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Texas Hospital Lien Statute

AN OVERVIEW OF THE TEXAS HOSPITAL LIEN AND EMERGENCY MEDICAL SERVICES LIEN STATUTE:

The Texas Hospital and Emergency Medical Services Lien Statute can be found at Chapter 55 of the Texas Property Code. The statute was originally enacted in 1933 to provide hospitals an additional method of securing payment for medical services, thus encouraging prompt and adequate treatment of accident victims. The legislature’s intent was to provide hospitals with a separate cause of action to satisfy their liens and at the same time ensure that accident victims receive the treatment they need promptly, without the hospital worrying about reimbursement for their cost. In 2003 the legislature revised the Texas Hospital Lien Statute to also include emergency medical services providers that provide services in counties with a population of 575,000 or less. This means that now ambulatory services can also file a lien to recover funds for services rendered when an individual is injured in a motor vehicle accident.

The lien attaches to the patient’s right of action against a third party that negligently causes personal injuries for which he or she was treated. The lien also attaches to money paid as a result of a claim or lawsuit for personal injuries sustained by a patient involved in an accident. A hospital with a properly filed lien has a valid cause of action against settling parties and their insurers who ignore the hospital bill when settling claims. The hospital can successfully recover against all parties involved in a settlement for violating the hospital lien statute. Texas case law has even ruled in favor of the hospital when insurance companies and attorneys disburse proceeds of a settlement or judgment without satisfying the hospital bill first.