Sec. 3. (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

Terms Used In Indiana Code 32-33-4-3

  • Attorney: includes a counselor or other person authorized to appear and represent a party in an action or special proceeding. See Indiana Code 1-1-4-5
  • Contract: A legal written agreement that becomes binding when signed.
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Judgment: means all final orders, decrees, and determinations in an action and all orders upon which executions may issue. See Indiana Code 1-1-4-5
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
  • Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
(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.]

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.

  Previous section
Next section  
 Chapter 4 Contents