Hospital liens play a crucial role in ensuring hospitals receive compensation for treating accident victims. Hospital lien laws for motor vehicle accidents are in place to help providers successfully pursue liens and secure their rights to payment.
What is a Hospital Lien?
A hospital lien is simply a legal interest or entitlement to a portion of any settlement in a personal injury case. Hospitals treating accident victims may be allowed to recover a portion of the settlement to cover the expenses incurred during treatment.
From a hospital’s perspective, they provide treatment knowing that an insurance company may compensate to cover medical expenses associated with the treatment. This incentivizes hospitals to continue to adequately treat patients for injuries, and helps ensure that our healthcare systems remain financially sound.
When to File a Hospital Lien
The most common scenario for a hospital lien is when a patient is injured in a car accident and another party was at fault. However, a lien can and should be filed any other time when the patient is injured and is bringing a liability claim or lawsuit against an individual or entity that the patient believes is liable — this includes when a patient makes a claim for injuries on another’s property due to no fault of the patient (animal bites, etc.).
An essential example underscores the importance of filing hospital liens. During a consultation, it became evident that a prospective client handling motor vehicle accident (MVA) claims wasn’t filing hospital liens at all. Such oversights result in a considerable loss of revenue that could be rightfully collected, protected by robust lien statutes under state laws regarding any third-party liability (TPL) settlements.
Take Control of Lost Revenue With a Partner Who Knows How to Find It.
Schedule a ConsultationHospital Lien Laws Vary by State
Each state’s laws differ to some extent and the procedures and deadlines for filing a hospital lien must be followed exactly. Each state’s laws can differ on who is liable if the lien is ignored and how long a hospital must enforce the lien should that happen. It is also important to note that some states do not have any hospital lien laws for motor vehicle accidents whatsoever.
Challenges Hospitals Face in Pursuing Liens
Hospitals encounter several obstacles in navigating the legalities of filing and enforcing liens, including:
Solution: Utilize a third-party partner to take advantage of a dedicated MVA legal team that has the skills and resources to effectively appeal, negotiate, and recover payments on behalf of the hospital. The right partner will have a legal team that meets all legal requirements in that state to ensure you are compliant. That same legal team will monitor state laws and cases that could impact the lien process in your state.
Solution: A successful MVA business partner will have their own technology that automates and expedites payment to ensure deadlines are met and are in legal compliance with state laws. EnableComp’s proprietary technology tools use RPA (Robotic Process Automation) driven rules engine and workflows to adhere to specific state lien laws.
Solution: Partner with someone who has an experienced staff that manages the lien process and a team of attorneys that negotiate and defend hospital liens to ensure that the TPL settlement is the maximum amount to which hospitals are legally entitled.
How to File a Hospital Lien for Motor Vehicle Accidents
Engaging a third-party technology partner, such as EnableComp, with a dedicated legal team adept in managing motor vehicle accident claims, resolves these hurdles. EnableComp’s advanced, proprietary technology and legal expertise ensure compliance with state laws and streamline the filing process.
Maximizing Revenue Through MVA Claims
While MVA claims make up a small percentage of a hospital’s revenue, due to the tight margins that all hospitals are under, it is critical to use every possible resource at your disposal to maximize recoveries. Additionally, TPL settlements can provide the potential to recover a higher percentage of total charges than billing commercial or government payers.
If you are not filing liens and securing your rights to that TPL settlement, real revenue is left on the table. Collaborating with an MVA business partner eliminates obstacles and streamlines the process to maximize revenue. EnableComp serves as a comprehensive partner, addressing all aspects of Motor Vehicle Accident claims from Commercial, PIP, and MVA/TPL payers.
For hospitals, understanding and leveraging hospital lien laws for motor vehicle accidents is crucial in getting paid for the work you do. EnableComp’s expertise in managing MVA claims offers hospitals the opportunity to outsource the work and enhance revenue while remaining compliant with state law.
