By: Thierry H.B. No. 4048
A BILL TO BE ENTITLED
AN ACT
relating to the attachment of a hospital lien on a cause of action
or claim of an injured person who receives hospital services.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 55.001(3), Property Code, is amended to
read as follows:
(3) "Hospital" has the meaning assigned by Section
241.003, Health and Safety Code [means a person or institution
maintaining a facility that provides hospital services in this
state].
SECTION 2. Sections 55.002(a) and (b), Property Code, are
amended to read as follows:
(a) A hospital has a lien on a cause of action or claim of an
individual who receives hospital services for injuries caused by an
accident that is attributed to the negligence of another person.
For the lien to attach, the individual must receive services from
[be admitted to] a hospital not later than 72 hours after the
accident.
(b) The lien extends to both the [admitting] hospital from
which an individual initially receives services and a hospital to
which the individual is transferred for treatment of the same
injury.
SECTION 3. Section 55.003(a), Property Code, is amended to
read as follows:
(a) A lien under this chapter attaches to:
(1) a cause of action for damages arising from an
injury for which the injured individual receives services from [is
admitted to] the hospital or receives emergency medical services;
(2) a judgment of a court in this state or the decision
of a public agency in a proceeding brought by the injured individual
or by another person entitled to bring the suit in case of the death
of the individual to recover damages arising from an injury for
which the injured individual receives services from [is admitted
to] the hospital or receives emergency medical services; and
(3) the proceeds of a settlement of a cause of action
or a claim by the injured individual or another person entitled to
make the claim, arising from an injury for which the injured
individual receives services from [is admitted to] the hospital or
receives emergency medical services.
SECTION 4. Sections 55.004(b) and (c), Property Code, are
amended to read as follows:
(b) A hospital lien described by Section 55.002(a) is for
the amount of the hospital's charges for services provided to the
injured individual during the first 100 days that [of] the injured
individual receives services from the hospital [individual's
hospitalization].
(c) A hospital lien described by Section 55.002(a) may also
include the amount of a physician's reasonable and necessary
charges for emergency hospital care services provided to the
injured individual during the first seven days that [of] the
injured individual receives services from the hospital
[individual's hospitalization]. At the request of the physician,
the hospital may act on the physician's behalf in securing and
discharging the lien.
SECTION 5. Section 55.009 Property Code, is added to read as
follows:
Sec. 55.009. RECOVERY LIMITED. (a) If a person is entitled
by law to seek a recovery of medical expenses for injuries caused by
an accident that is attributed to the negligence of another person,
the person and all lien holders are entitled to recover as provided
by Subsection (b) or (c).
(b) This subsection applies when a person is not represented
by an attorney in obtaining a recovery. The person and all lien
holders are entitled to recover under Subsection (a) of a person's
recovery in an amount that is equal to the lesser of:
(1) one-half of the person's gross recovery; or
(2) the total amount provided by Sec 55.004.
(c) This subsection applies when a person is represented by
an attorney in obtaining a recovery. The person and lien holders
share under Subsection (a) of a person's recovery is an amount that
is equal to the lesser of:
(1) one-half of the person's gross recovery less
attorney's fees and procurement costs as provided by Section
55.011; or
(2) the total under Sec 55.004 less attorney's fees and
procurement costs as provided by Section 55.011.
SECTION 6. Section 55.010 Property Code, is added to read as
follows:
Sec. 55.010. ATTORNEY'S FEES IN DECLARATORY JUDGMENT
ACTION. Notwithstanding Section 37.009 or any other law, if a
declaratory judgment action is brought under this chapter, the
court may not award costs or attorney's fees to any party in the
action for the declaratory judgment action.
SECTION 7. Section 55.011 Property Code, is added to read as
follows:
Sec. 55.011. ATTORNEY'S FEES IN RECOVERY ACTION. (a) Except
as provided by Subsection (c), a lien holder whose interest is not
actively represented by an attorney in an action seeking a recovery
for injuries caused by an accident that is attributed to the
negligence of another person shall pay to an attorney representing
the person a fee in an amount determined under an agreement entered
into between the attorney and the lien holder plus a pro rata share
of expenses incurred in connection with the recovery.
(b) Except as provided by Subsection (c), in the absence of
an agreement described by Subsection (a), the court shall award to
the attorney, payable out of the lien holder's share of the total
gross recovery, a reasonable fee for recovery of their share, not
to exceed one-third of their recovery, plus a pro rata share of
expenses incurred in connection with the recovery.
(c) If an attorney representing the lien holder's interest
actively participates in obtaining a recovery, the court shall
award and apportion between the person's attorney and lien holder's
attorney a fee and pro rata expenses payable out of recovery. In
apportioning the award, the court shall consider the benefit
accruing to the lien holder as a result of each attorney's service.
The total attorney's fees may not exceed one-third of the payor's
recovery.
SECTION 8. Section 55.012 Property Code, is added to read as
follows:
Sec. 55.012. CONSTRUCTION OF CHAPTER. Nothing in this
chapter shall be construed to prevent a hospital or emergency
medical services provider from waiving, negotiating, or not
pursuing any claim or recovery described in this chapter. The
injured individual or their authorized representative retains
exclusive authority to conduct negotiations on behalf of the
injured individual in the absence of a court order.
SECTION 13
. The change in law made by this Act applies only
to a lien for services provided to an injured individual on or after
the effective date of this Act. A lien for services provided before
the effective date of this Act is governed by the law as it existed
immediately before the effective date of this Act, and that law is
continued in effect for that purpose.
SECTION 14. This Act takes effect September 1, 2017.