Securing compensation after an injury is rarely simple. On top of recovering, you may also be dealing with insurers, courts, and providers seeking payment — and you may have heard about medical liens without knowing how they affect your case. A medical lien is a way for a healthcare provider or insurer to claim the right to be paid from your settlement.
What is a medical lien
A medical lien gives a provider a right to be repaid for treatment out of your injury recovery. There are two main types:
- Contractual medical liens — an agreement among you, your attorney, and your medical provider guaranteeing the provider is paid first when you obtain a settlement. In exchange, you can keep treating while the case is pending without paying out of pocket.
- Statutory medical liens — claims created by statute rather than by agreement. You do not voluntarily enter into them; they are generally used to pursue repayment of delinquent bills.
How medical liens work in a lawsuit
Both contractual and statutory liens seek payment from the settlement award. If you entered a contractual lien, you can continue treatment while you wait on the settlement without paying out of pocket.
Once the award is determined and ready to be disbursed, any outstanding liens are paid first. If you receive a $100,000 settlement from a car accident and a hospital holds a $30,000 lien for treatment, the hospital is paid first and you receive the remaining $70,000.
Who can file a medical lien
Under Louisiana law, a medical lien can be filed by any healthcare professional who treated you — including doctors, hospitals, and other providers. Your health insurer may also file a lien to be reimbursed for expenses it paid during your treatment.
What happens if you lose your case
It depends on the lien. You generally remain responsible for contractual and statutory liens even if you lose. But many liens in injury cases are contingent liens, meaning they only have to be repaid if you win.
For example, if your health insurer paid $10,000 of your hospital bill after a truck or motorcycle accident, it may place a contingent lien on your lawsuit so it can be reimbursed if you recover. If you do not win, you are not responsible for that lien.
Why a lawyer matters here
Medical liens grow complicated quickly, and the amount that comes off the top directly shrinks what you take home. An injury lawyer can negotiate the liens down so you keep more of what you recover.