By: Ogden S.B. No. 913
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to a lien on a cause of action or claim of an individual
1-3 who receives certain medical services.
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. HOSPITAL AND EMERGENCY MEDICAL SERVICES LIENS [LIEN]
1-8 Sec. 55.001. DEFINITIONS. In this chapter:
1-9 (1) "Emergency medical services" has the meaning
1-10 assigned by Section 773.003, Health and Safety Code.
1-11 (2) "Emergency medical services provider" has the
1-12 meaning assigned by Section 773.003, Health and Safety Code.
1-13 (3) "Hospital" means a person or institution
1-14 maintaining a facility that provides hospital services in this
1-15 state.
1-16 (4) [(2)] "Person" does not include a county, common,
1-17 or independent school district.
1-18 Sec. 55.002. LIEN. (a) A hospital has a lien on a cause of
1-19 action or claim of an individual who receives hospital services for
1-20 injuries caused by an accident that is attributed to the negligence
1-21 of another person. For the lien to attach, the individual must be
1-22 admitted to a hospital not later than 72 hours after the accident.
1-23 [(b)] The lien extends to both the admitting hospital and a
1-24 hospital to which the individual is transferred for treatment of
1-25 the same injury.
2-1 (b) An emergency medical services provider has a lien on a
2-2 cause of action or claim of an individual who receives emergency
2-3 medical services in a county with a population of 275,000 or less
2-4 for injuries caused by an accident that is attributed to the
2-5 negligence of another person. For the lien to attach, the
2-6 individual must receive the emergency medical services not later
2-7 than 72 hours after the accident.
2-8 Sec. 55.003. PROPERTY TO WHICH LIEN ATTACHES. (a) A [The]
2-9 lien under this chapter attaches to:
2-10 (1) a cause of action for damages arising from an
2-11 injury for which the injured individual is admitted to the hospital
2-12 or receives emergency medical services;
2-13 (2) a judgment of a court in this state or the
2-14 decision of a public agency in a proceeding brought by the injured
2-15 individual or by another person entitled to bring the suit in case
2-16 of the death of the individual to recover damages arising from an
2-17 injury for which the injured individual is admitted to the hospital
2-18 or receives emergency medical services; and
2-19 (3) the proceeds of a settlement of a cause of action
2-20 or a claim by the injured individual or another person entitled to
2-21 make the claim, arising from an injury for which the injured
2-22 individual is admitted to the hospital or receives emergency
2-23 medical services.
2-24 (b) The lien does not attach to:
2-25 (1) a claim under the workers' compensation law of
2-26 this state, the Federal Employees Liability Act, or the Federal
3-1 Longshore and [Longshoremen's or] Harbor Workers' Compensation Act;
3-2 or
3-3 (2) [a claim against the owner or operator of a
3-4 railroad company that maintains or whose employees maintain a
3-5 hospital in which the injured individual is receiving hospital
3-6 services; or]
3-7 [(3)] the proceeds of an insurance policy in favor of
3-8 the injured individual or the injured individual's beneficiary or
3-9 legal representative, except public liability insurance carried by
3-10 the insured that protects the insured against loss caused by an
3-11 accident or collision.
3-12 (c) A hospital lien described by Section 55.002(a) does not
3-13 attach to a claim against the owner or operator of a railroad
3-14 company that maintains or whose employees maintain a hospital in
3-15 which the injured individual is receiving hospital services.
3-16 Sec. 55.004. AMOUNT OF LIEN. (a) A hospital [The] lien
3-17 described by Section 55.002(a) is for the amount of the hospital's
3-18 charges for services provided to the injured individual during the
3-19 first 100 days of the injured individual's hospitalization, except
3-20 that the lien does not cover:
3-21 (1) charges for operating costs that exceed the cost
3-22 limits established under Section 413.30 [405.460], 42 Code of
3-23 Federal Regulations; [or]
3-24 (2) charges for other services that exceed a
3-25 reasonable and regular rate for the services;
3-26 (3) charges by the emergency medical services provider
4-1 related to any services for which the emergency medical services
4-2 provider has accepted insurance benefits or payment under a private
4-3 medical indemnity plan or program, regardless of whether the
4-4 benefits or payment equals the full amount of the provider's
4-5 charges for those services; or
4-6 (4) charges by the emergency medical services provider
4-7 for services provided if the injured individual has coverage under
4-8 a private medical indemnity plan or program from which the provider
4-9 is entitled to recover payment for the provider's services under an
4-10 assignment of benefits or similar right.
4-11 (b) An emergency medical services lien described by Section
4-12 55.002(b) is for the amount charged by the emergency medical
4-13 services provider for emergency medical services provided to the
4-14 injured individual during the 72 hours following the accident that
4-15 caused the individual's injuries, except that the lien does not
4-16 cover charges for services that exceed a reasonable and regular
4-17 rate for the services.
4-18 (c) A hospital [The] lien described by Section 55.002(a) is
4-19 not affected by a hospital's use of a method of classifying
4-20 patients according to their ability to pay that is solely intended
4-21 to obtain a lien for services provided to an indigent injured
4-22 individual.
4-23 Sec. 55.005. SECURING LIEN. (a) To secure the lien, a
4-24 hospital or emergency medical services provider must file written
4-25 notice of the lien with the county clerk of the county in which the
4-26 [hospital] services were provided. The notice must be filed before
5-1 money is paid to an entitled person because of the injury.
5-2 (b) The notice must contain:
5-3 (1) the injured individual's name and address;
5-4 (2) the date of the accident;
5-5 (3) the name and location of the hospital or emergency
5-6 medical services provider claiming the lien; and
5-7 (4) the name of the person alleged to be liable for
5-8 damages arising from the injury, if known.
5-9 (c) The county clerk shall record the name of the injured
5-10 individual, the date of the accident, and the name and address of
5-11 the hospital or emergency medical services provider and shall index
5-12 the record in the name of the injured individual.
5-13 Sec. 55.006. DISCHARGE OF LIEN. (a) To discharge a [the]
5-14 lien under this chapter, the [hospital] authorities of the hospital
5-15 or emergency medical services provider claiming the lien or the
5-16 person in charge of the finances of the hospital or emergency
5-17 medical services provider must execute and file with the county
5-18 clerk of the county in which the lien notice was filed a
5-19 certificate stating that the debt covered by the lien has been paid
5-20 or released and authorizing the clerk to discharge the lien.
5-21 (b) The county clerk shall record a memorandum of the
5-22 certificate and the date it was filed.
5-23 (c) The filing of the certificate and recording of the
5-24 memorandum discharge the lien.
5-25 Sec. 55.007. VALIDITY OF RELEASE. (a) A release of a cause
5-26 of action or judgment to which a [the] lien under this chapter may
6-1 attach is not valid unless:
6-2 (1) the [hospital's] charges of the hospital or
6-3 emergency medical services provider claiming the lien were paid in
6-4 full before the execution and delivery of the release;
6-5 (2) the [hospital's] charges of the hospital or
6-6 emergency medical services provider claiming the lien were paid
6-7 before the execution and delivery of the release to the extent of
6-8 any full and true consideration paid to the injured individual by
6-9 or on behalf of the other parties to the release; or
6-10 (3) the hospital or emergency medical services
6-11 provider claiming the lien is a party to the release.
6-12 (b) A judgment to which a [the] lien under this chapter has
6-13 attached remains in effect until the [hospital's] charges of the
6-14 hospital or emergency medical services provider claiming the lien
6-15 are paid in full or to the extent set out in the judgment.
6-16 Sec. 55.008. [HOSPITAL] RECORDS. (a) On request by an
6-17 attorney for a party by, for, or against whom a claim is asserted
6-18 for damages arising from an injury, a hospital or emergency medical
6-19 services provider shall as promptly as possible make available for
6-20 the attorney's examination its records concerning the services
6-21 provided to the injured individual.
6-22 (b) The hospital or emergency medical services provider may
6-23 issue reasonable rules for granting access to its records under
6-24 this section, but it may not deny access because a record is
6-25 incomplete.
6-26 (c) The records are admissible, subject to applicable rules
7-1 of evidence, in a civil suit arising from the injury.
7-2 SECTION 2. (a) This Act takes effect September 1, 2001.
7-3 (b) The change in law made by this Act applies only to
7-4 emergency medical services provided by an emergency medical
7-5 services provider on or after the effective date of this Act.
7-6 Emergency medical services provided by an emergency medical
7-7 services provider before the effective date of this Act are
7-8 governed by the law in effect at the time the services were
7-9 provided, and the former law is continued in effect for that
7-10 purpose.