Lien on Me
You hang up the phone, you place your head in your hands and go “Not Again! Why Me!?”
You just found out that another one of your MVA patients received the settlement money intended to pay for the services you provided, and when you called the patients house, the answering party had to take a message because your patient is in Vegas or Cancun spending your money.
Been there? Done That? Got the silly hat? We all have. But how do you protect yourself?
Fortunately, the State of Texas has a wonderful little tool called Chapter 55 of the Property Code, in which a hospital can file a lien against the proceeds of any settlement in which the services provided were the result ‘of the negligence of another.’
But what happens when the patient’s attorney litigates the settlement and gives the proceeds to the patient, who in turn, bets it all on Red 7 and loses? Forget the patient! They knew they owed you but they also knew they had a chunk of cash too…..lacking personal integrity, human nature took over. You look to the attorney for payment.
It is incumbent upon the patient’s attorney to check with the appropriate county clerk in order to discover and honor all hospital liens prior to disbursement of funds to the patient.
Some do, but most don’t, and when they don’t, they become liable for the outstanding balances.
To keep this from happening, I recommend that once a lien has been filed and the patient’s legal counsel has been determined, make it a point to send the attorney a copy of the lien with a cover letter which states that the hospital will expect payment directly from the law firm upon successful litigation/representation.
So, what do you do once you’ve have done all that and the attorney still dishonors the lien?
Two steps should then be taken, and the second is only necessary if the first fails.
First, write the attorney (via certified mail this time), again ‘reminding’ the firm of the lien and the hospital’s expectations, and then demand payment within fifteen (15) days of certified receipt.
Include in your demand letter a statement that if payment is not received as demanded, you will file a grievance with the State Bar Disciplinary Counsel. This will most definitely get their attention. They face a reprimand and/or a monetary penalty under these circumstances, either of which they would surely rather avoid.
If that fails, then file the grievance. Don’t hesitate! It’s your money!
If you would like more information on this subject, just let us know and we will be happy to assist you in the process.
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