2006 Code of Virginia § 8.01-66.9 - Lien in favor of Commonwealth, its programs, institutions or departments on claim for personal inju...

8.01-66.9. Lien in favor of Commonwealth, its programs, institutions ordepartments on claim for personal injuries.

Whenever any person sustains personal injuries and receives treatment in anyhospital, public or private, or nursing home, or receives medical attentionor treatment from any physician, or receives nursing services or care fromany registered nurse in this Commonwealth, or receives pharmaceutical goodsor any type of medical or rehabilitative device, apparatus, or treatmentwhich is paid for pursuant to the Virginia Medical Assistance Program, theState/Local Hospitalization Program and other programs of the Department ofMedical Assistance Services, the Maternal and Child Health Program, or theChildren's Specialty Services Program, or provided at or paid for by anyhospital or rehabilitation center operated by the Commonwealth, theDepartment of Rehabilitative Services or any state institution of highereducation, the Commonwealth shall have a lien for the total amount paidpursuant to such program, and the Commonwealth or such Department orinstitution shall have a lien for the total amount due for the services,equipment or devices provided at or paid for by such hospital or centeroperated by the Commonwealth or such Department or institution, or anyportion thereof compromised pursuant to the authority granted under 2.2-514, on the claim of such injured person or of his personalrepresentative against the person, firm, or corporation who is alleged tohave caused such injuries.

The Commonwealth or such Department or institution shall also have a lien onthe claim of the injured person or his personal representative for any fundswhich may be due him from insurance moneys received for such medical servicesunder the injured party's own insurance coverage or through an uninsured orunderinsured motorist insurance coverage endorsement. The lien granted to theCommonwealth for the total amounts paid pursuant to the Virginia MedicalAssistance Program, the State/Local Hospitalization Program and otherprograms of the Department of Medical Assistance Services, the Maternal andChild Health Program, or the Children's Specialty Services Program shall havepriority over the lien for the amounts due for services, equipment or devicesprovided at a hospital or center operated by the Commonwealth. TheCommonwealth's or such Department's or institution's lien shall be inferiorto any lien for payment of reasonable attorney's fees and costs, but shall besuperior to all other liens created by the provisions of this chapter andotherwise. Expenses for reasonable legal fees and costs shall be deductedfrom the total amount recovered. The amount of the lien may be compromisedpursuant to 2.2-514.

The court in which a suit by an injured person or his personal representativehas been filed against the person, firm or corporation alleged to have causedsuch injuries or in which such suit may properly be filed, may, upon motionor petition by the injured person, his personal representative or hisattorney, and after written notice is given to all those holding liensattaching to the recovery, reduce the amount of the liens and apportion therecovery, whether by verdict or negotiated settlement, between the plaintiff,the plaintiff's attorney, and the Commonwealth or such Department orinstitution as the equities of the case may appear, provided that the injuredperson, his personal representative or attorney has made a good faith effortto negotiate a compromise pursuant to 2.2-514. The court shall set forththe basis for any such reduction in a written order.

(Code 1950, 32-139.1; 1972, c. 481; 1974, c. 518; 1979, c. 722; 1981, c.562; 1982, c. 491; 1983, c. 263; 1984, c. 767; 1985, c. 580; 1986, c. 238;1988, c. 544; 1989, c. 624; 1992, c. 104; 2003, c. 525.)

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