Senate Bill 1928

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    Florida Senate - 2000                                  SB 1928

    By Senator Grant





    13-1117-00

  1                      A bill to be entitled

  2         An act relating to liens; creating the Florida

  3         Hospital Lien Act; providing a lien on

  4         judgments and settlements recovered from a

  5         tortfeasor causing a patient's injury for

  6         hospitals for reasonable charges owed for

  7         services provided to an injured person;

  8         providing limitations; providing for

  9         determination by the court of amount of

10         recovery when a patient and hospital cannot

11         agree on the actual amount; providing for

12         reduction of the lien by any payments to the

13         hospital by or on behalf of a patient;

14         providing for notification to the hospital of

15         the patient's intent to claim damages from the

16         tortfeasor; requiring the hospital to state its

17         intent to assert its lien within a prescribed

18         time; providing a waiver of the right for

19         failure to so state; requiring a hospital to

20         provide a patient with reasonably necessary

21         information; providing an effective date.

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23  Be It Enacted by the Legislature of the State of Florida:

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25         Section 1.  (1)  This section may be cited as the

26  "Florida Hospital Lien Act".

27         (2)  Every hospital as defined in chapter 395, Florida

28  Statutes, which is in full compliance with that chapter is

29  entitled to a lien under this section, for all reasonable

30  hospital charges due and owing to the hospital for medically

31  necessary health care services provided to an injured person,

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    Florida Senate - 2000                                  SB 1928
    13-1117-00




  1  upon the proceeds of judgments and settlements recovered from

  2  a tortfeasor who caused the injuries to the injured person

  3  thus necessitating the health care services. As used in this

  4  section, the term "patient" includes the legal representatives

  5  of the injured person.

  6         (3)  The lien for all reasonable charges is limited to

  7  the actual amount of all reasonable charges recovered by the

  8  patient from a tortfeasor, less the hospital's pro rata share

  9  of costs and attorney's fees incurred by the patient in

10  recovering such charges from the tortfeasor. In determining

11  the hospital's pro rata share of those costs and attorney's

12  fees, the hospital must have deducted from its recovery an

13  amount equal to the percentage of the judgment or settlement

14  which is for costs and attorney's fees.

15         (4)  All reasonable charges must be calculated after

16  reduction for all amounts paid or at any time payable under

17  any third-party-payor contract or agreements between the

18  hospital and third-party payors or from any other private,

19  public, county, state, or federal insurance, contract,

20  agreement, benefit, program, or plan. All reasonable charges

21  must be calculated after all adjustments, reductions, and

22  write-offs, in accordance with all third-party-payor contracts

23  and agreements between the hospital and third-party payors,

24  and in accordance with any other private, public, county,

25  state, or federal insurance contract, agreement, benefit,

26  program, or plan.

27         (5)  If there is no amount paid or at any time payable

28  under any third-party-payor contract or agreement between the

29  hospital and third-party payors, or from any other private,

30  public, county, state, or federal insurance, contract,

31  agreement, benefit, program, or plan, the amount of reasonable

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    Florida Senate - 2000                                  SB 1928
    13-1117-00




  1  charges must be determined under the third-party-payor

  2  contract or agreement entered into between the hospital and a

  3  third-party payor which provides for the lowest charges agreed

  4  to as acceptable by the hospital, taking into account all

  5  reductions and write-offs provided for in the

  6  third-party-payor contract or agreement in effect at the time

  7  the charges were incurred.

  8         (6)  If the patient and hospital fail to agree to the

  9  actual amount of the charges recovered from a tortfeasor, the

10  court in which the patient's claim against the tortfeasor was

11  filed, or if never filed, the circuit court of the county in

12  which the cause of action arose, shall determine the actual

13  amount of the charges recovered from a tortfeasor. In

14  determining the actual amount of charges recovered,

15  consideration must be given to any offset in the amount of

16  settlement or judgment for any comparative negligence of the

17  patient, negligence of other tortfeasors, limitations in the

18  amount of liability insurance coverage available to the

19  tortfeasor, or any other mitigating factors determined

20  equitable and appropriate under the circumstances.

21         (7)  The hospital-lien recovery from the judgment or

22  settlement as calculated under this section must be reduced by

23  any payments to the hospital by the patient and by any

24  payments to the hospital by any other individual or entity

25  making a voluntary donation on behalf of the patient.

26         (8)  A patient shall send the hospital, by certified or

27  registered mail, notification of his or her intent to claim

28  damages from the tortfeasor. If the claimant has filed suit

29  against the tortfeasor at the time such notice is sent, a copy

30  of the complaint against the tortfeasor should be included

31  with the notice. The notice must include a statement that the

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    Florida Senate - 2000                                  SB 1928
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  1  hospital waives any lien if it does not provide the patient or

  2  patient's attorney with a statement asserting the lien and the

  3  amount of all reasonable charges within 30 days following

  4  receipt of the patient's notification to the hospital.

  5         (9)  Within 30 days after receipt of the patient's

  6  notice of intent to claim damages from the tortfeasor, the

  7  hospital must provide the patient or patient's attorney with a

  8  statement asserting its lien. Failure of the hospital to

  9  provide this statement to the patient or patient's attorney

10  within the 30-day period constitutes a waiver of any lien; and

11  no lien exists if the lien has been waived pursuant to this

12  section.

13         (10)  Payment to the hospital pursuant to this section

14  fully satisfies the patient's hospital charges and bill.

15         (11)  A hospital shall cooperate with the patient and

16  the patient's attorney by producing at no charge to the

17  patient all reasonably necessary information to assist the

18  patient in proving his or her claim against the tortfeasor.

19  Reasonably necessary information includes, but is not limited

20  to, hospital bills and medical records.

21         Section 2.  This act shall take effect July 1, 2000,

22  and shall apply to all hospital charges incurred on or after

23  that date.

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    Florida Senate - 2000                                  SB 1928
    13-1117-00




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  2                          SENATE SUMMARY

  3    Creates the Florida Hospital Lien Act. Provides a lien on
      judgments and settlements recovered from a tortfeasor
  4    causing a patient's injury for reasonable charges owed
      for services provided to an injured person. Provides
  5    limitations. Provides for a determination by a court of
      the amount of recovery when a patient and hospital cannot
  6    agree on the actual amount of the recovery. Provides for
      a reduction of the lien by any payments to the hospital
  7    by or on behalf of the patient. Provides for notification
      to the hospital of the patient's intent to claim damages
  8    from the tortfeasor. Requires the hospital to state its
      intent to assert its lien within a prescribed time, or
  9    its right to the lien is waived. Requires a hospital to
      provide a patient with reasonably necessary information.
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