By Ogden S.B. No. 913
77R4046 AJA-D
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
2-1 the same injury.
2-2 (b) An emergency medical services provider has a lien on a
2-3 cause of action or claim of an individual who receives emergency
2-4 medical services for injuries caused by an accident that is
2-5 attributed to the negligence of another person. For the lien to
2-6 attach, the individual must receive the emergency medical services
2-7 not later 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
2-27 Longshore and [Longshoremen's or] Harbor Workers' Compensation Act;
3-1 or
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 (c) A hospital lien described by Section 55.002(a) does not
3-12 attach to a claim against the owner or operator of a railroad
3-13 company that maintains or whose employees maintain a hospital in
3-14 which the injured individual is receiving hospital services.
3-15 Sec. 55.004. AMOUNT OF LIEN. (a) A hospital [The] lien
3-16 described by Section 55.002(a) is for the amount of the hospital's
3-17 charges for services provided to the injured individual during the
3-18 first 100 days of the injured individual's hospitalization, except
3-19 that the lien does not cover:
3-20 (1) charges for operating costs that exceed the cost
3-21 limits established under Section 405.460, 42 Code of Federal
3-22 Regulations; or
3-23 (2) charges for other services that exceed a
3-24 reasonable and regular rate for the services.
3-25 (b) An emergency medical services lien described by Section
3-26 55.002(b) is for the amount charged by the emergency medical
3-27 services provider for emergency medical services provided to the
4-1 injured individual during the 72 hours following the accident that
4-2 caused the individual's injuries, except that the lien does not
4-3 cover charges for services that exceed a reasonable and regular
4-4 rate for the services.
4-5 (c) A hospital [The] lien described by Section 55.002(a) is
4-6 not affected by a hospital's use of a method of classifying
4-7 patients according to their ability to pay that is solely intended
4-8 to obtain a lien for services provided to an indigent injured
4-9 individual.
4-10 Sec. 55.005. SECURING LIEN. (a) To secure the lien, a
4-11 hospital or emergency medical services provider must file written
4-12 notice of the lien with the county clerk of the county in which the
4-13 [hospital] services were provided. The notice must be filed before
4-14 money is paid to an entitled person because of the injury.
4-15 (b) The notice must contain:
4-16 (1) the injured individual's name and address;
4-17 (2) the date of the accident;
4-18 (3) the name and location of the hospital or emergency
4-19 medical services provider claiming the lien; and
4-20 (4) the name of the person alleged to be liable for
4-21 damages arising from the injury, if known.
4-22 (c) The county clerk shall record the name of the injured
4-23 individual, the date of the accident, and the name and address of
4-24 the hospital or emergency medical services provider and shall index
4-25 the record in the name of the injured individual.
4-26 Sec. 55.006. DISCHARGE OF LIEN. (a) To discharge a [the]
4-27 lien under this chapter, the [hospital] authorities of the hospital
5-1 or emergency medical services provider claiming the lien or the
5-2 person in charge of the finances of the hospital or emergency
5-3 medical services provider must execute and file with the county
5-4 clerk of the county in which the lien notice was filed a
5-5 certificate stating that the debt covered by the lien has been paid
5-6 or released and authorizing the clerk to discharge the lien.
5-7 (b) The county clerk shall record a memorandum of the
5-8 certificate and the date it was filed.
5-9 (c) The filing of the certificate and recording of the
5-10 memorandum discharge the lien.
5-11 Sec. 55.007. VALIDITY OF RELEASE. (a) A release of a cause
5-12 of action or judgment to which a [the] lien under this chapter may
5-13 attach is not valid unless:
5-14 (1) the [hospital's] charges of the hospital or
5-15 emergency medical services provider claiming the lien were paid in
5-16 full before the execution and delivery of the release;
5-17 (2) the [hospital's] charges of the hospital or
5-18 emergency medical services provider claiming the lien were paid
5-19 before the execution and delivery of the release to the extent of
5-20 any full and true consideration paid to the injured individual by
5-21 or on behalf of the other parties to the release; or
5-22 (3) the hospital or emergency medical services
5-23 provider claiming the lien is a party to the release.
5-24 (b) A judgment to which a [the] lien under this chapter has
5-25 attached remains in effect until the [hospital's] charges of the
5-26 hospital or emergency medical services provider claiming the lien
5-27 are paid in full or to the extent set out in the judgment.
6-1 Sec. 55.008. [HOSPITAL] RECORDS. (a) On request by an
6-2 attorney for a party by, for, or against whom a claim is asserted
6-3 for damages arising from an injury, a hospital or emergency medical
6-4 services provider shall as promptly as possible make available for
6-5 the attorney's examination its records concerning the services
6-6 provided to the injured individual.
6-7 (b) The hospital or emergency medical services provider may
6-8 issue reasonable rules for granting access to its records under
6-9 this section, but it may not deny access because a record is
6-10 incomplete.
6-11 (c) The records are admissible, subject to applicable rules
6-12 of evidence, in a civil suit arising from the injury.
6-13 SECTION 2. (a) This Act takes effect September 1, 2001.
6-14 (b) The change in law made by this Act applies only to
6-15 emergency medical services provided by an emergency medical
6-16 services provider on or after the effective date of this Act.
6-17 Emergency medical services provided by an emergency medical
6-18 services provider before the effective date of this Act are
6-19 governed by the law in effect at the time the services were
6-20 provided, and the former law is continued in effect for that
6-21 purpose.