Florida Senate - 2024 SB 1592 By Senator Berman 26-01679-24 20241592__ 1 A bill to be entitled 2 An act relating to liens to recover charges for health 3 care services; creating a new part IV of ch. 713, 4 F.S., relating to health care services liens; creating 5 s. 713.826, F.S.; providing a short title; creating s. 6 713.827, F.S.; providing that physicians and 7 chiropractors who provide services to an individual 8 injured as a result of the negligent act of another 9 have a lien for the amount due for such services 10 against any amount recovered by the injured individual 11 in a civil action filed against the individual who 12 caused the injury; providing that such liens are 13 inferior to certain liens or claims; providing a lien 14 is deemed timely if the physician or chiropractor 15 submits to the attorney of the injured individual an 16 itemized statement; providing such a statement is 17 admissible at trial or in negotiating a settlement; 18 requiring the physician or chiropractor to present to 19 the attorney written notice of lien specifying the 20 total amount requested; creating s. 713.828, F.S.; 21 providing for attachment of a lien on all funds from a 22 settlement or judgement in the civil action; requiring 23 that an amount sufficient to pay liens be set aside 24 before disbursement of such funds; providing that 25 certain records are admissible in certain proceedings; 26 requiring lienholders to share, on a pro rata basis, 27 the total amount available for liens if the total 28 amount of the lien exceeds a certain percentage; 29 defining the term “net proceeds”; providing that the 30 injured individual’s instructions regarding 31 disbursement of funds is not binding on the person 32 charged with disbursing them; providing construction; 33 creating s. 713.829, F.S.; requiring that persons 34 disbursing funds provide to the lienholder a 35 certification with sufficient information to 36 demonstrate that the distribution complies with 37 specified requirements, under certain circumstances; 38 providing that the provision of specified information 39 to a lienholder does not constitute a breach of the 40 attorney-client privilege; providing requirements for 41 the certification; providing construction; providing 42 for the enforcement of liens; requiring that actions 43 for enforcement of liens be brought within a specified 44 timeframe; providing for the awarding of attorney fees 45 and costs in connection with certain disputes; 46 creating s. 713.831, F.S.; requiring that any lien 47 claim be fully determined before payment if the amount 48 is in dispute; providing an effective date. 49 50 Be It Enacted by the Legislature of the State of Florida: 51 52 Section 1. Present part IV of chapter 713, Florida 53 Statutes, is redesignated as part V, and a new part IV is 54 created, consisting of ss. 713.827-713.831, Florida Statutes, 55 entitled “Health Care Services Liens.” 56 Section 2. Section 713.826, Florida Statutes, is created to 57 read: 58 713.826 Short title.—Sections 713.827-713.831 may be cited 59 as the “Health Care Services Lien Act.” 60 Section 3. Section 713.827, Florida Statutes, is created to 61 read: 62 713.827 Liens for physician and chiropractic services.— 63 (1) A physician licensed under chapter 458 or chapter 459 64 or a chiropractor licensed under chapter 460 who provides 65 services within his or her scope of practice to an individual 66 injured as a result of the negligent act of another, subject to 67 compliance with subsection (2), has a lien for the amount due 68 for such services rendered to the injured individual against any 69 amount recovered by that individual, or his or her heirs, 70 personal representative, or next of kin, in a civil action filed 71 against the individual who caused the injury. Such lien is 72 inferior to any lien or claim of an attorney representing the 73 injured individual. When damages are recovered for and on behalf 74 of minors, the lien attaches to the sum recovered as if the 75 individual were of the age of majority. 76 (2) A lien under this section is contingent upon timely 77 submission by the physician or the chiropractor, as applicable, 78 to the attorney representing the injured individual in such 79 civil action of an itemized statement for services provided, 80 which the attorney may use at trial or in negotiating a 81 settlement. Upon presenting such an itemized statement, the 82 physician or chiropractor, as applicable, shall present to the 83 attorney a written notice of lien under this section, which must 84 specify the total amount sought by the physician. 85 Section 4. Section 713.828, Florida Statutes, is created to 86 read: 87 713.828 Receiving person charged with duty of retaining 88 funds; evidence; attorney fees; charges.— 89 (1) A lien under s. 713.827 attaches upon all funds paid to 90 any person in compensation for or settlement of the claim for 91 injury, whether in litigation or otherwise. If an attorney 92 represents the injured individual, the lien is perfected once 93 served upon an injured individual’s attorney as provided under. 94 s. 713.827. 95 (2) Prior to disbursement of funds recovered by or on 96 behalf of the injured individual, an amount sufficient to 97 satisfy the lien under s. 713.827 must be set aside. Evidence as 98 to the amounts for any treatment, supplies, or services rendered 99 is admissible during the pendency of the proceedings. 100 (3) If the lien for physician or chiropractic services is 101 for 60 percent or more of the total amount recovered by or on 102 behalf of the injured individual, each physician or chiropractor 103 who holds a lien must proportionately share an amount equal to 104 60 percent of the net proceeds, based on the amount of his or 105 her lien as a percentage of the total amount of liens. For 106 purposes of this subsection, the term “net proceeds” means the 107 amount remaining after the payment of contractual attorney fees 108 in connection with the civil action. All costs incurred by the 109 injured individual may not reduce the amount of the lien and 110 must be paid by the injured person. 111 (4) Except as otherwise provided in this act, an injured 112 individual’s instruction for the disbursement of settlement or 113 judgment proceeds is not binding on the attorney disbursing the 114 proceeds to the extent that the injured individual’s 115 instructions conflict with this act. 116 (5) This section may not be construed to interfere with any 117 amount contractually due for attorney fees. 118 Section 5. Section 713.829, Florida Statutes, is created to 119 read: 120 713.829 Accounting of disbursements; enforcement of lien 121 rights.— 122 (1) Notwithstanding any confidentiality agreement entered 123 into between the injured individual and the payor of proceeds as 124 settlement of compensation for injuries, upon the written 125 request for payment and the executed confidentiality agreement, 126 a person distributing funds to a lienholder under this act in an 127 amount less than the amount claimed by the lienholder shall 128 provide to that lienholder a certification with sufficient 129 information to demonstrate that the distribution was pro rata 130 and consistent with s. 713.828(3). If the person distributing 131 settlement or judgment proceeds is an attorney, the 132 certification required by this subsection does not constitute a 133 breach of the attorney-client privilege. 134 (2) The certification required under subsection (1) must 135 include a statement of all of the following: 136 (a) The total amount of the settlement. 137 (b) The total distribution to lienholders, the amount of 138 each lien claimed, and the percentage of each lien paid, if not 139 paid in full. 140 (c) The total amount of attorney fees. 141 (3) This act may not be construed to require any person to 142 act contrary to the requirements of the Health Insurance 143 Portability and Accountability Act of 1996, Pub. L. No. 104-191, 144 and rules adopted pursuant to this act. 145 (4) A lien under s. 713.827 may be enforced by civil action 146 in the jurisdiction where the lien was filed. Such action must 147 be brought within 1 year after the lienholder becomes aware of 148 final judgment, settlement, or compromise of the claim asserted 149 or maintained by or on behalf of the injured individual. With 150 respect to any dispute under this act between the lienor and the 151 lienholder, or between an assignee of a lienholder and lienor, 152 the prevailing party must be awarded reasonable attorney fees 153 and costs. 154 Section 6. Section 713.831, Florida Statutes, is created to 155 read: 156 713.831 Disputed claims to be established before payment. 157 If the amount demanded for health care or medical services is in 158 dispute, payment may not be compelled until the claim is fully 159 determined. Liens under s. 713.827 may be enforced as provided 160 in s. 713.829(4). 161 Section 7. This act shall take effect July 1, 2024.