Florida Senate - 2010 SB 2464 By Senator Peaden 2-01218-10 20102464__ 1 A bill to be entitled 2 An act relating to hospital liens; creating s. 768.82, 3 F.S.; providing that a hospital is entitled to a lien 4 on the recovery of damages from a tortfeasor who 5 caused or contributed to the illness or injury of a 6 patient; defining the term “patient”; specifying how 7 the amount of the lien is calculated; specifying 8 methods to resolve disputes between the hospital and 9 patient concerning the amount of the hospital’s 10 charges and whether the amount of the patient’s 11 attorney’s fees and costs apportioned to the hospital 12 produce an inequitable result; specifying time periods 13 in which a hospital must assert and record a lien; 14 requiring a patient to send to the hospital a notice 15 of intent to seek damages against a tortfeasor; 16 requiring that a hospital cooperate with the patient 17 to provide information to prove the nature and extent 18 of the value of the hospital services provided; 19 allowing the failure of the hospital to provide such 20 information to be taken into consideration by a court 21 in determining the right to or amount of a lien or in 22 apportioning the patient’s attorney’s fees and costs 23 between the patient and the hospital; specifying the 24 effect of a release, satisfaction of judgment, 25 settlement, or settlement agreement with a tortfeasor; 26 providing that the act supersedes all laws and 27 preempts all local ordinances relating to hospital 28 liens; specifying the applicability of the act to 29 causes of actions for torts accruing before and after 30 the effective date of the act; providing an effective 31 date. 32 33 Be It Enacted by the Legislature of the State of Florida: 34 35 Section 1. Section 768.82, Florida Statutes, is created to 36 read: 37 768.82 Hospital lien against recovery from tortfeasor.— 38 (1) ENTITLEMENT TO LIEN.—A hospital is entitled to a lien 39 upon the proceeds of any judgment, settlement, or settlement 40 agreement concerning the liability of a tortfeasor who caused or 41 contributed to an illness or injury of a patient in the amount 42 authorized by this section. As used in this section, the term 43 “patient” means the ill or injured person or his or her legal 44 representative. 45 (2) AMOUNT OF LIEN.— 46 (a) The amount of the lien shall be equal to the amount of 47 the reasonable charges due and owing to the hospital less: 48 1. The amount of any health insurance payment or other 49 reimbursement paid and any other obligation owed to the hospital 50 by a health care policy, plan, or program on behalf of the 51 patient. 52 2. The hospital’s pro rata share of the attorney’s fees and 53 costs incurred by the patient in the recovery of damages from 54 the tortfeasor. 55 a. If the patient recovers the full value of damages 56 sustained, the hospital’s pro rata share equals the percentage 57 that the amount of the attorney’s fees and costs bear to the 58 total recovery multiplied by the amount of the attorney’s fees 59 and costs. The formula to calculate the pro rata share is 60 illustrated mathematically as follows: 61 62 hospital’s pro rata share = (attorney’s fees and costs/total 63 recovery) x attorney’s fees and costs 64 65 b. If the patient does not or is unable to recover the full 66 value of damages sustained, the hospitals pro rata share equals 67 the percentage that the patient’s recovery less attorney’s fees 68 and costs bears to the full value of the patient’s damages 69 multiplied by the amount of the attorney’s fees and costs. The 70 formula to calculate the pro rata share is illustrated 71 mathematically as follows: 72 73 hospital’s pro rata share = ((patient’s recovery - attorneys 74 fees and costs)/full value of patient’s damages) x attorney’s 75 fees and costs 76 77 (b)1. The reasonable charges due and owing to the hospital 78 may not include charges that the hospital would not be entitled 79 to recover in a direct action against the patient. 80 2. If the hospital’s charges are reduced as a result of an 81 agreement or contract between the hospital and a third-party 82 payor or state or federal law, the patient is entitled to pro 83 rata reduction in any copayment charges billed to the patient by 84 the hospital. 85 (3) DISPUTE RESOLUTION.— 86 (a) The hospital and the patient shall negotiate in good 87 faith in an attempt to obtain an equitable resolution if the 88 hospital and the patient disagree on: 89 1. The amount of the reasonable charges due and owing to 90 the hospital; or 91 2. Whether the patient’s attorney’s fees and costs 92 apportioned to the hospital pursuant to subsection (2) produce 93 an inequitable result. 94 (b) If the hospital and the patient fail to enter into an 95 agreement as the result of negotiations, a court may order 96 mediation of the disputed issues. If the hospital and the 97 patient fail to enter into an agreement as the result of 98 mediation, the court shall equitably distribute the proceeds of 99 the judgment or settlement, notwithstanding subsection (2). 100 (4) ATTACHEMENT AND WAIVER OF A LIEN.—A hospital may assert 101 a lien pursuant to this section at any time after it provides 102 services for which it is entitled by filing a verified written 103 claim with the clerk of the circuit court in the county in which 104 the hospital is located. However, a hospital waives any right to 105 assert a lien if it fails to record the lien within 30 days 106 after it receives a written notice of the patient’s intent to 107 seek damages from a tortfeasor. 108 (5) NOTICE OF INTENT TO SEEK DAMAGES.— 109 (a) A patient shall send a written notice of the patient’s 110 intent to seek damages from a tortfeasor to a hospital that 111 provided services subject to this section. The notice must be 112 sent by certified or registered mail. The notice also must state 113 that the hospital waives any right to a lien on the patient’s 114 recovery unless the hospital, within 30 days after receiving the 115 notice, provides the patient or the patient’s attorney with a 116 statement asserting the lien and setting forth the amount 117 claimed to be due and records a lien. 118 (b) If the patient has filed suit against the tortfeasor at 119 the time the notice is sent, the patient must send a copy of the 120 complaint against the tortfeasor along with the notice. 121 (6) DUTY TO COOPERATE.—A hospital claiming a lien under 122 this section must cooperate with the patient by producing the 123 information that is reasonably necessary for the patient to 124 prove the nature and extent of the value of the hospital 125 services provided. Notwithstanding subsections (1) through (5), 126 the failure of the hospital to comply with this duty to 127 cooperate may be taken into account by the court in determining 128 the right to or amount of a lien or in apportioning the 129 patient’s attorney’s fees and costs between the patient and the 130 hospital. 131 (7) EFFECT OF A RELEASE,SATISFACTION OF JUDGMENT, OR 132 SETTLEMENT.—A release, satisfaction of judgment, settlement, or 133 settlement agreement with a tortfeasor is not valid against a 134 lien created pursuant to this section unless the hospital joins 135 therein. A hospital that joins in the execution of a release, 136 satisfaction of judgment, settlement, or settlement agreement 137 releases the patient from all liability to pay the charges due 138 and owing to the hospital. 139 Section 2. This act is a general revision of the subject of 140 the entitlement of a hospital to a lien against a recovery from 141 a tortfeasor who caused or contributed to the need of an ill or 142 injured person to receive services from the hospital. The 143 provisions of this act supersede all other laws and preempt any 144 local ordinances on that subject. However, notwithstanding the 145 foregoing, those laws or ordinances shall continue to apply to 146 hospital liens asserted as the result of a cause of action 147 accruing against a tortfeasor before October 1, 2010. 148 Section 3. This act shall take effect October 1, 2010, and 149 applies to any hospital lien asserted as the result of a cause 150 of action accruing against a tortfeasor on or after that date.