§ 32-33-4-3 — Lien for reasonable and necessary charges upon any claims accruing to patient; scope of lien; allowance to patient

(a) A person, a firm, a partnership, an
association, a limited liability company, or a corporation maintaining
a hospital in Indiana or a hospital owned, maintained, or operated by
the state or a political subdivision has a lien for all reasonable and
necessary charges for hospital care, treatment, and maintenance of a
patient (including emergency ambulance services provided by the
hospital and any amount designated as a copayment or deductible)
upon any cause of action, suit, or claim accruing to the patient, or in the
case of the patient's death, the patient's legal representative, because of
the illness or injuries that:
(1) gave rise to the cause of action, suit, or claim; and
(2) necessitated the hospital care, treatment, and maintenance.
(b) The lien provided for in subsection (a):
(1) except as provided in subsection (c), applies to any amount
obtained or recovered by the patient by settlement or compromise
rendered or entered into by the patient or by the patient's legal
representative;
(2) is subject and subordinate to any attorney's lien upon the claim
or cause of action;
(3) is not applicable to a person covered by:
(A) the provisions of IC 22-3, the state worker's compensation
laws;
(B) the provisions of 5 U.S.C. 8101 et seq., the federal worker's
compensation laws;
(C) 45 U.S.C. 51 et seq., the federal liability act;
(D) IC 34-13-8 concerning a distribution paid from the
supplemental state fair relief fund to an eligible person (as
defined in IC 34-13-8-1) for an occurrence (as defined in IC 34-13-8-2); or
(E) the provisions of 42 U.S.C. 1395 et seq., the federal
Medicare program;
(4) is not assignable; and
(5) must:
(A) first be reduced by the amount of any benefits to which the
patient is entitled under the terms of any contract, health plan,
or medical insurance; and
(B) reflect credits for all payments, contractual adjustments,
write-offs, and any other benefit in favor of the patient;
after the hospital has made all reasonable efforts to pursue the
insurance claims in cooperation with the patient.
(c) If a settlement or compromise that is subject to subsection (b)(1)
is for an amount that would permit the patient to receive less than
twenty percent (20%) of the full amount of the settlement or
compromise if all the liens created under this chapter were paid in full,
the liens must be reduced on a pro rata basis to the extent that will
permit the patient to receive twenty percent (20%) of the full amount.
(d) A lien provided for in this chapter does not apply to a judgment,
cause of action, suit, or claim accruing to the patient under:
(1) a policy of disability insurance; or
(2) automobile or homeowner's insurance that provides for
medical payments.
[Pre-2002 Recodification Citation: 32-8-26-3.]

Legislative History

As added by P.L.2-2002, SEC.18. Amended by P.L.160-2012, SEC.60; P.L.173-2013, SEC.2; P.L.205-2013, SEC.341.