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The lien does not attach to any real or personal property of the injured party. The lien does not attach to any workers' compensation benefits. The hospital has no independent right to assert a cause of action against any potential responsible party.
What is a Medical Lien or Hospital Lien? Medical and hospital liens are legally binding contracts between patients and their healthcare provider, such as the hospital or doctor. The lien agreement stipulates that the provider must offer medical treatment to the patient.
The lien allows the medical provider to be paid from the proceeds of settlement before you receive any money. For hospitals, Indiana has set up a special statute entitled the Indiana Hospital Lien Statute that dictates when and how hospitals can place a medical lien on proceeds and how the liens are to be paid.
For example, if someone is injured in a car accident and their medical insurance pays for the cost of all of their treatment after deductibles, the health insurance company can put a lien against the settlement.