H.B. 345

1

HOSPITAL LIEN AMENDMENTS
2 2007 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Stephen H. Urquhart
5 Senate Sponsor: ____________
6
7 LONG TITLE
8 General Description:
9 This bill makes changes to hospital liens.
10 Highlighted Provisions:
11 This bill:
12 . reduces the amount that may be claimed for a hospital lien by the hospital's
13 proportionate share of attorney fees and other costs;
14 . increases the minimum judgment against which a hospital lien may be filed from
15 $100 to $1,000; and
16 . makes technical changes.
17 Monies Appropriated in this Bill:
18 None
19 Other Special Clauses:
20 None
21 Utah Code Sections Affected:
22 AMENDS:
23 38-7-1, as last amended by Chapter 167, Laws of Utah 1996
24 ENACTS:
25 38-7-1.1, Utah Code Annotated 1953
26
27 Be it enacted by the Legislature of the state of Utah:

28 Section 1. Section 38-7-1 is amended to read:
29 38-7-1. Lien of hospital on judgment, settlement, or compromise in certain
30 accident cases authorized.
31 (1) As used in this section and Section 38-7-1.1 , "hospital lien" means a lien filed
32 under Subsection (2).
33 [(1)] (2) (a) Every hospital located within the state that furnishes emergency, medical,
34 or other service to a patient injured by reason of an accident [not covered by workmen's
35 compensation is entitled to] may assert a lien upon that portion of the judgment, settlement, or
36 compromise [going or] belonging to [such] the patient, or, in the case of death, to [such] the
37 patient's heirs or personal representatives, less the amount paid by the patient, or on behalf of
38 [such] the patient[,] by heirs or personal representatives, for [attorney's] attorney fees, court
39 costs, and other necessary expenses incidental to obtaining the judgment, settlement, or
40 compromise[; provided, that].
41 (b) Other than a reduction in a judgment, settlement, or compromise under Section
42 38-7-1.1 , no reduction of the asserted lien amount [other than the amount paid by the patient,
43 or such patient's heirs, or personal representatives for attorney's fees, court costs, and other
44 necessary expenses incidental to litigation] is allowed[, unless otherwise agreed to in writing by
45 the lien claimant. The].
46 (c) A hospital lien[, however, shall] does not apply to any judgment, settlement, or
47 compromise where the amount is [$100] $1,000 or less.
48 (d) This [subsection shall apply] Subsection (2) applies to any hospital lien on file in
49 the district court of the county on [the effective date of this act. Liens on file with the office of
50 the county clerk shall be transferred to the respective county district court on May 1, 1996] or
51 after March 22, 1997.
52 [(2) A] (3) Notwithstanding Subsection (2), a hospital lien may be filed [upon
53 damages recovered, or to be recovered, either as a result of a judgment, or upon a contract of
54 settlement or compromise,] under this section for the amount of the reasonable, usual, and
55 necessary hospital charges for treatment, care, and maintenance of the [injured party] patient in
56 the hospital up to the date of payment of the damages[.], only if, at the time of treatment, the
57 patient did not have:
58 (a) accident and health insurance, as defined in Section 31A-1-301 ; or

59 (b) workers' compensation under Title 34A, Chapter 2, Workers' Compensation Act.
60 Section 2. Section 38-7-1.1 is enacted to read:
61 38-7-1.1. Reduction in a judgment based on hospital lien.
62 (1) For the purpose of this section, "cost of obtaining the judgment, settlement, or
63 compromise":
64 (a) includes court costs, necessary expenses incidental to obtaining the judgment,
65 settlement, or compromise, and attorney fees; and
66 (b) refers to the judgment, settlement, or compromise to which the hospital lien is
67 attached.
68 (2) Before payment of a hospital lien, the amount of the hospital lien shall be reduced
69 by the amount of the cost of obtaining the judgment, settlement, or compromise that is
70 attributable to the lien holder as provided in Subsection (3).
71 (3) The cost of obtaining a judgment, settlement, or compromise attributable to a lien
72 claimant is calculated by:
73 (a) determining the percentage of the judgment, settlement, or compromise represented
74 by the amount claimed in the hospital lien; and
75 (b) multiplying the cost of obtaining the judgment, settlement, or compromise by the
76 percentage identified in Subsection (3)(a).




Legislative Review Note
as of 1-24-07 10:51 AM

Office of Legislative Research and General Counsel