CHAPTER 55. HOSPITAL AND EMERGENCY MEDICAL SERVICES LIENS - Texas Statutes

PROPERTY CODE

TITLE 5. EXEMPT PROPERTY AND LIENS

SUBTITLE B. LIENS

CHAPTER 55. HOSPITAL AND EMERGENCY MEDICAL SERVICES LIENS

Sec. 55.001. DEFINITIONS. In this chapter:

(1) "Emergency medical services" has the meaning assigned by

Section 773.003, Health and Safety Code.

(2) "Emergency medical services provider" has the meaning

assigned by Section 773.003, Health and Safety Code.

(3) "Hospital" means a person or institution maintaining a

facility that provides hospital services in this state.

(4) "Person" does not include a county, common, or independent

school district.

Acts 1983, 68th Leg., p. 3562, ch. 576, Sec. 1, eff. Jan. 1,

1984. Amended by Acts 2003, 78th Leg., ch. 337, Sec. 1, eff.

Sept. 1, 2003.

Sec. 55.002. LIEN. (a) A hospital has a lien on a cause of

action or claim of an individual who receives hospital services

for injuries caused by an accident that is attributed to the

negligence of another person. For the lien to attach, the

individual must be admitted to a hospital not later than 72 hours

after the accident.

(b) The lien extends to both the admitting hospital and a

hospital to which the individual is transferred for treatment of

the same injury.

(c) An emergency medical services provider has a lien on a cause

of action or claim of an individual who receives emergency

medical services in a county with a population of 575,000 or less

for injuries caused by an accident that is attributed to the

negligence of another person. For the lien to attach, the

individual must receive the emergency medical services not later

than 72 hours after the accident.

Acts 1983, 68th Leg., p. 3562, ch. 576, Sec. 1, eff. Jan. 1,

1984. Amended by Acts 2003, 78th Leg., ch. 337, Sec. 1, eff.

Sept. 1, 2003.

Sec. 55.003. PROPERTY TO WHICH LIEN ATTACHES. (a) A lien under

this chapter attaches to:

(1) a cause of action for damages arising from an injury for

which the injured individual is admitted to the hospital or

receives emergency medical services;

(2) a judgment of a court in this state or the decision of a

public agency in a proceeding brought by the injured individual

or by another person entitled to bring the suit in case of the

death of the individual to recover damages arising from an injury

for which the injured individual is admitted to the hospital or

receives emergency medical services; and

(3) the proceeds of a settlement of a cause of action or a claim

by the injured individual or another person entitled to make the

claim, arising from an injury for which the injured individual is

admitted to the hospital or receives emergency medical services.

(b) The lien does not attach to:

(1) a claim under the workers' compensation law of this state,

the Federal Employees Liability Act, or the Federal Longshore and

Harbor Workers' Compensation Act; or

(2) the proceeds of an insurance policy in favor of the injured

individual or the injured individual's beneficiary or legal

representative, except public liability insurance carried by the

insured that protects the insured against loss caused by an

accident or collision.

(c) A hospital lien described by Section 55.002(a) does not

attach to a claim against the owner or operator of a railroad

company that maintains or whose employees maintain a hospital in

which the injured individual is receiving hospital services.

Acts 1983, 68th Leg., p. 3562, ch. 576, Sec. 1, eff. Jan. 1,

1984. Amended by Acts 2003, 78th Leg., ch. 337, Sec. 1, eff.

Sept. 1, 2003.

Sec. 55.004. AMOUNT OF LIEN. (a) In this section, "emergency

hospital care" means health care services provided in a hospital

to evaluate, stabilize, and treat a serious medical problem of

recent onset or severity, including severe pain that would lead a

prudent layperson possessing an average knowledge of medicine and

health to believe that the condition, illness, or injury is of

such a nature that failure to obtain immediate medical care would

in all reasonable probability:

(1) seriously jeopardize the patient's health;

(2) seriously impair one or more bodily functions;

(3) seriously harm an organ or other part of the body;

(4) cause serious disfigurement; or

(5) in the case of a pregnant woman, seriously jeopardize the

health of the fetus.

(b) A hospital lien described by Section 55.002(a) is for the

amount of the hospital's charges for services provided to the

injured individual during the first 100 days of the injured

individual's hospitalization.

(c) A hospital lien described by Section 55.002(a) may also

include the amount of a physician's reasonable and necessary

charges for emergency hospital care services provided to the

injured individual during the first seven days of the injured

individual's hospitalization. At the request of the physician,

the hospital may act on the physician's behalf in securing and

discharging the lien.

(d) A hospital lien described by Section 55.002(a) does not

cover:

(1) charges for other services that exceed a reasonable and

regular rate for the services;

(2) charges by the physician related to any services provided

under Subsection (c) for which the physician has accepted

insurance benefits or payment under a private medical indemnity

plan or program, regardless of whether the benefits or payment

equals the full amount of the physician's charges for those

services;

(3) charges by the physician for services provided under

Subsection (c) if the injured individual has coverage under a

private medical indemnity plan or program from which the

physician is entitled to recover payment for the physician's

services under an assignment of benefits or similar rights; or

(4) charges by the physician related to any services provided

under Subsection (c) if the physician is a member of the

legislature.

(e) A hospital lien described by Section 55.002(a) is not

affected by a hospital's use of a method of classifying patients

according to their ability to pay that is solely intended to

obtain a lien for services provided to an indigent injured

individual.

(f) An emergency medical services lien described by Section

55.002(c) is for the amount charged by the emergency medical

services provider, not to exceed $1,000, for emergency medical

services provided to the injured individual during the 72 hours

following the accident that caused the individual's injuries.

(g) An emergency medical services lien described by Section

55.002(c) does not cover:

(1) charges for services that exceed a reasonable and regular

rate for the services;

(2) charges by the emergency medical services provider related

to any services for which the emergency medical services provider

has accepted insurance benefits or payment under a private

medical indemnity plan or program, regardless of whether the

benefits or payments equal the full amount of the charges for

those services; or

(3) charges by the emergency medical services provider for

services provided if the injured individual has coverage under a

private medical indemnity plan or program from which the provider

is entitled to recover payment for the provider's services under

an assignment of benefits or similar right.

(h) If the physician is employed in that capacity by an

institution of higher education, as defined by Section 61.003,

Education Code, and the lien does not include the amount of the

physician's reasonable and necessary charges described by

Subsection (c), the physician has a lien on the cause of action

in the same manner as a hospital under this chapter. The lien is

subject to provisions of this chapter applicable to a hospital

lien, and the physician or the physician's employing institution

may secure and enforce the lien in the manner provided by this

chapter.

Acts 1983, 68th Leg., p. 3563, ch. 576, Sec. 1, eff. Jan. 1,

1984. Amended by Acts 2001, 77th Leg., ch. 930, Sec. 1, eff.

Sept. 1, 2001; Acts 2003, 78th Leg., ch. 337, Sec. 1, eff. Sept.

1, 2003; Acts 2003, 78th Leg., ch. 1266, Sec. 1.16, eff. June 20,

2003.

Amended by:

Acts 2005, 79th Leg., Ch.

728, Sec. 23.001(79), eff. September 1, 2005.

Sec. 55.005. SECURING LIEN. (a) To secure the lien, a hospital

or emergency medical services provider must file written notice

of the lien with the county clerk of the county in which the

services were provided. The notice must be filed before money is

paid to an entitled person because of the injury.

(b) The notice must contain:

(1) the injured individual's name and address;

(2) the date of the accident;

(3) the name and location of the hospital or emergency medical

services provider claiming the lien; and

(4) the name of the person alleged to be liable for damages

arising from the injury, if known.

(c) The county clerk shall record the name of the injured

individual, the date of the accident, and the name and address of

the hospital or emergency medical services provider and shall

index the record in the name of the injured individual.

Acts 1983, 68th Leg., p. 3563, ch. 576, Sec. 1, eff. Jan. 1,

1984. Amended by Acts 1995, 74th Leg., ch. 1031, Sec. 1, eff.

Aug. 28, 1995; Acts 2003, 78th Leg., ch. 337, Sec. 1, eff. Sept.

1, 2003.

Sec. 55.006. DISCHARGE OF LIEN. (a) To discharge a lien under

this chapter, the authorities of the hospital or emergency

medical services provider claiming the lien or the person in

charge of the finances of the hospital or emergency medical

services provider must execute and file with the county clerk of

the county in which the lien notice was filed a certificate

stating that the debt covered by the lien has been paid or

released and authorizing the clerk to discharge the lien.

(b) The county clerk shall record a memorandum of the

certificate and the date it was filed.

(c) The filing of the certificate and recording of the

memorandum discharge the lien.

Acts 1983, 68th Leg., p. 3564, ch. 576, Sec. 1, eff. Jan. 1,

1984. Amended by Acts 2003, 78th Leg., ch. 337, Sec. 1, eff.

Sept. 1, 2003.

Sec. 55.007. VALIDITY OF RELEASE. (a) A release of a cause of

action or judgment to which a lien under this chapter may attach

is not valid unless:

(1) the charges of the hospital or emergency medical services

provider claiming the lien were paid in full before the execution

and delivery of the release;

(2) the charges of the hospital or emergency medical services

provider claiming the lien were paid before the execution and

delivery of the release to the extent of any full and true

consideration paid to the injured individual by or on behalf of

the other parties to the release; or

(3) the hospital or emergency medical services provider claiming

the lien is a party to the release.

(b) A judgment to which a lien under this chapter has attached

remains in effect until the charges of the hospital or emergency

medical services provider claiming the lien are paid in full or

to the extent set out in the judgment.

Acts 1983, 68th Leg., p. 3564, ch. 576, Sec. 1, eff. Jan. 1,

1984. Amended by Acts 2003, 78th Leg., ch. 337, Sec. 1, eff.

Sept. 1, 2003.

Sec. 55.008. RECORDS. (a) On request by an attorney for a

party by, for, or against whom a claim is asserted for damages

arising from an injury, a hospital or emergency medical services

provider shall as promptly as possible make available for the

attorney's examination its records concerning the services

provided to the injured individual.

(b) The hospital or emergency medical services provider may

issue reasonable rules for granting access to its records under

this section, but it may not deny access because a record is

incomplete.

(c) The records are admissible, subject to applicable rules of

evidence, in a civil suit arising from the injury.

Acts 1983, 68th Leg., p. 3564, ch. 576, Sec. 1, eff. Jan. 1,

1984. Amended by Acts 2003, 78th Leg., ch. 337, Sec. 1, eff.

Sept. 1, 2003.