How is a hospital lien paid if the insurance company has already paid the injured party the money?

UPDATED: Jan 4, 2011

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How is a hospital lien paid if the insurance company has already paid the injured party the money?

I was in a car accident and the other party was at fault. The other party’s insurance company paid me the settlement. Now, the hospital in which I was treated at is filing a lien. How can I go about paying them, and is it possible that it can be paid in installments?

Asked on January 4, 2011 under Bankruptcy Law, Illinois


M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

Listen, you can call up the hopital billing department and discuss a few different options.  You can ask to pay in installments and see what they say.  You can try and see if they will compromise the lien (reduce it) and pay it off all at once for a lower amount.  They should be okay with you paying in installments because all they really want is their money.  You may have to sign some form of an agreement with them and if they ask you to do so I would bring the agreement to someone to review on your behalf.  The settlement for the accident I am assuming was to make you whole again.  You need time to get back on your feet and the hospital should understand that.  Good luck.

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