S 0548 General Bill, By Land

Similar(H 4028)
 A BILL TO AMEND TITLE 44, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO
 HEALTH, BY ADDING CHAPTER 127 SO AS TO ENACT THE "SOUTH CAROLINA HEALTH CARE
 LIEN ACT", THEREBY ALLOWING A HEALTH CARE PROVIDER TO BE ENTITLED TO A LIEN
 EQUAL TO THE UNPAID BALANCE DUE THE PROVIDER FOR THE RENDERING OF HEALTH CARE
 SERVICES.

   03/02/99  Senate Introduced and read first time SJ-7
   03/02/99  Senate Referred to Committee on Medical Affairs SJ-7

TO AMEND TITLE 44, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO HEALTH, BY ADDING CHAPTER 127 SO AS TO ENACT THE "SOUTH CAROLINA HEALTH CARE LIEN ACT", THEREBY ALLOWING A HEALTH CARE PROVIDER TO BE ENTITLED TO A LIEN EQUAL TO THE UNPAID BALANCE DUE THE PROVIDER FOR THE RENDERING OF HEALTH CARE SERVICES.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1. Title 44 of the 1976 Code is amended by adding:

Health Care Liens

Section 44-127-10. This chapter shall be know, and may be cited, as the 'South Carolina Health Care Lien Act.'

Section 44-127-20. As used in this chapter:

(1) 'Health care provider' means a person, corporation, or governmental entity which provides health care services and includes, but is not limited to, a chiropractor, physician, physician's assistant, dentist, pharmacist, registered nurse, licensed practical nurse, optometrist, paramedic, or hospital, including general and specialized hospitals.

(2) 'Health care services' means furnishing an individual with medical or dental care or treatment, medical supplies, medications, ambulance services, or any other service rendered by a health care provider intended to improve the physical or mental health of the patient or to prevent, alleviate, cure, or heal human illness, injury, or physical injury.

(3) 'Patient' means the individual who receives health care services.

(4) 'Release' includes a general release of liability, covenant not to sue, or any other agreement by the patient or the patient's representative, to discharge from liability or waive enforcement of any judgment against a third party, and includes any such agreement regardless of an admission of liability on behalf of the third party.

(5) 'Third party' means a person, surety, insurance company, or other entity which pays or agrees to pay any sum to the patient as compensation for the personal injury for which the patient received health care services.

Section 44-127-30. Upon compliance with the provisions of this chapter any health care provider shall be entitled to a lien equal to the unpaid balance due the health care provider for provision of health care services. The lien shall attach to any funds paid or agreed to be paid by a third party, or a representative of the third party, to the patient as compensation for , or in settlement of, any claims the patient may have against the third party for the injuries for which the patient received health care services.

Section 44-127-40. Subject to the notice provisions of Section 37-5-117, a health care provider seeking to perfect a lien pursuant to this chapter shall, no later than ninety days after commencement of the provision of health care services:

(1) give written notice to the patient informing the patient that any sum the patient receives from a third party as compensation for the injuries for which the health care services were provided is subject to a lien under this chapter;

(2) give written notice to the third party, if known by the health care provider, that any sum paid to the patient as compensation or in settlement of claims arising out of the injury for which the patient received health care services is subject to a lien under this chapter; and

(3) give written notice to any insurance company or other surety who provides insurance coverage on behalf of the third party that any sum paid to the patient as compensation or in settlement of claims arising out of the injury for which the patient received health care services is subject to a lien under this chapter.

Section 44-127-50. The written notice required by Section 44-127-40 shall contain, at a minimum, the following:

(1) the name and address of the patient as it appears in the records of the health care provider;

(2) the name and location of the health care provider asserting the lien;

(3) the name and title of the agent or employee of the health care provider responsible for administering the patient's account related to the lien;

(4) the date of commencement of health care services;

(5) if know to the health care provider, the name and address of any person, firm, corporation, or other entity claimed by the patient to be responsible for the injuries for which health care services were provided.

Section 44-127-60. Subject to the provisions of Article 5, Chapter 7 of Title 43, the lien provided for in this chapter shall arise regardless of whether the patient executes an assignment to the health care provider of amounts claimed against the third party.

Section 44-127-70. Any lien arising under this chapter is subordinate to the subrogation interests of the state Medicaid agency pursuant to Section 43-7-440 and the lien created in favor of the Department of Mental Health pursuant to 44-23-1140. Otherwise, all liens arising and perfected pursuant to this chapter shall have equal priority, regardless of the time of the treatment or notice of lien. If the patient recovers an amount from a third party in settlement or discharge of a claim for the injuries for which health care services were provided, and the amount recovered is insufficient to satisfy all liens arising under this chapter, then each health care provider asserting a lien shall be entitled to enforce the lien against the proceeds in the proportion which the health care provider's lien bears to the total amount of all health care liens perfected under this chapter. In no event shall the total amount of all liens exceed two-thirds of the amount recovered from the third party, so that the patient is entitled to receive no less than one-third of the amount paid by the third party, or representative of the third party, after payment of all interests asserted under this chapter. Any interested party may bring an action to determine the proper apportionment of the recovery from a third party or representative of the third party among the patient and all health care providers who have asserted a perfected lien pursuant to this chapter.

Section 44-127-80. Any lien created and perfected pursuant to this chapter shall not be affected by any release of liability or cause of action, covenant not to sue, or any other purported discharge or release of the third party or representative acting on behalf of the third party, unless the health care provider joins in the release, covenant not to sue, or discharge and executes a written release of the lien. The release of lien shall contain the information required for a notice of lien under Section 44-127-50. If a third party, or representative acting on behalf of the third party, after receiving the notice of lien pursuant to this chapter, pays any amount solely to the patient in order to settle or discharge any claim the patient may have against the third party for the injuries for which health care services were provided, without first obtaining the release of lien required by this section, the health care provider shall have an independent right of action against the third party, or representative acting on behalf of the third party, to recover an amount equal to the lien. No independent action pursuant to this section shall be brought more than three years after the third party or representative of the third party has paid the funds directly to the patient.

Section 44-127-90. Any health care provider who has obtained and perfected a lien pursuant to this chapter may bring an action against the patient to enforce the lien against the proceeds of any sums received from a third party or representative of the third party in settlement or compromise of any claims for damages for the injuries for which health care services were rendered. The action shall be brought in the county in which the health care services were provided or in the county in which the patient resides at the time the action is commenced, at the option of the health care provider. If the patient is not a resident of this State, the action shall be brought in the county where the health care services were rendered. Any person asserting an interest in the proceeds by virtue of a perfected lien or subrogation right shall be joined as a party to the action if available and subject to process. The prevailing party in the action shall be entitled to recovery of costs, including a reasonable attorney's fee to be determined by the court. No action to enforce the lien created by this chapter may be brought more than three years after the patient receives any sum from the third party, or representative of the third party, to release all claims.

Section 44-127-100. The remedies provided by this chapter are in addition to other remedies a health care provider may have at law or in equity. Nothing in this chapter shall be construed to affect the right of the health care provider to pursue any remedies the health care provider may have at law or in equity against the patient to recover for payment of health care services provided to the patient. The health care provider may pursue its remedy pursuant to this chapter without first pursuing an action to collect the amount directly against the patient.

Section 44-127-110. Any interested person desiring to contest a lien perfected pursuant to this chapter may seek a declaration as to the validity or amount of any lien asserted under this chapter. The declaration may be sought by intervention into any action already pending for recovery of damages for the injuries giving rise to the health care services or, if no such action is pending, by bringing an independent action for declaratory judgment in the county in which the patient received health care services giving rise to the challenged lien or in the county in which the patient resides at the time the action is commenced. If the patient is not a resident of this State, the action shall be brought in the county in which the health care services giving rise to the challenged lien were rendered. The court in a non-jury action may then determine the validity of the lien under this chapter.

Section 44-127-120. If the health care provider receives notice that the patient is represented by an attorney on the date the patient received any funds from a third party in settlement or discharge of any claim against the third party for the injuries for which the patient received health care services, the health care provider shall not be entitled to assert or perfect a lien pursuant to the provisions of this chapter. The health care provider may give written notice to the patient's attorney of the provision of health care services and may seek an agreement for protection for payment of services, subject to applicable law and rules of court."

SECTION 2. This act takes effect upon approval by the Governor.