What is a medical lien?

A medical lien is a legal document used in Alabama accident law that allows a hospital or other health care provider to place a lien on the proceeds of a settlement or judgment that results from an accident case. This means that the medical provider can take a portion of the settlement or judgment as payment for medical bills resulting from the accident. When an accident victim seeks medical attention, they likely sign documents at the time of service which include a lien. This lien is then filed with the court in the accident claim and the medical provider may then seek payment from the proceeds of the settlement. There are limits as to how much money a medical provider can seek through a lien in Alabama accident law. The amount of the lien is limited to the amount of money owed for medical services – no more and no less. Medical liens are also subject to negotiation, particularly when the parties involved want to avoid going to court. The parties may negotiate the amount of the lien, or they may agree to a payment plan in order to settle the matter. If a court rules that a medical lien is justified, the ruling will become part of the final judgement or settlement and the medical provider may then seek payment for their services.

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What is a medical lien?

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