By: Ellis H.B. No. 180
A BILL TO BE ENTITLED
AN ACT
relating to a lien on a cause of action or claim of an individual who
receives certain medical services.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 55, Property Code, is amended to read as
follows:
CHAPTER 55. HOSPITAL AND EMERGENCY MEDICAL SERVICES LIENS [LIEN]
Sec. 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) [(2)] "Person" does not include a county, common,
or independent school district.
Sec. 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.
(b) An emergency medical services provider has a lien on a
cause of action or claim of an individual who receives emergency
medical services 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.
Sec. 55.003. PROPERTY TO WHICH LIEN ATTACHES. (a) A [The]
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 [Longshoremen's or] Harbor Workers' Compensation Act;
or
(2) [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; or
[(3)] 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.
Sec. 55.004. AMOUNT OF LIEN. (a) A hospital [The] 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, except
that the lien does not cover:
(1) charges for operating costs that exceed the cost
limits established under Section 405.460, 42 Code of Federal
Regulations; or
(2) charges for other services that exceed a
reasonable and regular rate for the services.
(b) An emergency medical services lien described by Section
55.002(b) is for the amount charged by the emergency medical
services provider for emergency medical services provided to the
injured individual during the 72 hours following the accident that
caused the individual's injuries, except that the lien does not
cover charges for services that exceed a reasonable and regular
rate for the services.
(c) A hospital [The] 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.
Sec. 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
[hospital] 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.
Sec. 55.006. DISCHARGE OF LIEN. (a) To discharge a [the]
lien under this chapter, the [hospital] 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.
Sec. 55.007. VALIDITY OF RELEASE. (a) A release of a
cause of action or judgment to which a [the] lien under this chapter
may attach is not valid unless:
(1) the [hospital's] 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 [hospital's] 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 [the] lien under this chapter has
attached remains in effect until the [hospital's] 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.
Sec. 55.008. [HOSPITAL] 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.
SECTION 2. (a) This Act takes effect September 1, 2003.
(b) The change in law made by this Act applies only to
emergency medical services provided by an emergency medical
services provider on or after the effective date of this Act.
Emergency medical services provided by an emergency medical
services provider before the effective date of this Act are
governed by the law in effect at the time the services were
provided, and the former law is continued in effect for that
purpose.