Money and liens
Medical lien
A medical lien is a healthcare provider's claim on a settlement for treatment given on credit while the case was pending, repaid from the recovery before the claimant's share.
It is what allows an uninsured injured person to receive treatment at all, usually under a letter of protection from their attorney.
Provider liens are routinely reduced in negotiation. The stated balance is rarely the amount finally paid.
Related terms
- Lien — A lien is a legal claim on settlement proceeds that must be satisfied out of the recovery before the claimant receives their share.
- Letter of protection — A letter of protection is a written undertaking from an attorney to a medical provider promising payment from the eventual settlement, allowing treatment to proceed without payment at the time.
- Subrogation — Subrogation is a health insurer's right to be reimbursed from a claimant's settlement for medical costs it paid in connection with the injury.
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