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H.B. 107 Enrolled





Chief Sponsor: Mike K. McKell

Senate Sponsor: John L. Valentine

             7      LONG TITLE
             8      General Description:
             9          This bill modifies the Hospital Lien Law.
             10      Highlighted Provisions:
             11          This bill:
             12          .    subject to certain exceptions, prohibits a hospital from asserting a lien upon a
             13      judgment, settlement, or compromise relating to an accident if treatment for the
             14      accident is covered by workers' compensation or private health insurance; and
             15          .    makes technical changes.
             16      Money Appropriated in this Bill:
             17          None
             18      Other Special Clauses:
             19          None
             20      Utah Code Sections Affected:
             21      AMENDS:
             22          38-7-1, as last amended by Laws of Utah 1996, Chapter 167
             24      Be it enacted by the Legislature of the state of Utah:
             25          Section 1. Section 38-7-1 is amended to read:
             26           38-7-1. Lien of hospital on judgment, settlement, or compromise in certain
             27      accident cases authorized.
             28          (1) [Every] (a) Except as provided in Subsection (3), a hospital located within the state
             29      that furnishes emergency, medical, or other service to a patient injured by reason of an accident

             30      [not covered by workmen's compensation] is entitled to assert a lien upon that portion of the
             31      judgment, settlement, or compromise going or belonging to [such] the patient, or, in the case of
             32      death, to [such] the patient's heirs or personal representatives, less the amount paid by the
             33      patient, or on behalf of [such] the patient[,] by heirs or personal representatives, for [attorney's]
             34      attorney fees, court costs, and other necessary expenses incidental to obtaining the judgment,
             35      settlement, or compromise[; provided, that no].
             36          (b) No reduction of the asserted lien amount is allowed other than the amount paid by
             37      the patient, or [such] the patient's heirs, or personal representatives for [attorney's] attorney
             38      fees, court costs, and other necessary expenses incidental to litigation [is allowed], unless
             39      otherwise agreed to in writing by the lien claimant.
             40          (c) The hospital lien[, however, shall] does not apply to [any] a judgment, settlement,
             41      or compromise where the amount is $100 or less. [This subsection shall apply to any lien on
             42      file in the district court of the county on the effective date of this act. Liens on file with the
             43      office of the county clerk shall be transferred to the respective county district court on May 1,
             44      1996.]
             45          (2) A hospital [lien may be filed upon damages recovered, or to be recovered, either as
             46      a result of a judgment, or upon a contract of settlement or compromise,] may file a lien
             47      described in Subsection (1) for the amount of the reasonable, usual, and necessary hospital
             48      charges for treatment, care, and maintenance of the injured party in the hospital up to the date
             49      of payment of the damages.
             50          (3) (a) Except as provided in Subsection (3)(b), a hospital may not assert a lien under
             51      Subsection (1) if the services provided by the hospital are covered by workers' compensation or
             52      private health insurance.
             53          (b) (i) A hospital that provides a service described in Subsection (3)(a) may assert a
             54      lien under Subsection (1) if:
             55          (A) the private health insurer denies coverage; or
             56          (B) the private health insurer does not pay the hospital within 180 days after the day on
             57      which the hospital bills the private health insurer.

             58          (ii) A lien asserted under Subsection (3)(b)(i)(B) shall be withdrawn when the private
             59      health insurer pays the contracted amount, or, in the event there is no contract, the amount
             60      agreed to by the private health insurer and the hospital for the service rendered.
             61          (iii) A hospital that provides a service described in Subsection (3)(a) may assert a lien
             62      under Subsection (1) for a copayment or deductible owed by the patient if the amount of the
             63      copayment or deductible conforms with any contractual discount provided by the hospital to
             64      the insurer.

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