, instead of filing with your insurance company.
Florida is one of the states that has no specific state statute regarding hospital liens. Instead, the counties in Florida make the rules regarding hospital liens. Importantly, a hospital lien in Florida is typically for the full amount of the medical services rendered, even if that amount of money is far more than the insurance company would have paid. This “full amount,” in fact, could be ridiculous and unreasonable and is sometimes referred to as the “Chargemaster Rate.”
Why Hospital Liens Can Be a Problem
A hospital lien is essentially a debt, and thus it can cause all the problems a typical unpaid debt could cause. Additionally, a hospital lien in Florida has priority over other benefits, like lost wages. Hospital liens are also typically not subject to a reduction for attorney fees.
Thus, attorneys may be hesitant to take a case with a hospital lien because the hospital gets paid before anyone else. If the hospital lien is for a big amount of money, the lawsuit may only benefit the hospital. In other words, the hospital may be the only one that gets paid.
Steps to Take When Facing a Hospital Lien on a Settlement
Although a hospital lien can have a powerful negative impact on you and your case, there are several things you can do to help your situation if you believe you have an unsettled hospital lien.
Verify the Hospital Lien Exists
Scams are extremely prevalent in today’s world. It’s an unfortunate reality. Scammers may have sent you something saying you have a hospital lien and asking for money. Before you consider sending a payment, you should check to make sure that there is, in fact, a hospital lien. As we talked about above, the laws regarding hospital liens in Florida are different in each county. Therefore, you will have to check with the clerk of court in your county to determine if you have a hospital lien.
Verify Whether the Hospital Notified You
Each county in Florida will have its own rules regarding the type of notice a hospital must give. However, if a hospital is able to assert a lien on your settlement proceeds, that hospital must give notice of its claim within the time set forth by the County Ordinance. Therefore, if you did not receive notice, and now the hospital is claiming a lien, the hospital’s lien may not be valid. In other words, the hospital may not have a right to your settlement proceeds if it did not follow the applicable procedural rules.
Verify the Amount of the Hospital Lien
Before you pay a hospital, whether it’s out of your personal injury settlement for your car accident or out of your bank account, you should verify exactly how much you owe the hospital. It’s not uncommon for a hospital to overbill its patients. Moreover, hospitals often fail to bill to insurance companies, as well as Medicare and Medicaid. As a result, the hospital’s purported lien could be much higher than what the hospital is entitled to. Thus, you should get all of your medical bills in hand, and you should be sure your lawyer reviews all of your medical bills to be sure you are not giving away money that is rightfully yours. Here are some of the ways you could reduce the hospital’s lien.
Look for Credits
If your insurance company has already paid for something, the hospital does not have the right to get paid twice. Additionally, if there are payments you made, including co-payments, these must also be removed from the lien. In other words, you should receive credit for whatever you and your insurance company have already paid. Additionally, you should receive credit for whatever any other person, like a family member, has paid on your behalf.
Look for Charges Unrelated to Your Personal Injury Claim
If a hospital is asserting a right to your settlement proceeds, the hospital only has a right receive reimbursement for medical treatment rendered as a result of the car accident or other incident that caused your injuries. In other words, the hospital can’t use your car accident settlement to pay for treatment you received that was unrelated to the car accident. Therefore, you should check the hospital lien to ensure all charges are related to the incident in question.
Look for Duplicate Charges
Hospitals may sometimes bill multiple times for a procedure. Thus, you should check your medical bills and the hospital lien to be sure that you were only charged once for your medical treatment. Check the date of treatment, the type of treatment, and the amount the hospital billed you for the treatment to verify whether the charge is valid or a double bill.
Contact a Lawyer at Our Office to Help with Potential Hospital Liens That Could Affect Your Settlement
At our law firm, we help our clients with their hospital liens by verifying the liens and negotiating them down to a lower amount when possible. Our goal is to maximize the amount of money our clients get in their pocket, and this includes working with medical providers and lien holders on our clients' behalf.
You can reach out to our law office for a free consultation at 321-LAWSUIT. We can help you better understand your legal rights and what needs to be done to get proper compensation.
You pay us nothing unless we recover money for you. There are no upfront costs and no retainer fees. We're here to help you whenever you need us.
Frequently Ask Questions Regarding Hospital Liens on Car Accident Settlements
What is a lien on a settlement?
A lien on a settlement is a legal claim by a third-party (such as a healthcare provider, insurer or government agency) that allows them to be reimbursed directly from the proceeds of your personal injury settlement or judgment before you receive your portion. It ensures that someone who paid for your medical treatment or benefits because of your injury is repaid out of the recovery you obtain.
Can My Health Insurance Put a Lien on My Settlement?
Yes — if your health insurance paid for treatment connected to your injury, many policies include a subrogation or reimbursement clause that gives the insurer the right to file a lien against any settlement you obtain to recover what they paid. In Florida, both insured plans and many government health programs may assert these rights, which means your settlement must account for that repayment.
Do I Have to Pay a Lien on my Settlement?
Yes — if a valid lien exists, you are generally required to satisfy it before or as part of your settlement distribution; otherwise the lien holder may legally assert their claim and reduce your net recovery. That said, many lien amounts are negotiable and your attorney can review and challenge unreasonable lien demands to maximize what you retain. We work to reduce liens and medical bills for our clients as part of the service we provide.
Can You Negotiate Medical Liens After a Settlement is Reached?
Yes. Medical liens can often be negotiated after a settlement has been reached. This generally occurs before the funds are distributed, and it can be a reason why distribution is delayed. Your attorney can contact healthcare providers or insurers to request a lien reduction, especially if the full payment would leave you with little or no recovery after fees and costs. Some lien holders are willing to accept a reduced amount in exchange for prompt payment, and our lawyers routinely negotiate these reductions to maximize the client’s net recovery.
When Are Liens Paid in a Personal Injury Case?
Liens are usually paid out of the settlement proceeds before you receive your portion of the funds. After your attorney receives the settlement, they typically use the trust account to pay valid liens—such as those from hospitals, health insurers, or government programs—along with case costs and legal fees. Once all verified liens and expenses are satisfied, the remaining balance is disbursed to you. This ensures compliance with lien laws and prevents future collection actions from unpaid lien holders.