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As if having cancer isn’t enough, the cost of treatment and medical bills are an additional nightmare! It can feel like there’s a new hospital bill in the mail every day.
Why can’t the hospital just put all the charges for one procedure on a single bill instead of giving us multiple bills? It’s so hard to keep track of what’s been paid and what we still owe. It’s easy to fall behind in paying medical bills, especially if you’ve had to stop working during treatment or to care for someone going through treatment. When someone can’t pay the bills for their medical expenses, sometimes a hospital will place a lien on their home.
A hospital lien is a legal claim that a healthcare provider can make on a patient’s property to make sure they get paid for medical services they have provided. It’s important to understand what hospital liens are, how they work, and what you can do to prevent them from affecting your financial situation.
In this post, we’ll provide a complete guide to hospital liens and cancer treatment. We’ll talk about what they are, how to avoid getting a lien, what to do if one is placed on your property, and how to get help paying your medical bills. By the end, you’ll understand hospital liens better and know what steps you can take to protect yourself and your family.
What is a hospital lien?
A hospital lien is a legal claim that a healthcare provider can place on a patient’s property in order to secure payment for medical services provided. It gives them the right to recover unpaid bills by placing a lien on patients’ homes or a property lien against other assets. The lien can prevent the patient from selling or refinancing the property until the debt is paid off.
Most states allow hospital liens, and the rules and regulations can be different depending on where you live. In general, they can be used when someone gets medical treatment and but can’t pay their hospital bills. The provider can then file a lien against any property owned by the patient to make sure they get their money.
It’s important to note that hospital liens are not the same as medical liens. Medical liens are filed by healthcare providers against a patient’s potential legal settlement money from a personal injury case. For example, if someone gets hurt in a car accident and wins a personal injury settlement, the medical institution can collect the unpaid medical debt out of that settlement.
Can a hospital put a lien on your house?
Healthcare providers use hospital liens to make sure they get paid for medical services given to patients who can’t afford to pay their bills. Whether providing emergency services or cancer treatment, hospital liens may be used in situations where a patient has large medical bills that insurance doesn’t cover, or for uninsured patients that can’t pay for treatment out-of-pocket.
Hospitals usually see liens as a last resort. Often, they are used only after other attempts to collect the money have failed. In many cases, hospitals and clinics will work with patients to set up payment plans or negotiate a reduced bill before resorting to a lien.
These liens can have serious consequences for patients and their families. If a lien is put on a patient’s property, it can be hard or even impossible to sell or get a loan on it until the outstanding debt is paid off. This can be especially tough for cancer patients and their caregivers, who may already be facing a lot of financial strain.
So, while hospital liens can be a useful tool for a medical services provider to recover unpaid medical bills, they can also be a burden and source of major stress for patients.
The process of filing a hospital lien
Before a medical provider can file a lien, there have to follow certain steps to collect the money owed for health care services. Here’s how it usually goes (remember, it can be different depending on the state):
1. Try to get payment from the insurance company.
2. Send a bill to your home with the amount due.
3. If the bill is late and you haven’t made any payment arrangements, the hospital might send the bill to a collection agency. Debt collectors can be very aggressive in their attempts to collect money, and in some states, wage garnishment is allowed, which is where they take money from your paycheck to pay the bill. The overdue bills and collection attempts are noted on your credit report, which may have long-term financial consequences.
4. If they still can’t get the money, the medical care provider must send you a lien notice letter saying they plan to take legal action and file a lien. The letter has to include the amount of the lien and the total amount you owe.
5. If you don’t respond by the deadline they give you, they’ll file the lien with the county clerk’s office and start the legal process. You or your lawyer will need to go to court and work with the court to settle the lien.
How to prevent getting a hospital lien
Preventing a hospital lien from being placed on your property can be challenging, but there are things you can do to lower the risk. Here are some tips to keep in mind:
1. Know your insurance coverage
It’s important to know what your insurance covers and how it works. Before starting cancer treatment, carefully review your insurance policy and figure out what services are covered and what your out-of-pocket costs will be. If you have questions, reach out to your insurance provider or a patient advocate for assistance. Your oncology social worker can connect you with the financial coordinator or the medical billing office of the hospital or clinic.
2. Communicate with your healthcare provider
If you’re having trouble paying your medical bills or if you think you’ll struggle in the future, let your contact in the billing/finance department know right away. They may have financial assistance programs or payment plans that can help patients manage their medical bills. By talking about your concerns, you might be able to work out a payment plan or other arrangement and avoid a lien on your property.
3. Look for financial help
Besides payment plans from healthcare providers, there could be other ways to get financial help. Non-profit organizations, government programs, and community resources may be able to provide financial assistance or other forms of support to help cover the cost of treatment.
Researching these options ahead of time can help you prepare for any financial challenges that may arise. Your oncology social worker will be a great help here too, as they probably know and have connections at local organizations that may be able to help you out.
4. Consider fundraising options
Fundraising can help cover the cost of cancer treatment. Crowdfunding platforms like GoFundMe let you create a fundraising campaign and share it with friends, family, and others who want to help. You can also try hosting a fundraising event or asking local businesses or groups for support.
5. Seek legal advice
If you’re worried about a hospital lien, it could be a good idea to talk to a lawyer familiar with medical debt and liens. They can explain your legal rights and may be able to negotiate with the hospital on your behalf.
By taking these steps, you can reduce the chance of getting a hospital lien and protect yourself and your family from unnecessary financial strain. Next, we’ll talk about what to do if a lien is placed on your property.
What to do if a hospital lien is placed on your property
Note: I am not a financial advisor nor lawyer, so this is not financial or legal advice – just tips that have been helpful for the patients and families I’ve worked with. Consult your attorney or financial advisor to fully understand your legal obligations.
If a hospital puts a lien on your property, it’s important to take action quickly. Here are some steps to consider:
1. Read the lien documents
First, go through the paperwork related to the hospital lien. Make sure you understand the terms of the lien and what it means for your property. If you have questions, ask the medical billing department or a lawyer for help.
2. Negotiate with your healthcare provider
Sometimes, you can negotiate with your healthcare provider to release the lien or set up a payment plan that works for your financial situation. Reach out to them as soon as possible to explore your options.
3. Explore legal options
If talking to your provider doesn’t work, you might want to consider getting legal advice to challenge the lien.
4. Seek financial assistance
If you’re struggling to pay your medical bills, look for financial assistance right away. Non-profit organizations, government programs, and community resources may be able to help with the cost of treatment. Research these options and apply for assistance to manage your bills and avoid more financial problems.
5. Consider bankruptcy as a last resort
Some have filed bankruptcy to clear their medical debt and remove the hospital lien. If you’re considering bankruptcy, consult with a lawyer who can guide you through the process and explain the consequences.
Conclusion
Hospital liens can be overwhelming for cancer patients and their caregivers. It’s important to know what they are, how to prevent them, and what to do if they happen. By being proactive and informed about your medical bills, you can reduce your financial stress and focus on your recovery.
Remember:
- Know your rights and responsibilities as a patient.
- Understand your insurance policy and what it pays for.
- Talk to your healthcare providers about your financial situation.
- Look into programs that offer financial assistance and support.
- Consider fundraising if necessary.
