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The purpose of the common fund doctrine is to require the insurer or hospital/medical provider to pay their fair share of attorney's fees and costs incurred in recovering payments made on behalf of the insured/injured party.
To enforce the lien, it must be perfected. The lien-holder is required to send written notice of the lien to the patient as well as file a notice of lien with the county clerk where the services were performed. The notice further must be filed before the money is paid to the injured party.
The definition of a medical lien To answer the question of what is a medical lien is fairly simple: It's a legally binding agreement between a healthcare provider and the patient. It gives the healthcare provider the ability to recoup money owed for treatment by placing a request on the patient's personal injury claim.
???????The ?????Personal Injury Lien Process Step 1: Provide notification of injury to establish a new case. ... Step 2: Inform DHCS when the beneficiary has completed treatment with a Medi-Cal provider or after the settlement has occurred. ... Step 3: Pay the Medi-Cal lien.
Once you notify the DHCS, you can begin to create a Medi-Cal lien. A lien gives the government the right to collect ? a kind of I.O.U. to be paid later. Medi-Cal's right to collect allows the organization to request a refund from personal injury settlements for treatment funds.