SLS 11RS-437 ORIGINAL
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2011
SENATE BILL NO. 149
BY SENATOR MORRISH
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
PRIVILEGES/LIENS. Provides with respect to the health care provider privileges. (8/15/11)
AN ACT1
To amend and reenact R.S. 9:4752 and 4753(A) and to enact R.S. 9:4751(5), relative to2
proceeds recovered by injured persons; to provide with respect to the health care3
provider privilege; to provide that election to pursue and enforce a health care4
provider privilege is not considered an attempt to collect charges or fees from the5
injured person; to provide for definitions; to provide for the enforcement of a6
privilege; to provide with respect to health and accident insurance being secondary7
to the health care provider privilege; to provide with respect to written notice; and8
to provide for related matters.9
Be it enacted by the Legislature of Louisiana:10
Section 1. R.S. 9:4752 and 4753(A) are hereby amended and reenacted and R.S.11
9:4751(5) is hereby enacted to read as follows:12
§4751. Definitions13
As used in this Part:14
* * *15
(5) "Third party" means a tortfeasor, liability insurer, or indemnity16
insurer.17 SB NO. 149
SLS 11RS-437 ORIGINAL
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
§4752. Privilege on net proceeds collected from third party in favor of medical1
providers for services and supplies furnished injured persons2
A. A health care provider, hospital, or ambulance service that furnishes3
services or supplies to any injured person shall have a privilege for the reasonable4
charges or fees of such health care provider, hospital, or ambulance service on the5
net amount payable by a third party to the injured person, his heirs, or legal6
representatives, out of the total amount of any recovery or sum had, collected, or to7
be collected, whether by judgment or by settlement or compromise, on account of8
such injuries, and on the net amount payable by any insurance company under any9
contract providing for indemnity or compensation to the injured person. The10
enforcement of the privilege created in this Section shall not be considered an11
attempt to collect from the injured person the charges or fees of the health care12
provider, hospital, or ambulance service, and any health and accident insurance13
under which the injured person is a beneficiary shall become secondary to this14
privilege.15
B. The privilege of an attorney shall have precedence over the privilege16
created under this Section.17
§4753. Written notice18
A. The privilege created by R.S. 9:4752 shall become effective if, prior to19
the payment of insurance proceeds, or to the payment of any judgment, settlement,20
or compromise by a third party on account of injuries, a written notice containing21
the name and address of the injured person and the name and location of the22
interested health care provider, hospital, or ambulance service is delivered by23
certified mail, return receipt requested, or by facsimile electronic transmission with24
proof of receipt of transmission by the interested health care provider, hospital, or25
ambulance services, or the attorney or agent for the interested health care provider,26
hospital, or ambulance service, to the injured person, to his attorney, to the person27
alleged to be liable to the injured person on account of the injuries sustained, to any28
insurance carrier which has insured such person against liability, and to any29 SB NO. 149
SLS 11RS-437 ORIGINAL
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
insurance company obligated by contract to pay indemnity or compensation to the1
injured person. This privilege shall be effective against all persons given notice2
according to the provisions of this Section and shall not be defeated nor rendered3
ineffective as against any person that has been given the required notice because of4
failure to give the notice to all those persons named in this Subsection.5
* * *6
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Angela L. De Jean.
DIGEST
Proposed law defines "third party" as a tortfeasor, liability insurer or indemnity insurer.
Present law provides that a health care provider, hospital or ambulance service which
furnishes services to an injured person shall have a privilege for certain charges or fees on
the net amount payable to the injured person.
Proposed law provides that the privilege created by present law is on the net amount payable
by a third party to the injured person.
Proposed law provides that when a health care provider, hospital or ambulance service seeks
to enforce the privilege created by present law the enforcement shall not be considered an
attempt to collect from the injured person.
Proposed law additionally provides that when the health care provider, hospital or
ambulance service enforces the privilege, any health and accident insurance the injured party
shall become secondary to this privilege.
Present law provides that prior to the payment of insurance proceeds, any judgment,
settlement or compromise, the privilege created shall become effective if certain conditions
are met.
Proposed law provides that the privilege will become effective if certain conditions are met
prior to the payment of insurance proceeds, or the payment of any judgment, settlement, or
compromise by a third party.
Effective August 15, 2011.
(Amends R.S. 9:4752 and 4753(A); adds R.S. 9:4751(5))