HB 11

Relating to hospitals; to amend Sections 35-11-371 and 35-11-372, Code of Alabama 1975, to require a hospital that provides medical treatment to an injured person to seek compensation solely from that person's health insurance provider, with the exception of approved copayments and deductibles, unless certain circumstances apply; and to allow a hospital to perfect a hospital lien against any recovery the injured person may be awarded for injuries by way of settlement or judgment in certain circumstances.

Section 1

Sections 35-11-370, 35-11-371, 35-11-372, 35-11-373, 35-11-374, and 35-11-375, Code of Alabama 1975, are amended to read as follows:

§35-11-370.

(a) In this division, the term "hospital" includes any person, firm, authority, company, corporation, or legal representative who acts on behalf of a hospital.

(b) Except as otherwise provided in this section, a hospital shall seek compensation for hospital care, treatment, or maintenance of an injured person solely from the injured person's health insurance provider and not from the injured person, except for approved copayments and deductibles.

(c) Except as otherwise provided in this section, a hospital may not assert a lien on charges for hospital care, treatment, or maintenance of an injured person if the services provided by the hospital are covered by health insurance or workers' compensation, except with regard to insurance copayments or insurance deductibles owed to the hospital by the injured person and comporting with the contractual terms of the injured person's health insurance plan.

(d) Any person, firm, hospital authority, or corporation operating a A hospital in this state shall have may assert a lien for all reasonable charges for hospital care, treatment, and maintenance of an injured person who upon any judgment or settlement which that person, or that person's heir, may receive in relation to costs or damages sustained as a result of the injurious event for which that person required medical treatment, provided the person entered such the hospital within one week after receiving such the injuries, upon any and all actions, claims, counterclaims, and demands accruing to the person to whom such care, treatment, or maintenance was furnished, or accruing to the legal representatives of such person, and upon all judgments, settlements, and settlement agreements entered into by virtue thereof on account of injuries giving rise to such actions, claims, counterclaims, demands, judgments, settlements, or settlement agreements and which necessitated such hospital care, subject, however, to any attorney's lien. and one of the following is true:

(1) The injured person has no health insurance.

(2) The injured person's health insurance provider denied coverage.

(3) The injured person's health insurance provider did not pay the hospital within 180 days after the day on which the hospital submitted the bill to the health insurance provider.

(e) A lien asserted by a hospital due to nonpayment by a health insurance provider under subsection (d) shall be withdrawn when the private health insurer pays either of the following:

(1) The amount stipulated by the hospital's contract with the injured person's health insurance provider.

(2) The amount agreed to by the health insurance provider and the hospital in the event the hospital and the injured person's health insurance provider have no contract.

§35-11-371.

(a) In order to To perfect such a lien the operator of such , a hospital, before or within 10 days after such person shall have been discharged therefrom shall file in the office of the judge of probate of the county or counties in which such cause of action arose a verified statement setting forth in the office of the judge of probate of the county or counties where the cause of action arose, within 10 days of the patient's discharge from the hospital, which includes all of the following:

(1) the The name and address of such the patient, as it shall appear on the as appearing on hospital records of such the hospital,.

(2) the The name and location of such the hospital.

(3) and the name and address of the operator thereof, the The dates of admission and discharge of such the patient therefrom,.

(4) the The amount claimed to be the hospital claims is due for such hospital care,.

(5) and to To the best of claimant's the hospital's knowledge, the names and addresses of all persons, firms, or corporations claimed by such the injured person, or the injured person's legal representative of such person, to be liable for damages arising from such the injuries;.

(b) such claimant shall also within Within one day after the filing of such a claim or lien, the hospital shall mail send a copy thereof of the claim or lien by registered or certified mail, postage prepaid, for to each person, firm, or corporation so claimed to be liable on account of such for the injuries, at the addresses so given in such statement, and to the patient, his the patient's guardian, or his the patient's personal representative at the address given at the time of admission. The filing of such the claim or lien shall be constitute notice thereof to all persons, firms, or corporations liable for such damages whether or not they are named in such the claim or lien.

(b)(c) The judge of probate shall endorse thereon record the date and hour time of filing on the filed copy, and at the expense of the county shall provide a hospital lien book with proper index in which he shall enter the date and hour time of such the filing, the names and addresses of such the hospital, the its operators thereof, and of such the patient, the amount claimed, and the names and addresses of those claimed to be liable for damages into an indexed hospital lien book. Such This information shall be recorded in the name of the patient. The judge of probate shall be paid $1.00 as his a reasonable filing fee, set by the judge of probate for such filing.

§35-11-372.

(a) During the period of time allowed by Section 35-11-371 for perfecting the lien provided for by this division, and also after the lien provided for by this division has been perfected, as provided in this division, by any entitled lienholder entitled thereto, no release or satisfaction of any action, claim, counterclaim, demand, judgment, settlement, or settlement agreement, or of any of them, shall be valid or effectual as against such the lien unless such the lienholder shall join therein or execute executes a release of such the lien.

(b) Any acceptance of a release or satisfaction of any such an action, claim, counterclaim, demand, or judgment, and any settlement of any of the foregoing in the absence of a release or satisfaction of the lien referred to in this division shall prima facie constitute an impairment of such the lien, and the lienholder shall be entitled to a civil action for damages on account of such the impairment,.

(c) and in such In a civil action provided for by subsection (b), a lienholder may recover the reasonable cost of the hospital care, treatment, and maintenance provided to a person from the one person who received the treatment or a person accepting such release or satisfaction the settlement or judgment or making such the settlement the reasonable cost of such hospital care, treatment and maintenance on that person's behalf. Satisfaction of any a judgment rendered in favor of the lienholder in any such an action as provided for by this section shall operate as constitute a satisfaction of the lien. Any action by the lienholder The action shall be brought in any a court having jurisdiction thereof and may be brought and maintained in the county wherein the lienholder has his, its, or their where the lienholder's residence or place of business is located. If the lienholder shall prevail in such action, the lienholder The prevailing party shall be entitled to recover from the defendant, costs and reasonable attorney's fees from the nonprevailing party. Such The action shall be commenced against the person liable for such damages within one year after the date such liability shall be finally determined by a of the settlement release covenant not to sue or by the judgment of a court of competent jurisdiction.

§35-11-373.

(a) In any case where the a court enters a judgment regarding an action, claim, counterclaim or demand accruing to the person to whom hospital care has been furnished has been reduced to judgment in a court having jurisdiction thereof, said in favor of a person who has received hospital care, the court shall have full jurisdiction to determine the amount due on the lien on upon proper written petition by any party interested therein interested party and shall have full power to adjudicate all matters in connection with said the hospital lien and. A copy of the petition shall be served on any party possessing a right to any part of the judgment proceeds. Any party listed on the petition shall have a right of appeal to the Supreme Court or the Court of Civil Appeals.

(b) A court entering a judgment pursuant to subsection (a) shall also have the authority to provide by order of the court for the manner in which issue court orders dictating how the proceeds of said judgment proceeds shall be distributed. A copy of said petition shall be served upon all other parties having any right to any part of the proceeds of said judgment and answer and proceedings thereon filed and conducted as provided by law. Any party to the proceedings on said petition shall have the right to appeal to the supreme court or court of civil appeals as in civil cases.

§35-11-374.

The provisions of this This division shall not apply to any moneys becoming due under the Workmen's Compensation Act.

§35-11-375.

This division shall not be construed as giving to give any hospital or agency referred to in this division an independent right of action to determine liability for injuries sustained by a person or firm."

Section 2

This act shall become effective on the first day of the third month following its passage and approval by the Governor, or its otherwise becoming law.