When there is a significant car accident, many times people are injured and medical attention is required. At times, the victim suffering an injury may just need a simple evaluation, yet other times extensive medical treatment is required. Victims with medical insurance do not have to deal with the issue of who will pay for the initial medical bills. However, many Americans are uninsured and therefore a problem arises of who is responsible to pay for the medical bills. In order to solve this problem, both the medical and legal professionals came up with the concept of a medical lien.
When visiting the doctor or the emergency room for an injury, you have probably been asked if your injury was caused due to an accident. Healthcare providers have become accustomed to concluding whether the injuries suffered by the patient are a result of an accident. It is important for healthcare providers to know this information so that they are aware of how they will receive payment. Healthcare providers do not have to accept patients that don’t have insurance. However, if the doctor doesn’t accept the patient, then they could be losing a lot of income since personal injury cases tend to offer a substantial amount of money to the victim. This is the main reason why the medical lien came into play.
When working under lien, the healthcare provider understands that they will not receive payment until the personal injury case is settled. Usually, the healthcare provider and patient have a written agreement about the terms of the lien and treatment. In addition, the healthcare provider and the attorney also may have a written acknowledgement about the lien. The patient’s attorney is usually the one who will receive all checks for the case and will then disperse money to the healthcare provider. If for any reason the patient loses the case or does not receive enough money to cover all medical bills, they are still responsible to pay the full balance for all medical treatments. In most cases though, the attorney and healthcare provider will not see the client on a lien if they don’t feel that the case will win.