1-1 By: Ogden S.B. No. 913
1-2 (In the Senate - Filed February 23, 2001; February 27, 2001,
1-3 read first time and referred to Committee on Jurisprudence;
1-4 April 5, 2001, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 4, Nays 1; April 5, 2001,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 913 By: Duncan
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to a lien on a cause of action or claim of an individual
1-11 who receives certain medical services.
1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13 SECTION 1. Chapter 55, Property Code, is amended to read as
1-14 follows:
1-15 CHAPTER 55. HOSPITAL AND EMERGENCY MEDICAL SERVICES LIENS [LIEN]
1-16 Sec. 55.001. DEFINITIONS. In this chapter:
1-17 (1) "Emergency medical services" has the meaning
1-18 assigned by Section 773.003, Health and Safety Code.
1-19 (2) "Emergency medical services provider" has the
1-20 meaning assigned by Section 773.003, Health and Safety Code.
1-21 (3) "Hospital" means a person or institution
1-22 maintaining a facility that provides hospital services in this
1-23 state.
1-24 (4) [(2)] "Person" does not include a county, common,
1-25 or independent school district.
1-26 Sec. 55.002. LIEN. (a) A hospital has a lien on a cause of
1-27 action or claim of an individual who receives hospital services for
1-28 injuries caused by an accident that is attributed to the negligence
1-29 of another person. For the lien to attach, the individual must be
1-30 admitted to a hospital not later than 72 hours after the accident.
1-31 [(b)] The lien extends to both the admitting hospital and a
1-32 hospital to which the individual is transferred for treatment of
1-33 the same injury.
1-34 (b) An emergency medical services provider has a lien on a
1-35 cause of action or claim of an individual who receives emergency
1-36 medical services in a county with a population of 275,000 or less
1-37 for injuries caused by an accident that is attributed to the
1-38 negligence of another person. For the lien to attach, the
1-39 individual must receive the emergency medical services not later
1-40 than 72 hours after the accident.
1-41 Sec. 55.003. PROPERTY TO WHICH LIEN ATTACHES. (a) A [The]
1-42 lien under this chapter attaches to:
1-43 (1) a cause of action for damages arising from an
1-44 injury for which the injured individual is admitted to the hospital
1-45 or receives emergency medical services;
1-46 (2) a judgment of a court in this state or the
1-47 decision of a public agency in a proceeding brought by the injured
1-48 individual or by another person entitled to bring the suit in case
1-49 of the death of the individual to recover damages arising from an
1-50 injury for which the injured individual is admitted to the hospital
1-51 or receives emergency medical services; and
1-52 (3) the proceeds of a settlement of a cause of action
1-53 or a claim by the injured individual or another person entitled to
1-54 make the claim, arising from an injury for which the injured
1-55 individual is admitted to the hospital or receives emergency
1-56 medical services.
1-57 (b) The lien does not attach to:
1-58 (1) a claim under the workers' compensation law of
1-59 this state, the Federal Employees Liability Act, or the Federal
1-60 Longshore and [Longshoremen's or] Harbor Workers' Compensation Act;
1-61 or
1-62 (2) [a claim against the owner or operator of a
1-63 railroad company that maintains or whose employees maintain a
1-64 hospital in which the injured individual is receiving hospital
2-1 services; or]
2-2 [(3)] the proceeds of an insurance policy in favor of
2-3 the injured individual or the injured individual's beneficiary or
2-4 legal representative, except public liability insurance carried by
2-5 the insured that protects the insured against loss caused by an
2-6 accident or collision.
2-7 (c) A hospital lien described by Section 55.002(a) does not
2-8 attach to a claim against the owner or operator of a railroad
2-9 company that maintains or whose employees maintain a hospital in
2-10 which the injured individual is receiving hospital services.
2-11 Sec. 55.004. AMOUNT OF LIEN. (a) A hospital [The] lien
2-12 described by Section 55.002(a) is for the amount of the hospital's
2-13 charges for services provided to the injured individual during the
2-14 first 100 days of the injured individual's hospitalization, except
2-15 that the lien does not cover:
2-16 (1) charges for operating costs that exceed the cost
2-17 limits established under Section 413.30 [405.460], 42 Code of
2-18 Federal Regulations; [or]
2-19 (2) charges for other services that exceed a
2-20 reasonable and regular rate for the services;
2-21 (3) charges by the emergency medical services provider
2-22 related to any services for which the emergency medical services
2-23 provider has accepted insurance benefits or payment under a private
2-24 medical indemnity plan or program, regardless of whether the
2-25 benefits or payment equals the full amount of the provider's
2-26 charges for those services; or
2-27 (4) charges by the emergency medical services provider
2-28 for services provided if the injured individual has coverage under
2-29 a private medical indemnity plan or program from which the provider
2-30 is entitled to recover payment for the provider's services under an
2-31 assignment of benefits or similar right.
2-32 (b) An emergency medical services lien described by Section
2-33 55.002(b) is for the amount charged by the emergency medical
2-34 services provider for emergency medical services provided to the
2-35 injured individual during the 72 hours following the accident that
2-36 caused the individual's injuries, except that the lien does not
2-37 cover charges for services that exceed a reasonable and regular
2-38 rate for the services.
2-39 (c) A hospital [The] lien described by Section 55.002(a) is
2-40 not affected by a hospital's use of a method of classifying
2-41 patients according to their ability to pay that is solely intended
2-42 to obtain a lien for services provided to an indigent injured
2-43 individual.
2-44 Sec. 55.005. SECURING LIEN. (a) To secure the lien, a
2-45 hospital or emergency medical services provider must file written
2-46 notice of the lien with the county clerk of the county in which the
2-47 [hospital] services were provided. The notice must be filed before
2-48 money is paid to an entitled person because of the injury.
2-49 (b) The notice must contain:
2-50 (1) the injured individual's name and address;
2-51 (2) the date of the accident;
2-52 (3) the name and location of the hospital or emergency
2-53 medical services provider claiming the lien; and
2-54 (4) the name of the person alleged to be liable for
2-55 damages arising from the injury, if known.
2-56 (c) The county clerk shall record the name of the injured
2-57 individual, the date of the accident, and the name and address of
2-58 the hospital or emergency medical services provider and shall index
2-59 the record in the name of the injured individual.
2-60 Sec. 55.006. DISCHARGE OF LIEN. (a) To discharge a [the]
2-61 lien under this chapter, the [hospital] authorities of the hospital
2-62 or emergency medical services provider claiming the lien or the
2-63 person in charge of the finances of the hospital or emergency
2-64 medical services provider must execute and file with the county
2-65 clerk of the county in which the lien notice was filed a
2-66 certificate stating that the debt covered by the lien has been paid
2-67 or released and authorizing the clerk to discharge the lien.
2-68 (b) The county clerk shall record a memorandum of the
2-69 certificate and the date it was filed.
3-1 (c) The filing of the certificate and recording of the
3-2 memorandum discharge the lien.
3-3 Sec. 55.007. VALIDITY OF RELEASE. (a) A release of a cause
3-4 of action or judgment to which a [the] lien under this chapter may
3-5 attach is not valid unless:
3-6 (1) the [hospital's] charges of the hospital or
3-7 emergency medical services provider claiming the lien were paid in
3-8 full before the execution and delivery of the release;
3-9 (2) the [hospital's] charges of the hospital or
3-10 emergency medical services provider claiming the lien were paid
3-11 before the execution and delivery of the release to the extent of
3-12 any full and true consideration paid to the injured individual by
3-13 or on behalf of the other parties to the release; or
3-14 (3) the hospital or emergency medical services
3-15 provider claiming the lien is a party to the release.
3-16 (b) A judgment to which a [the] lien under this chapter has
3-17 attached remains in effect until the [hospital's] charges of the
3-18 hospital or emergency medical services provider claiming the lien
3-19 are paid in full or to the extent set out in the judgment.
3-20 Sec. 55.008. [HOSPITAL] RECORDS. (a) On request by an
3-21 attorney for a party by, for, or against whom a claim is asserted
3-22 for damages arising from an injury, a hospital or emergency medical
3-23 services provider shall as promptly as possible make available for
3-24 the attorney's examination its records concerning the services
3-25 provided to the injured individual.
3-26 (b) The hospital or emergency medical services provider may
3-27 issue reasonable rules for granting access to its records under
3-28 this section, but it may not deny access because a record is
3-29 incomplete.
3-30 (c) The records are admissible, subject to applicable rules
3-31 of evidence, in a civil suit arising from the injury.
3-32 SECTION 2. (a) This Act takes effect September 1, 2001.
3-33 (b) The change in law made by this Act applies only to
3-34 emergency medical services provided by an emergency medical
3-35 services provider on or after the effective date of this Act.
3-36 Emergency medical services provided by an emergency medical
3-37 services provider before the effective date of this Act are
3-38 governed by the law in effect at the time the services were
3-39 provided, and the former law is continued in effect for that
3-40 purpose.
3-41 * * * * *