HB316 Alabama 2016 Session

Summary

Primary Sponsor

Ron Johnson

Republican

Session

Regular Session 2016

Title

Health care services, damage claims, recovery in civil actions, lien in favor of health care providers under certain conditions, manner of filing and perfecting

Summary

HB316 creates a Health Care Services Lien allowing health care providers to place a lien on damages recovered in personal injury lawsuits to cover care provided.

What This Bill Does

The bill lets health care professionals and providers file a lien on the damages recovered in a civil action for personal injury to be paid for health care services they rendered. The lien can cover drugs, medical supplies, devices, ambulance services, and professional care, but may not exceed 50% of the verdict, judgment, award, or settlement after attorneys’ fees, with multiple liens shared proportionally. The lien attaches to settlement funds and must be satisfied before extended payments (like annuities); providers must give written notice to the injured person’s attorney and may request an itemized medical report upon request.

Who It Affects

• Health care professionals and providers (e.g., physicians, hospitals, home health agencies, durable medical equipment providers) who may file and collect liens on damages recovered in personal injury cases to cover their services.
• Injured persons and their attorneys, whose recoveries or settlements may be reduced by liens; they must receive notice, work with lienholders on distributions, and ensure compliance with the act's requirements.

Key Provisions

• Creates the Health Care Services Lien on damages recovered in personal injury civil actions to cover health care services rendered to the plaintiff.
• Defines who counts as a Health Care Professional and a Health Care Provider for the purposes of the lien.
• Lien applies to drugs, medical supplies, devices, ambulance services, and professional services, with a cap of 50% of the verdict/award/settlement after attorneys' fees; liens are prorated if more than one provider has a lien.
• Requires written notice to the plaintiff's attorney and, upon request, an itemized medical report; lien notices must include specific identifying information and be served properly.
• Lien attaches to all funds paid in compensation or settlement; if the lien is perfected before disbursement, funds must be retained to pay the lien; does not interfere with Workers' Compensation.
• Disbursement instructions conflicting with the act may be overridden; before final satisfaction, the injured person or authorized representative must notify lienholders, who must be paid first to the extent permitted.
• Allows accounting/certification to show pro rata distribution of settlements to lienholders, while protecting confidentiality and attorney-client privilege where applicable.
• Does not affect subrogation rights or the right to pursue other charges for services, and permits lienholders to seek remaining reasonable charges after lien satisfaction.
• Effective date is three months after the governor signs or the measure becomes law.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Civil Procedure