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)
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 accidents or injuries within the purview
of:
(A) IC 22-3;
(B) 5 U.S.C. 8101 et seq.; or
(C) 45 U.S.C. 51 et seq.;
(4) is not assignable; and
(5) must first be reduced by the amount of any medical
insurance proceeds paid to the hospital on behalf 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.
As added by P.L.2-2002, SEC.18.
Last modified: May 24, 2006