Texas Property Code Chapter 55 gives a hospital a lien on an injury claim when the patient was admitted within 72 hours after an accident caused by someone else’s negligence. The lien is limited, including to 50 percent of the recovery, and must be resolved before a release is valid. Owsley Law Firm handles liens as part of every settlement and charges no fee unless we win.
After a serious crash, a hospital may file a lien that attaches to your injury claim. Insurers know about these liens and will not pay a settlement that ignores them. Handling the lien correctly can change how much money reaches you.
This page explains when a hospital lien attaches, what it covers, the limits on its amount, and how it is secured and released.
When does a hospital lien attach in Texas?
When a person injured in an accident attributed to someone else’s negligence is admitted to a hospital within 72 hours after the accident.
Hospitals sometimes file liens for amounts that exceed what they can actually claim, or after missing a required step. A careful review compares the lien to the admission date, the itemized charges for the first 100 days, and the 50 percent limit. Errors found in that review often reduce the amount that must be paid from the settlement.
The lien extends to the admitting hospital and to a hospital the patient is transferred to for the same injury. In counties of 800,000 or fewer people, emergency medical services providers can also have a lien if services were provided within 72 hours.
What does a hospital lien attach to?
The injury claim, any judgment, and settlement proceeds, but not workers’ compensation claims or most insurance policies owned by the injured person.
The lien does not attach to the injured person’s own insurance proceeds except public liability insurance carried by the insured. It also does not attach to real property.
How much can a Texas hospital lien be?
The lesser of the hospital’s charges for the first 100 days, 50 percent of the recovery, or, if a jury specifies hospital charges, that amount minus a pro rata share of attorney’s fees and expenses.
The lien can also include a physician’s reasonable and necessary emergency care charges for the first seven days of hospitalization.
- Charges for the first 100 days
- 50 percent of the recovery
- The jury’s hospital charge award less a share of fees
- Plus certain physician emergency charges in the first 7 days
How does a hospital secure its lien?
By filing written notice with the county clerk before money is paid, and mailing notice to the patient after recording.
The notice must include the patient’s name and address, the accident date, the hospital’s name and location, and the name of the person alleged to be liable, if known.
Does a hospital lien attach to a wrongful death claim?
The lien can attach to a claim, judgment, or settlement brought by a person entitled to sue after the injured person’s death.
Section 55.003 includes proceedings and settlements by another person entitled to bring suit in case of death. Families resolving a wrongful death or survival claim should expect a hospital lien if the person was admitted within 72 hours after the crash.
As in injury cases, the amount limits and filing requirements apply and should be checked before paying.
Why does the lien matter at settlement?
A release is not valid unless the lien is paid, paid to the extent of the consideration, or the hospital is a party to the release.
This is why settlements in injury cases often include lien negotiation. Errors in the hospital’s filing, the 72-hour requirement, or the amount can reduce what is owed.
How it is proven after a crash
- The recorded lien notice from the county clerk
- Hospital admission records and timing
- Itemized hospital bills
- The settlement or judgment amount
- Any physician emergency charges claimed
Mistakes that cost people money
- Signing a release without resolving the lien
- Not checking the 72-hour admission requirement
- Paying the full lien without reviewing the limits
- Ignoring a lien notice in the mail
Frequently asked questions
Can a hospital take my whole settlement?
No. A hospital lien is limited, including to 50 percent of the amount recovered, under section 55.004.
Does a hospital lien apply if I was not admitted?
The hospital lien requires admission within 72 hours after the accident.
Does the lien attach to my own insurance?
Generally no, except public liability insurance the insured carried.
Can a hospital lien be negotiated?
Often. The filing, timing, and charges are reviewed for errors and limits.
How long do I have to file my injury claim?
Generally two years from the crash under section 16.003.
This page is general information about Texas law and is not legal or medical advice. Every case depends on its own facts. Contact the firm for a free review of yours.
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