2013 Indiana Code
TITLE 32. PROPERTY
ARTICLE 33. LIENS ON PERSONAL PROPERTY
CHAPTER 4. HOSPITAL LIENS
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IC 32-33-4
Chapter 4. Hospital Liens
IC 32-33-4-1
Lien for services or expenses; exception; entry on judgment docket
Sec. 1. Subject to sections 3(c), 3(d), and 3.5 of this chapter, a
person, a firm, a partnership, an association, a limited liability
company, or a corporation maintaining a hospital in Indiana or a
hospital owned, maintained, or operated by the state or a political
subdivision of the state is entitled to hold a lien for the reasonable
value of its services or expenses (including any amount designated
as a copayment or deductible) on any judgment for personal injuries
rendered in favor of any person, except:
(1) a person covered by the provisions of IC 22-3, the state
worker's compensation laws;
(2) a person covered by the provisions of 5 U.S.C. 8101 et seq.,
the federal worker's compensation laws;
(3) a person covered by the provisions of 45 U.S.C. 51 et seq.,
the federal liability act;
(4) an eligible person (as defined in IC 34-13-8-1) with respect
to a distribution paid from the supplemental state fair relief fund
for an occurrence (as defined in IC 34-13-8-2); and
(5) a person covered by the provisions of 42 U.S.C. 1395 et
seq., the federal Medicare program;
who is admitted to the hospital and receives treatment, care, and
maintenance on account of personal injuries received as a result of
the negligence of any person or corporation. In order to claim the
lien, the hospital must satisfy the conditions for perfecting the lien as
set forth in section 4 of this chapter and, not later than the date on
which the judgment is rendered, enter, in writing, upon the judgment
docket where the judgment is recorded, the hospital's intention to
hold a lien upon the judgment, together with the amount claimed.
As added by P.L.2-2002, SEC.18. Amended by P.L.160-2012,
SEC.59; P.L.173-2013, SEC.1; P.L.205-2013, SEC.340.
IC 32-33-4-2
Junior and inferior lien
Sec. 2. The lien provided for in section 1 of this chapter is junior
and inferior to all claims for attorney's fees, court costs, and all other
expenses contracted for or incurred in the recovery of claims or
damages for personal injuries as described in this chapter.
As added by P.L.2-2002, SEC.18.
IC 32-33-4-3
Lien for reasonable and necessary charges upon any claims
accruing to patient; scope of lien; allowance to patient
Sec. 3. (a) A person, a firm, a partnership, an association, a
limited liability company, or a corporation maintaining a hospital in
Indiana or a hospital owned, maintained, or operated by the state or
a political subdivision has a lien for all reasonable and necessary
charges for hospital care, treatment, and maintenance of a patient
(including emergency ambulance services provided by the hospital
and any amount designated as a copayment or deductible) upon any
cause of action, suit, or claim accruing to the patient, or in the case
of the patient's death, the patient's legal representative, because of the
illness or injuries that:
(1) gave rise to the cause of action, suit, or claim; and
(2) necessitated the hospital care, treatment, and maintenance.
(b) The lien provided for in subsection (a):
(1) except as provided in subsection (c), applies to any amount
obtained or recovered by the patient by settlement or
compromise rendered or entered into by the patient or by the
patient's legal representative;
(2) is subject and subordinate to any attorney's lien upon the
claim or cause of action;
(3) is not applicable to a person covered by:
(A) the provisions of IC 22-3, the state worker's
compensation laws;
(B) the provisions of 5 U.S.C. 8101 et seq., the federal
worker's compensation laws;
(C) 45 U.S.C. 51 et seq., the federal liability act;
(D) IC 34-13-8 concerning a distribution paid from the
supplemental state fair relief fund to an eligible person (as
defined in IC 34-13-8-1) for an occurrence (as defined in
IC 34-13-8-2); or
(E) the provisions of 42 U.S.C. 1395 et seq., the federal
Medicare program;
(4) is not assignable; and
(5) must:
(A) first be reduced by the amount of any benefits to which
the patient is entitled under the terms of any contract, health
plan, or medical insurance; and
(B) reflect credits for all payments, contractual adjustments,
write-offs, and any other benefit in favor of the patient;
after the hospital has made all reasonable efforts to pursue the
insurance claims in cooperation with the patient.
(c) If a settlement or compromise that is subject to subsection
(b)(1) is for an amount that would permit the patient to receive less
than twenty percent (20%) of the full amount of the settlement or
compromise if all the liens created under this chapter were paid in
full, the liens must be reduced on a pro rata basis to the extent that
will permit the patient to receive twenty percent (20%) of the full
amount.
(d) A lien provided for in this chapter does not apply to a
judgment, cause of action, suit, or claim accruing to the patient
under:
(1) a policy of disability insurance; or
(2) automobile or homeowner's insurance that provides for
medical payments.
As added by P.L.2-2002, SEC.18. Amended by P.L.160-2012,
SEC.60; P.L.173-2013, SEC.2; P.L.205-2013, SEC.341.
IC 32-33-4-3.5
Restrictions on hospital lienholder
Sec. 3.5. (a) This section applies to any person who holds a lien
under this chapter.
(b) As used in this section, "hospital lienholder" means:
(1) a person, firm, partnership, association, limited liability
company, or corporation maintaining a hospital in Indiana; or
(2) a hospital owned, maintained, or operated by the state or a
political subdivision;
that has a lien under this chapter.
(c) If a hospital lienholder settles or compromises a claim in an
amount less than the amount of its lien, the hospital lienholder is
barred from seeking any additional reimbursement from the patient
or the patient's representative.
(d) A hospital lienholder is barred from seeking from the patient
or the patient's representative payment for any amount of the
hospital's charges that exceed the patient's financial obligation to the
hospital under the terms of any private benefits to which the patient
is entitled, including the terms of any health plan contract and
medical insurance. The lien must reflect credits for all payments,
contractual adjustments, write-offs, and any other benefit in favor of
the patient.
(e) A hospital lienholder is barred from enforcing the collection
of charges covered by this chapter until the cause of action, suit, or
claim accruing to the patient has been resolved by compromise,
settlement, or judgment.
As added by P.L.173-2013, SEC.3. Amended by P.L.205-2013,
SEC.342.
IC 32-33-4-4
Perfecting lien; procedure; contest
Sec. 4. (a) To perfect the lien provided for in section 3 of this
chapter, the hospital must file for record in the office of the recorder
of the county in which the hospital is located, within ninety (90) days
after the person is discharged or not later than the date of the final
settlement, compromise, or resolution of the cause of action, suit, or
claim accruing to the patient, whichever occurs first, a verified
statement in writing stating:
(1) the name and address of the patient as it appears on the
records of the hospital;
(2) the name and address of the operator of the hospital;
(3) the dates of the patient's admission to and discharge from
the hospital;
(4) the amount claimed to be due for the hospital care; and
(5) to the best of the hospital's knowledge, the names and
addresses of anyone claimed by the patient or the patient's legal
representative to be liable for damages arising from the patient's
illness or injury.
(b) Within ten (10) days after filing the statement, the hospital
shall send a copy by registered mail, postage prepaid:
(1) to each person claimed to be liable because of the illness or
injury at the address given in the statement;
(2) to the attorney representing the patient if the name of the
attorney is known or with reasonable diligence could be
discovered by the hospital; and
(3) to the department of insurance as notice to insurance
companies doing business in Indiana.
(c) The filing of a claim under subsections (a) and (b) is notice to
any person, firm, limited liability company, or corporation that may
be liable because of the illness or injury if the person, firm, limited
liability company, or corporation:
(1) receives notice under subsection (b);
(2) resides or has offices in a county where the lien was
perfected or in a county where the lien was filed in the
recorder's office as notice under this subsection; or
(3) is an insurance company authorized to do business in
Indiana under IC 27-1-3-20.
(d) A lien:
(1) is effective under this chapter on the date a hospital
complies with subsections (a) and (b); and
(2) may not be made retroactive to any prior date.
(e) A person desiring to contest a lien or the reasonableness of the
charges claimed by the hospital may do so by filing a motion to
quash or reduce the claim in the circuit court in which the lien was
perfected, making all other parties of interest respondents.
As added by P.L.2-2002, SEC.18. Amended by P.L.173-2013, SEC.4.
IC 32-33-4-5
Date and hour of filing; endorsement; filing fee; rules
Sec. 5. (a) The recorder of the county shall endorse on the
statement filed under section 4(a) of this chapter the date and hour of
filing.
(b) The recorder shall charge a fee for filing the claim in
accordance with the fee schedule established in IC 36-2-7-10.
(c) The department of insurance shall adopt rules under IC 4-22-2
to:
(1) provide for the filing of lien notices mailed to the
department by hospitals under section 4(b)(3) of this chapter;
(2) provide insurance companies with reasonable and timely
access to the information contained in the lien notices filed with
the department under section 4(b)(3) of this chapter; and
(3) provide a system for filing and for cross-referencing lien
releases mailed under section 7 of this chapter with lien notices
filed under section 4(b)(3) of this chapter.
As added by P.L.2-2002, SEC.18.
IC 32-33-4-6
Validity of lien; release or settlement of claim; satisfaction of
judgment; jurisdiction
Sec. 6. (a) A lien perfected under section 4 of this chapter is valid
unless the lienholder executes a release of the lien under section 7 of
this chapter.
(b) The release or settlement of a claim with a patient by a person
claimed to be liable for the damages incurred by the patient:
(1) after a lien has been perfected under section 4 of this
chapter; and
(2) without obtaining a release of the lien;
entitles the lienholder to damages for the reasonable cost of the
hospital care, treatment, and maintenance.
(c) Satisfaction of a judgment rendered in favor of the lienholder
under subsection (b) is satisfaction of the lien.
(d) An action by the lienholder must be brought in the court
having jurisdiction of the amount of the lienholder's claim and may
be brought and maintained in the county of residence of the
lienholder.
As added by P.L.2-2002, SEC.18.
IC 32-33-4-7
Release of lien; filing executed certificate; entry in lien book;
lienholders liability
Sec. 7. (a) To release a lien perfected under section 4 of this
chapter, the operator of the hospital that claims the lien must file
with each recorder in whose office the notice of the hospital lien was
filed an executed certificate:
(1) stating that the claim filed by the hospital for treatment,
care, and maintenance has been paid or discharged; and
(2) authorizing the recorder to release the lien.
The hospital shall bear the expense of obtaining a release.
(b) Upon receipt of the certificate, the recorder shall enter in the
margin of the record of the lien and the entry book a memorandum
of the filing and the date the certificate was filed. This entry
constitutes a release of lien for which the recorder shall receive the
fee prescribed in IC 36-2-7-10.
(c) If the amount of a lien has been satisfied or paid and
subsequently a demand for a release of the lien is made, the
lienholder is liable to the person, firm, limited liability company, or
corporation against whose interest the lien has been filed for
twenty-five dollars ($25) for each day that the lien remains in effect
after the fifteenth day after the demand for a release of the lien was
made.
(d) The operator of the releasing hospital shall mail a copy of the
release of lien certificate required under subsection (a) to the
department of insurance within ten (10) days after the certificate was
filed with the recorder.
As added by P.L.2-2002, SEC.18. Amended by P.L.173-2013, SEC.5.
IC 32-33-4-8
Limitation on hospital's right
Sec. 8. This chapter does not give any hospital a right:
(1) of action to determine liability; or
(2) to approve a compromise or settlement;
for injuries sustained by any person covered by this chapter.
As added by P.L.2-2002, SEC.18.
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