H 3210 Session 112 (1997-1998)
H 3210 General Bill, By Seithel
A BILL TO AMEND TITLE 29, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO
MORTGAGES AND OTHER LIENS, TO ENACT THE "HEALTH CARE CLAIM RECOVERY ACT" BY
ADDING CHAPTER 17 SO AS TO PROVIDE FOR A LIEN FOR THE RECOVERY OF THE COST OF
MEDICAL SERVICES RENDERED AND TO PROVIDE PROCEDURES FOR PERFECTING,
CHALLENGING, AND ENFORCING THE LIEN.
01/08/97 House Prefiled
01/08/97 House Referred to Committee on Labor, Commerce and Industry
01/14/97 House Introduced and read first time HJ-81
01/14/97 House Referred to Committee on Labor, Commerce and
Industry HJ-81
A BILL
TO AMEND TITLE 29, CODE OF LAWS OF SOUTH
CAROLINA, 1976, RELATING TO MORTGAGES AND OTHER
LIENS, TO ENACT THE "HEALTH CARE CLAIM
RECOVERY ACT" BY ADDING CHAPTER 17 SO AS TO
PROVIDE FOR A LIEN FOR THE RECOVERY OF THE COST
OF MEDICAL SERVICES RENDERED AND TO PROVIDE
PROCEDURES FOR PERFECTING, CHALLENGING, AND
ENFORCING THE LIEN.
Be it enacted by the General Assembly of the State of South
Carolina:
SECTION 1. Title 29 of the 1976 Code is amended by adding:
"CHAPTER 17
Health Care Claim Recovery
Section 29-17-05. This chapter may be cited as the Health Care
Claim Recovery Act.
Section 29-17-10. A person who, or a corporation or governmental
entity which provides drugs, medical supplies, ambulance services,
or medical services as a physician, dentist, registered nurse, licensed
practical nurse, nursing home, or hospital is entitled to a lien upon the
sums recovered by the patient against third parties liable for damages
for personal injury or paid in compensation for or settlement of
personal injury, whether in litigation or otherwise. Where damages
are recovered for or on behalf of minors or incompetent persons, the
lien attaches to the sum recovered as fully as if the person were sui
juris. However, the subrogation interest of the Department of Health
and Human Services for Medicaid services set out in Title 43, Article
5, is superior to a lien filed under this section.
Section 29-17-20. (A) In order to perfect the lien provided for in
Section 29-17-10, an authorized agent of the person or entity seeking
a lien, within one year after the patient has been discharged from or
by the person or entity, must file in the office of the clerk of court of
the county in which the entity is located and in the county where the
patient resides, if a resident of this State, a verified statement of the
lien setting forth the:
(1) name and address of the patient;
(2) name and location of the entity;
(3) name and title of the agent, servant, or employee of the
person or entity in charge of the lien;
(4) date of admission and discharge of the patient;
(5) amount claimed to be due for medical care or services; and
(6) if known to the claimant, names and addresses of all
persons, firms, corporations, and other entities claimed by the patient
to be the entities liable for the damages arising from the injuries.
(B) To the extent known to the claimant, a copy of the lien must be
mailed to a person, firm, corporation, or entity claimed to be liable
for the damages. The claim also may be placed against the liable
third party, either directly with the liable third party or the patient's
representative.
Section 29-17-30. Each county clerk of court shall provide and
maintain a health care lien book with an appropriate index in which
the clerk shall enter the date and hour of the filing of a lien, the
names and addresses of the entity, the name of the patient, the
amount claimed, and the names of those claimed to be liable for the
damages. The clerk shall charge a ten dollar fee for each lien filed.
Section 29-17-40. (A) No release of the cause or causes of action
or of a judgment or of a covenant not to sue or bring an action is valid
or effectual against a lien created in Section 29-17-10 unless the
lienholder joins in the execution of the release, discharge, or
covenant. Upon failure of the parties to obtain a separate release of
the lien from the lienholder or to have the lienholder join in the
release, the lienholder may maintain an independent cause of action
to enforce the lien by an action against either the patient, attorney, or
the person, firm, corporation, or other entity liable for the damages.
The successful party in an action to enforce the lien after payment by
the claimant to the patient and release, discharge, or other covenant
is entitled to reasonable attorney's fees.
(B) No release or covenant not to bring an action which is made
within one year after the patient was discharged by the person from
the entity is valid against the lien perfected within one year as
provided in subsection (A), regardless of whether release, covenant
not to sue, settlement, or other discharge was made before the time of
the filing of the lien as provided in Section 29-17-20.
Section 29-17-50. A physician may take action against a
potentially liable third party to determine liability for injuries
sustained by a person or firm.
Section 29-17-60. In that a lien attaches upon all funds paid to a
person in compensation for settlement of personal injuries, it is the
duty of the person receiving the funds before disbursement to retain
from the recovery or compensation received a sufficient amount to
pay the just, reasonable, and bona fide claims for drugs, medical
supplies, ambulance, medical, and hospital services after having
received a copy of the lien or notice of the lien. These medical
expenses are to be paid before the distribution of other funds. Entry
of the lien and the date and hour of filing by the clerk of court in the
health care lien book or notification by certified mail by the person
or entity to the patient of the lien or to the attorney who represents
the patient is considered actual notice to the person receiving the
funds and charged with the disbursement.
Section 29-17-70. A person desiring to contest a lien or the
reasonableness of the charges may do so by filing a motion to quash
or reduce the lien in the circuit court of the county in which the lien
was perfected within the suit for personal injuries already pending
before the court or by an independent action for declaratory judgment
seeking reduction in release of the lien filed. The amount in dispute
must not be disbursed to the patient until the court determines the
reasonableness of the lien. If charges by a physician are found to be
`unreasonable', the money must be returned to the insurance company
or liable third party in the amount of the medical expenses times the
multiplier used to calculate the settlement cost. The `unreasonable'
charges may not be retained by the patient or the attorney.
Section 29-17-80. Patients are entitled to collect only one time for
the same medical expenses. Where there is more than one liable
party, payment must be coordinated.
Section 29-17-90. If a liable third party has determined payment
for medical services to be appropriate, the liable third party may
release funds payable for medical services directly to the provider of
medical services without release from the patient.
Section 29-17-100. Nothing in this chapter may be construed to
prevent the hospital or health care provider from pursuing its legal
remedies against the patient including, but not limited to, an action
for breach of contract."
SECTION 2. This act takes effect upon approval by the Governor.
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