By Harris S.B. No. 202
75R2540 DLF-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to health care services liens on certain recoveries in
1-3 civil actions.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 55, Property Code, is amended to read as
1-6 follows:
1-7 CHAPTER 55. HEALTH CARE SERVICES [HOSPITAL] LIEN
1-8 Sec. 55.001. DEFINITIONS. In this chapter:
1-9 (1) "Health care provider" means any individual or
1-10 facility licensed, certified, or otherwise authorized to administer
1-11 health care, for profit or otherwise, in the ordinary course of
1-12 business or professional practice. The term includes a physician.
1-13 ["Hospital" means a person or institution maintaining a facility
1-14 that provides hospital services in this state.]
1-15 (2) "Person" does not include a county, common, or
1-16 independent school district.
1-17 Sec. 55.002. LIEN. (a) A health care provider [hospital]
1-18 has a lien on a cause of action or claim of an individual who
1-19 receives health care [hospital] services for injuries caused by an
1-20 accident that is attributed to the negligence of another person.
1-21 [For the lien to attach, the individual must be admitted to a
1-22 hospital not later than 72 hours after the accident.]
1-23 (b) The lien extends to both the health care provider who
1-24 initially provides treatment to the individual and another health
2-1 care provider [admitting hospital and a hospital] to which the
2-2 individual is transferred or referred for treatment of the same
2-3 injury.
2-4 Sec. 55.003. PROPERTY TO WHICH LIEN ATTACHES. (a) The lien
2-5 attaches to:
2-6 (1) a cause of action for damages arising from an
2-7 injury for which the injured individual receives the services of
2-8 the health care provider [is admitted to the hospital];
2-9 (2) a judgment of a court in this state or the
2-10 decision of a public agency in a proceeding brought by the injured
2-11 individual or by another person entitled to bring the suit in case
2-12 of the death of the individual to recover damages arising from an
2-13 injury for which the injured individual receives the services of
2-14 the health care provider [is admitted to the hospital]; and
2-15 (3) the proceeds of a settlement of a cause of action
2-16 or a claim by the injured individual or another person entitled to
2-17 make the claim, arising from an injury for which the injured
2-18 individual receives the services of the health care provider [is
2-19 admitted to the hospital].
2-20 (b) The lien does not attach to:
2-21 (1) a claim under:
2-22 (A) Title 5, Labor Code;
2-23 (B) [the workers' compensation law of this
2-24 state,] the Federal Employers' [Employees] Liability Act (45 U.S.C.
2-25 Section 51 et seq.); [,] or
2-26 (C) the Longshore and [Federal Longshoremen's
2-27 or] Harbor Workers' Compensation Act (33 U.S.C. Section 901 et
3-1 seq.);
3-2 (2) a claim against the owner or operator of a
3-3 railroad company that maintains or whose employees maintain a
3-4 hospital in which the injured individual is receiving hospital
3-5 services; or
3-6 (3) the proceeds of an insurance policy in favor of
3-7 the injured individual or the injured individual's beneficiary or
3-8 legal representative, except public liability insurance carried by
3-9 the insured that protects the insured against loss caused by an
3-10 accident or collision.
3-11 Sec. 55.004. AMOUNT OF LIEN. (a) The lien is for the
3-12 amount of the health care provider's [hospital's] charges for
3-13 services provided to the injured individual during the first 100
3-14 days that health care services are provided to [of] the injured
3-15 individual [individual's hospitalization], except that the lien
3-16 does not cover:
3-17 (1) hospital charges for operating costs that exceed
3-18 the cost limits established under Section 413.30 [405.460], 42 Code
3-19 of Federal Regulations; or
3-20 (2) charges for other services that exceed a
3-21 reasonable and regular rate for the services.
3-22 (b) The lien is not affected by a health care provider's
3-23 [hospital's] use of a method of classifying patients according to
3-24 their ability to pay that is solely intended to obtain a lien for
3-25 services provided to an indigent injured individual.
3-26 Sec. 55.005. SECURING LIEN. (a) To secure the lien, a
3-27 health care provider [hospital] must file written notice of the
4-1 lien with the county clerk of the county in which the [hospital]
4-2 services were provided. The notice must be filed before money is
4-3 paid to an entitled person because of the injury.
4-4 (b) The notice must contain:
4-5 (1) the injured individual's name and address;
4-6 (2) the date of the accident;
4-7 (3) the name and address of the health care provider
4-8 [location of the hospital]; [and]
4-9 (4) the name of the person alleged to be liable for
4-10 damages arising from the injury, if known; and
4-11 (5) the affidavit described by Subsection (c), if
4-12 required.
4-13 (c) If the health care provider did not provide services to
4-14 the injured individual before the end of the 72nd hour after the
4-15 accident described in the notice, the health care provider must
4-16 attach to the notice an affidavit stating that the health care
4-17 provider believes, in good faith, that the services provided to the
4-18 injured individual were for injuries caused by the accident. The
4-19 affidavit must be signed by the health care provider if the health
4-20 care provider is an individual or the person in charge of the
4-21 finances of the health care provider if the health care provider is
4-22 not an individual.
4-23 (d) The county clerk shall record the name of the injured
4-24 individual, the date of the accident, and the name and address of
4-25 the health care provider [hospital] and shall index the record in
4-26 the name of the injured individual.
4-27 Sec. 55.006. DISCHARGE OF LIEN. (a) To discharge the lien,
5-1 the health care provider, if the health care provider is an
5-2 individual, or [hospital authorities or] the person in charge of
5-3 the finances of the health care provider, if the health care
5-4 provider is not an individual, [hospital] must execute and file
5-5 with the county clerk of the county in which the lien notice was
5-6 filed a certificate stating that the debt covered by the lien has
5-7 been paid or released and authorizing the clerk to discharge the
5-8 lien.
5-9 (b) The county clerk shall record a memorandum of the
5-10 certificate and the date it was filed.
5-11 (c) The filing of the certificate and recording of the
5-12 memorandum discharge the lien.
5-13 Sec. 55.007. VALIDITY OF RELEASE. (a) A release of a cause
5-14 of action or judgment to which the lien may attach is not valid
5-15 unless:
5-16 (1) the health care provider's [hospital's] charges
5-17 were paid in full before the execution and delivery of the release;
5-18 (2) the health care provider's [hospital's] charges
5-19 were paid before the execution and delivery of the release to the
5-20 extent of any full and true consideration paid to the injured
5-21 individual by or on behalf of the other parties to the release; or
5-22 (3) the health care provider [hospital] is a party to
5-23 the release.
5-24 (b) A judgment to which the lien has attached remains in
5-25 effect until the health care provider's [hospital's] charges are
5-26 paid in full or to the extent set out in the judgment.
5-27 Sec. 55.008. [HOSPITAL] RECORDS. (a) On request by an
6-1 attorney for a party by, for, or against whom a claim is asserted
6-2 for damages arising from an injury, a health care provider
6-3 [hospital] shall as promptly as possible make available for the
6-4 attorney's examination its records concerning the services provided
6-5 to the injured individual.
6-6 (b) The health care provider [hospital] may issue reasonable
6-7 rules for granting access to its records under this section, but it
6-8 may not deny access because a record is incomplete.
6-9 (c) The records are admissible, subject to applicable rules
6-10 of evidence, in a civil suit arising from the injury.
6-11 SECTION 2. This Act takes effect September 1, 1997.
6-12 SECTION 3. The change in law made by this Act applies only
6-13 to health care services rendered on or after the effective date of
6-14 this Act. Health care services rendered before the effective date
6-15 of this Act are governed by the law as it existed immediately
6-16 before the effective date of this Act, and that law is continued in
6-17 effect for this purpose.
6-18 SECTION 4. The importance of this legislation and the
6-19 crowded condition of the calendars in both houses create an
6-20 emergency and an imperative public necessity that the
6-21 constitutional rule requiring bills to be read on three several
6-22 days in each house be suspended, and this rule is hereby suspended.