What is Medical Lien?
A legal claim by a healthcare provider or insurer against a personal injury settlement or verdict to recover payment for treatment related to the injury.
Understanding Medical Lien
Medical liens must typically be satisfied from case proceeds. They can come from hospitals, doctors, health insurance companies, Medicare, or Medicaid. Lien amounts can sometimes be negotiated. Attorneys must ensure liens are properly paid from settlements.
Examples
- 1Hospital lien on car accident settlement
- 2Health insurer's subrogation lien
- 3Medicare lien for treatment costs
Related Terms
Subrogation
The right of an insurance company to pursue a third party who caused the loss to recover the amount paid on a claim.
Letter of Protection (LOP)
A written agreement where an attorney promises to pay a medical provider from the client's eventual settlement or verdict, allowing treatment without upfront payment.
Medical Malpractice
Professional negligence by a healthcare provider whose treatment falls below the accepted standard of care, resulting in injury or death to the patient.
Standard of Care
The degree of care and skill that a reasonably competent professional in the same field would provide under similar circumstances.
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