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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.
How a California Medical Lien Works. A medical lien grants a healthcare provider such as a hospital or doctor the right to receive money from your personal injury claim to recover any money they are owed for your treatment related to the accident. There are two broad types of healthcare liens: explicit and hidden.
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.
What Does Lien Mean? A lien, in the context of insurance, is a legal claim that an auto insurance company, health care provider, or health insurance company has over settlement claims after paying the injured party's bills. In general, a lien is the security interest that a creditor has against a certain property.
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.