Title: Liens to Recover Charges for Health Care Services

Summary: Creating the "Health Care Services Lien Act"; providing that physicians and chiropractors who provide services to an individual injured as a result of the negligent act of another have a lien for the amount due for such services against any amount recovered by the injured individual in a civil action filed against the individual who caused the injury; providing that such liens are inferior to certain liens or claims; providing such a statement is admissible at trial or in negotiating a settlement, etc.

Full Text:
An act relating to liens to recover charges for health care services; creating a new part IV of ch. 713, F.S., relating to health care services liens; creating s. 713.826, F.S.; providing a short title; creating s. 713.827, F.S.; providing that physicians and chiropractors who provide services to an individual injured as a result of the negligent act of another have a lien for the amount due for such services against any amount recovered by the injured individual in a civil action filed against the individual who caused the injury; providing that such liens are inferior to certain liens or claims; providing a lien is deemed timely if the physician or chiropractor submits to the attorney of the injured individual an itemized statement; providing such a statement is admissible at trial or in negotiating a settlement; requiring the physician or chiropractor to present to the attorney written notice of lien specifying the total amount requested; creating s. 713.828, F.S.; providing for attachment of a lien on all funds from a settlement or judgement in the civil action; requiring that an amount sufficient to pay liens be set aside before disbursement of such funds; providing that certain records are admissible in certain proceedings; requiring lienholders to share, on a pro rata basis, the total amount available for liens if the total amount of the lien exceeds a certain percentage; defining the term  net proceeds ; providing that the injured individual s instructions regarding disbursement of funds is not binding on the person charged with disbursing them; providing construction; creating s. 713.829, F.S.; requiring that persons disbursing funds provide to the lienholder a certification with sufficient information to demonstrate that the distribution complies with specified requirements, under certain circumstances; providing that the provision of specified information to a lienholder does not constitute a breach of the attorney-client privilege; providing requirements for the certification; providing construction; providing for the enforcement of liens; requiring that actions for enforcement of liens be brought within a specified timeframe; providing for the awarding of attorney fees and costs in connection with certain disputes; creating s. 713.831, F.S.; requiring that any lien claim be fully determined before payment if the amount is in dispute; providing an effective date. Be It Enacted by the Legislature of the State of Florida: Section 1.  Present part IV of chapter 713, Florida Statutes, is redesignated as part V, and a new part IV is created, consisting of ss. 713.827-713.831, Florida Statutes, entitled  H ealth Care Services Liens.   Section 2. Section 713.826, Florida Statutes, is created to read: 713.826 Sho rt title.  Sections 713.82 7-713.831 may be cited as the   Health Care Services Lien Act.  Section 3. Section 713.827, Florida Statutes, is created to read: 713.827   Liens for physician and chiropractic services.  (1)   A physician licensed under chapter or chapter or a chiropractor licensed under chapter who provides services within his or her scope of practice to an individual injured as a result of the negligent act of another, subject to compliance with subsection (2), has a lien for the amount due for such services rendered to the injured individual against any amount recovered by that individual, or his or her heirs, personal representative, or next of kin, in a civil action filed against the individual who caused the injury. Such lien is inferior to any lien or claim of an attorney representing the injured individual. When damages are recovered for and on behalf of minors, the lien attaches to the sum recovered as if the individual were of the age of majority. (2) A lien under this section is contingent upon timely submission by the physician or the chiropractor, as applicable, to the attorney representing the injured individual in such civil action of an itemized statement for services provided, which the attorney may use at trial or in negotiating a settlement. Upon presenting such an itemized statement, the physician or chiropractor, as applicable, shall present to the attorney a written notice of lien under this section, which must specify the total amount sought by the physician. Section 4. Section 713.828, Florida Statutes, is created to read: 713.828   Receiving person charged with duty of retaining funds; evidence; attorney fees; charges.  (1) A lien under s. 713.827 attaches upon all funds paid to any person in compensation for or settlement of the claim for injury, whether in litigation or otherwise. If an attorney represents the injured individual, the lien is perfected once served upon an injured individual s attorney as provided under. s. 713.827. (2) Prior to disbursement of funds recovered by or on behalf of the injured individual, an amount sufficient to satisfy the lien under s. 713.827 must be set aside. Evidence as to the amounts for any treatment, supplies, or services rendered is admissible during the pendency of the proceedings. (3) If the lien for physician or chiropractic services is for percent or more of the total amount recovered by or on behalf of the injured individual, each physician or chiropractor who holds a lien must proportionately share an amount equal to percent of the net proceeds, based on the amount of his or her lien as a percentage of the total amount of liens. For purposes of this subsection, the term  net proceeds  means the amount remaining after the payment of contractual attorney fees in connection with the civil action. All costs incurred by the injured individual may not reduce the amount of the lien and must be paid by the injured person. (4) Except as otherwise provided in this act, an injured individual s instruction for the disbursement of settlement or judgment proceeds is not binding on the attorney disbursing the proceeds to the extent that the injured individual s instructions conflict with this act. (5) This section may not be construed to interfere with any amount contractually due for attorney fees. Section 5. Section 713.829, Florida Statutes, is created to read: 713.829   Accounting of disbursements; enforcement of lien rights.  (1) Notwithstanding any confidentiality agreement entered into between the injured individual and the payor of proceeds as settlement of compensation for injuries, upon the written request for payment and the executed confidentiality agreement, a person distributing funds to a lienholder under this act in an amount less than the amount claimed by the lienholder shall provide to that lienholder a certification with sufficient information to demonstrate that the distribution was pro rata and consistent with s. 713.828(3). If the person distributing settlement or judgment proceeds is an attorney, the certification required by this subsection does not constitute a breach of the attorney-client privilege. (2) The certification required under subsection (1) must include a statement of all of the following: (a) The total amount of the settlement. (b) The total distribution to lienholders, the amount of each lien claimed, and the percentage of each lien paid, if not paid in full. (c) The total amount of attorney fees. (3) This act may not be construed to require any person to act contrary to the requirements of the Health Insurance Portability and Accountability Act of 1996, Pub. L. No. 104-191, and rules adopted pursuant to this act. (4) A lien under s. 713.827 may be enforced by civil action in the jurisdiction where the lien was filed. Such action must be brought within year after the lienholder becomes aware of final judgment, settlement, or compromise of the claim asserted or maintained by or on behalf of the injured individual. With respect to any dispute under this act between the lienor and the lienholder, or between an assignee of a lienholder and lienor, the prevailing party must be awarded reasonable attorney fees and costs. Section 6. Section 713.831, Florida Statutes, is created to read: 713.831   Disputed claims to be established before payment. If the amount demanded for health care or medical services is in dispute, payment may not be compelled until the claim is fully determined. Liens under s. 713.827 may be enforced as provided in s. 713.829(4). Section 7. This act shall take effect July 1, 2024.