Define: Medical Lien

Medical Lien
Medical Lien
Quick Summary of Medical Lien

A medical lien is a legal claim against a patient’s personal injury settlement or judgment, allowing healthcare providers to recover the costs of medical treatment provided to the patient. Healthcare providers may place a lien on any settlement or judgment the patient receives from a third party, such as an insurance company or at-fault party, to ensure that they are compensated for their services. Medical liens are commonly used in cases where a patient is injured due to someone else’s negligence, such as in car accidents or slip-and-fall incidents. The lien typically covers the cost of medical services provided, including hospital stays, surgeries, medications, and rehabilitation. Once the patient’s case is settled or a judgment is awarded, the healthcare provider’s lien must be satisfied before the patient receives any remaining funds. Medical liens provide a way for healthcare providers to ensure payment for their services, especially in cases where the patient may not have health insurance coverage or other means to pay for medical treatment upfront.

Full Definition Of Medical Lien

A medical lien allows a doctor or health care provider to recover their interest for services through a lien against a personal injury settlement. The amount that can be recovered by way of a medical lien will be limited to the cost of the treatment or the service provided. Some hospitals or doctors are unwilling to provide treatment if their own recovery is from a medical lien because there is no guarantee of payment, they may have to wait for years to recover the medical lien payments, and they may have to settle for a reduced payment.

Patients without insurance may also agree to sign a medical lien, which is an agreement to pay their medical bills after their personal injury case is settled. Unfortunately, if the medical costs are greater than the injury settlement they could end up paying for the medical lien out of their own pocket and a lien agreement provides no oversight for how a doctor will treat them; the patient is at the mercy of the medical facility. Talk to an injury lawyer before signing a medical lien for treatment after a personal injury.

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This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 28th March, 2024.

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  • American Psychological Association (APA):Medical Lien. dlssolicitors.com. Retrieved March 28, 2024, from dlssolicitors.com website: https://dlssolicitors.com/define/medical-lien/