When hospitals treat patients injured in motor vehicle accidents (MVAs), payment recovery can be complicated, especially when liability and coverage are unclear.
Hospital liens are a key tool that helps hospitals recover reimbursement from the settlement or judgment resulting from the accident. Properly filing and managing these liens ensures compliance with state law and protects hospital revenue.
A hospital lien gives a healthcare facility the legal right to seek payment directly from any settlement, verdict, or insurance payout associated with a motor vehicle accident. It allows hospitals to recover the reasonable cost of emergency and medically necessary care provided to accident victims when another party is legally responsible.
These liens exist to ensure hospitals are not left uncompensated for emergency treatment, particularly when patients lack insurance or when auto liability coverage is pending. They also preserve financial stability for trauma and emergency departments that must treat patients regardless of their ability to pay.
Hospitals should file a lien whenever a patient is treated for MVA-related injuries and there is a potential liability claim, such as when:
Best practice: File the lien as soon as possible after discharge, ideally within 10–15 business days, to meet statutory deadlines that vary by state.
Hospital lien statutes are established at the state level, and compliance depends on adhering to strict procedural rules. Key elements include:
Action tip: Always confirm each state’s current lien law and maintain a database of deadlines, notice forms, and contact points for all counties in which your hospital provides emergency care.
Each state’s lien statute is unique, requiring precise compliance. Even minor errors – like missing a notice deadline can void a lien.
Best practice: Partner with a third-party recovery specialist experienced in MVA and hospital lien law. The firm should have licensed attorneys and paralegals familiar with state-specific statutes and filing offices.
Most EMR or billing systems are not designed to track lien deadlines or manage legal correspondence.
Best practice: Implement automated lien management software that applies rules for each state, generates notice letters, tracks expiration dates, and maintains lien status through settlement. EnableComp’s RPA-driven lien management system, eRCM E360®, for example, uses a rules-based engine to ensure every MVA lien is filed and perfected within state guidelines.
High turnover in patient financial services departments often leads to inconsistent line-handling and missed recoveries.
Best practice: Use an outsourced MVA recovery team that manages lien workflows end-to-end identifying eligible cases, filing liens, monitoring settlements, and ensuring legal compliance. This allows hospital staff to focus on core billing functions.
Motor vehicle accident cases typically represent a small share of a hospital patient mix but can yield significant financial recovery if liens are properly managed. MVA/TPL payments often reimburse a higher percentage of billed charges than commercial or government payers.
Best practice: Hospitals should integrate MVA and lien recovery into their overall complex claims strategy, leveraging automation, analytics, and legal expertise to capture every valid opportunity for reimbursement.
EnableComp serves as a trusted extension of your business office, specializing in motor vehicle accidents and third-party liability recovery. Our team manages every aspect of MVA claims from identification to filing and resolution using technology and legal oversight that ensure compliance with current lien laws in all 50 states.
With proprietary analytics, RPA automation, and an in-house legal network, EnableComp consistently helps hospitals:
If your team is ready to protect your rights and maximize MVA lien recovery, EnableComp can simplify the process and strengthen your bottom line.