The Texas statutes prevent a hospital lien from attaching to the following:
Claims under the Texas Workers’ Compensation Act, the Federal Employees Liability Act; the Federal Longshoremens’ of Harbor Worker’s Compensation Act, and claims against railroad companies who own the hospital in which the injured person is treated, § 55.003(b);
Claims against the injured worker’s own insurance policy proceeds, such as uninsured/underinsured motorists’ coverage and PIP. §55.003; Members Mutual Insurance Co. v. Hermann Hospital, 664 S.W.2d 325, 28 (Tex. 1984) (uninsured/underinsured motorists benefits are not subject to statutory hospital lien);
Hospital liens do not attach to proceeds from wrongful death actions, but they do attach to survival actions. They attach only in cases where recovery for personal injury is sought; they do not attach to judgments or awards for wrongful death;
Hospital liens do not attach to the expenses of treatment of medical problems that are unrelated to the accident at issue but which are attributed to the negligence of another person;
A hospital may not recover pre-judgment interest on the amount of its hospital lien, and, where it intervenes in a suit in order to recover its lien, it may not recover attorneys’ fees, either. Hermann Hospital v. Vardeman, 775 S.W.2d 866, 867-868 (Tex. App. – Houston [1st Dist.] 1989, no writ).
The text of the relevant statutory language is below:
Texas Property Code CHAPTER 55. HOSPITAL AND EMERGENCY MEDICAL SERVICES LIENS
PROPERTY CODE
CHAPTER 55. HOSPITAL AND EMERGENCY MEDICAL SERVICES LIENS
§ 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, § 1, eff. Jan. 1, 1984.
Amended by Acts 2003, 78th Leg., ch. 337, § 1, eff. Sept. 1,
2003.
§ 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, § 1, eff. Jan. 1, 1984.
Amended by Acts 2003, 78th Leg., ch. 337, § 1, eff. Sept. 1,
2003.
§ 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, § 1, eff. Jan. 1, 1984.
Amended by Acts 2003, 78th Leg., ch. 337, § 1, eff. Sept. 1,
2003.
§ 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, § 1, eff. Jan. 1, 1984.
Amended by Acts 2001, 77th Leg., ch. 930, § 1, eff. Sept. 1,
2001; Acts 2003, 78th Leg., ch. 337, § 1, eff. Sept. 1, 2003;
Acts 2003, 78th Leg., ch. 1266, § 1.16, eff. June 20, 2003; Acts
2005, 79th Leg., ch. 728, § 23.001(79), eff. Sept. 1, 2005.
§ 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, § 1, eff. Jan. 1, 1984.
Amended by Acts 1995, 74th Leg., ch. 1031, § 1, eff. Aug. 28,
1995; Acts 2003, 78th Leg., ch. 337, § 1, eff. Sept. 1, 2003.
§ 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, § 1, eff. Jan. 1, 1984.
Amended by Acts 2003, 78th Leg., ch. 337, § 1, eff. Sept. 1,
2003.
§ 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, § 1, eff. Jan. 1, 1984.
Amended by Acts 2003, 78th Leg., ch. 337, § 1, eff. Sept. 1,
2003.
§ 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, § 1, eff. Jan. 1, 1984.
Amended by Acts 2003, 78th Leg., ch. 337, § 1, eff. Sept. 1,
2003.
Williams, McClure & Parmelee is dedicated to high quality legal representation of businesses and insurance companies in a variety of matters. We are experienced Texas civil litigation attorneys based in Fort Worth who know Texas courts and Texas law. For more information, please contact the law firm at 817-335-8800. The firm’s office location is 5601 Bridge Street, Suite 300, Fort Worth, Texas 76112.
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