Most victims are focused on recovering compensation from the at-fault driver after a car accident in Tennessee, and for good reason. What many people do not realize, however, is that certain parties who paid for your medical treatment have a legal right to claim a portion of whatever you recover. These claims are called medical liens, and they can reduce the amount of your Nashville car accident settlement that actually ends up in your pocket.
Learning about how medical liens work in Tennessee is important because they directly affect your bottom line. Below, we’ll cover who can file a lien against your settlement and what options you have for managing them.
What Is a Medical Lien and How Does It Work Under Tennessee Law?
A medical lien is a legal claim filed by a healthcare provider or insurer to recover the cost of treatment they provided after your accident. In Tennessee, the Hospital Lien Act under T.C.A. § 29-22-101 gives hospitals the right to attach a lien for all reasonable and necessary medical expenses related to your care against any personal injury claim you bring.
There are specific rules that hospitals must follow for the lien to be valid. The facility must file the lien with the county register of deeds within 120 days of the patient’s discharge. If the hospital misses this deadline, it forfeits its right to collect directly from your settlement.
Tennessee law also places a cap on hospital liens. Per state law, a hospital lien cannot exceed one-third of the total damages you recover through a judgment, settlement, or compromise. This cap is a hard limit designed to ensure that medical providers do not consume an unreasonable portion of your recovery. Note as well that your attorney’s lien takes priority over the hospital’s, meaning legal fees are deducted first.
Who Can Place a Medical Lien on My Car Accident Settlement?
Hospitals are not the only parties that may assert a lien against your recovery. Depending on how your treatment was paid for, several entities could have a claim:
- Hospitals that provided emergency or inpatient care after the accident
- TennCare, if Tennessee’s Medicaid program covered any portion of your treatment under T.C.A. § 71-5-117
- Medicare, which holds recovery rights under the Medicare Secondary Payer Act
- Private health insurance carriers exercising subrogation rights under the terms of your policy
- Self-funded employer health plans governed by federal ERISA regulations
Each of these parties follows different rules for filing and enforcing their liens. Some must be formally filed, while others attach automatically. Failing to address any of them before distributing settlement funds can lead to serious legal and financial consequences down the road.
Woodard Injury Law Can Protect Your Settlement
Medical liens are a reality in most Tennessee car accident cases, but they do not have to eat up your entire compensation. An experienced car accident lawyer can work to keep as much of your compensation in your hands as possible.
Call Woodard Injury Law today at (615) 640-3648 to schedule a free consultation. We’ve recovered millions of dollars for car accident victims in the state and will make your case our priority from the moment you decide to hire us.