The Vermont Statutes Online

Title 18: Health

Chapter 051: Lien for Services Rendered Accident Victims

• [Section 2251 effective until January 1, 2024; see also section 2251 effective January 1, 2024 set out below.]

  § 2251. Lien established [Effective until January 1, 2024]

  A hospital in Vermont, as defined in section 1801 of this title, furnishing medical or other service, including charges of private duty nurses, to a patient injured by reason of an accident not covered by the Workers’ Compensation Act, 21 V.S.A. § 601 et seq., shall have a lien upon any recovery for damages to be received by the patient, or by his or her heirs or personal representatives in the case of his or her death, whether by judgment or by settlement or compromise after the date of the services. This lien shall not attach to one-third of the recovery or $500.00, whichever shall be the lesser, and in addition the lien shall be subordinate to an attorney’s lien. (Added 1963, No. 209, § 1, eff. Oct. 1, 1963; amended 1981, No. 165 (Adj. Sess.), § 1.)

• [Section 2251 effective January 1, 2024; see also section 2251 effective until January 1, 2024 set out above.]

  § 2251. Lien established [Effective January 1, 2024]

  (a) Except as otherwise provided in this section, a hospital in Vermont, as defined in section 1801 of this title, furnishing medical or other service, including charges of private duty nurses, to a patient injured by reason of an accident not covered by the Workers’ Compensation Act, 21 V.S.A. chapter 9, may file a lien upon any recovery for damages to be received by the patient, or by the patient’s heirs or personal representatives in the case of the patient’s death, whether by judgment or by settlement or compromise after the date of the services.

  (b)(1) Notwithstanding subsection (a) of this section, a hospital shall not have a lien under this chapter if the patient has health insurance, including coverage under Medicare, Medicaid, or a health plan issued by a health insurer, as defined in section 9402 of this title, and the patient, or the patient’s heirs or personal representatives in the case of the patient’s death, provides the hospital with proof of health insurance not later than 90 days after the patient’s discharge from or death at the hospital.

  (2) Notwithstanding subdivision (1) of this subsection, a hospital may file a lien pursuant to subsection (a) of this section for any amount owed to the hospital for the patient’s deductible or coinsurance, or both, under the health insurance plan for the medical or other services furnished by the hospital by filing notice of a lien at least 120 days after the hospital billed the patient’s health insurance plan for the amount owed to the hospital for services furnished to the patient.

  (3) The patient’s health insurance plan shall not deny payment for services furnished by the hospital to the patient on the basis that some or all of the patient’s medical costs may be covered by a property and casualty insurance plan, unless such denial is required or expressly permitted by State or federal law.

  (c)(1) A hospital that recovers under this chapter shall be responsible for a pro rata share of the legal and administrative expenses incurred in obtaining the judgment, settlement, or compromise.

  (2) In no event shall the hospital lien exceed one-third of the net judgment, settlement, or compromise received by the injured patient. (Added 1963, No. 209, § 1, eff. Oct. 1, 1963; amended 1981, No. 165 (Adj. Sess.), § 1; 2023, No. 51, § 7, eff. January 1, 2024.)

• § 2252. Notice

  The lien shall not be effective, however, unless a written notice containing the name and address of the injured person, the date of the accident, the name and location of the hospital, and the name of the person alleged to be liable is filed in the office of the clerk of the town in which the hospital is located, before the payment of any monies to the injured person, his or her attorneys, or legal representatives as compensation for the injuries; nor unless the hospital also mails, postage prepaid, a copy of the notice with a statement of the date of filing thereof to the injured person, and to the person alleged to be liable before payment to the injured person, his or her attorneys, or legal representative of compensation for the injuries. The hospital shall mail a copy of the notice to any insurance carrier that has insured the person against liability for the accident. (Added 1963, No. 209, § 2, eff. Oct. 1, 1963.)

• § 2253. Liability

  A person making payment to the patient or to his or her attorneys or heirs or legal representatives as compensation for the injury sustained, after the filing and mailing of the notice without paying to the hospital the amount of its lien or so much thereof as can be satisfied out of the monies due after any final judgment or compromise or settlement agreement after paying the amount of any prior liens, shall, for one year from the date of payment, be liable to the hospital for the amount that the hospital was entitled to receive; and the hospital may, within that year, enforce its lien by a civil action against the person making any such payment. Provided, however, that unless said action is brought within said year, such lien shall be void. (Added 1963, No. 209, § 3, eff. Oct. 1, 1963.)

• § 2254. Hospital lien docket

  Every town clerk shall, at the expense of the town, provide a suitable well-bound book to be called the hospital lien docket in which, upon the filing of any lien claim under this chapter, he or she shall enter the name of the injured person, the name of the person alleged to be liable for the injuries, the date of the accident, and the name of the hospital or other institution making the claim. The clerk shall index the docket in the name of the injured person and the hospital. (Added 1963, No. 209, § 4, eff. Oct. 1, 1963.)

• § 2255. Extension of lien

  In the event that a hospital entitled to a lien under this chapter shall have served a notice as provided for by 33 V.S.A. § 821, the lien herein provided for shall extend to the town receiving such notice, provided that the town so served shall follow the provisions of sections 2252 and 2253 of this title. (Added 1963, No. 209, § 5, eff. Oct. 1, 1963; amended 2023, No. 6, § 136, eff. July 1, 2023.)

• § 2256. Discharge

  The hospital or town asserting a lien pursuant to the provisions of this chapter shall, within 30 days from the date its claim is satisfied, file its certificate of discharge with the town clerk where the lien is filed, and the town clerk shall make proper entry and index of the discharge in the hospital lien docket. All fees for recording of notices or discharges shall be at the expense of the hospital or town filing the same. (Added 1963, No. 209, § 6, eff. Oct. 1, 1963.)