HBA-ALS H.B. 609 76(R) BILL ANALYSIS
Office of House Bill AnalysisH.B. 609
By: Janek
Business and Industry
2/23/1999
Introduced
BACKGROUND AND PURPOSE
Under current law, a health care practitioner (practitioner) that has
provided services to an individual injured by the negligence of another
does not have a lien on the injured individual's cause of action. In this
situation, it is possible for a practitioner to be uncompensated by being
left out of any settlement between the parties. H.B. 609 allows a health
care practitioner to attach and secure a lien on an individual's cause of
action for damages, a Texas court judgement or public agency decision, or
the settlement proceeds of a cause of action or claim arising from the
injury. Under H.B. 609, the lien is for the amount of the practitioner's
reasonable and necessary charges for services provided to the injured
individual. The bill specifies the notice and filing requirements of
securing and discharging the lien and the validity of a release of the
lien. H.B. 609 requires the practitioner to provide the individual's
relevant medical records to an attorney if requested by an attorney for a
party by, for, or against whom a claim is asserted , and makes a filed
practitioner's lien subordinate to a hospital lien.
RULEMAKING AUTHORITY
It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Subtitle B, Title 5, Property Code, by adding Chapter
62, as follows:
CHAPTER 62. HEALTH CARE PRACTITIONER'S LIEN
Sec. 62.001. DEFINITION. Defines "health care practitioner" to mean an
individual who is licensed in this state to provide health care services.
Sec. 62.002. LIEN. Provides that a health care practitioner
(practitioner) has a lien on a cause of action or claim of an individual
who is provided health care services by the practitioner for injuries
caused by an accident that is attributed to the negligence of another
person.
Sec. 62.003. PROPERTY TO WHICH LIEN ATTACHES. (a) Provides that the
lien attaches to a cause of action for damages arising from an injury for
which the individual receives health care services; to a court judgment in
this state or a public agency decision in a proceeding brought by the
injured individual, or by a person entitled to bring suit for the death of
the individual, to recover damages for an injury for which the individual
receives health care services; and to the settlement proceeds of a cause of
action or claim brought by the injured individual, or a person entitled to
make the claim, which arise from an injury for which the individual
receives health care services.
(b) Provides that the lien does not attach to a claim under specified
state and federal laws related to worker's compensation, longshoreman and
harbor workers' compensation, and common carrier railroad liability, or to
insurance policy proceeds in favor of the injured individual, the injured
individual's beneficiary, or the injured individual's legal representative.
Makes an exception that allows the lien to attach to the proceeds of public
liability insurance that is carried to protect the insured against loss
caused by an accident or collision.
Sec. 62.004. AMOUNT OF LIEN. Provides that the lien amount is the
practitioner's reasonable charges for necessary services provided to the
injured individual for treatment of injuries resulting from the accident.
Sec. 62.005. SECURING LIEN. (a) Provides that in order to secure the
lien the practitioner must file written notice of the lien with the clerk
of the county where the injury occurred and with the clerk of the county
where the individual resides, send written notice by registered or
certified mail to each insurer that may have liability arising out of the
accident, and send written notice by registered or certified mail to each
individual who receives health care services from the practitioner for
injuries caused by an accident attributed to the negligence of another
person.
(b) Provides that the required notices under Subsection (a) must be given
before the fourth business day following the date the services are provided
and before money is paid to a person entitled to recover due to the injury.
(c) Provides that the required notices under Subsection (a) must contain
the injured individual's name and address, the date of the accident, the
name and address of the practitioner, and the name of the person alleged to
be liable for the damages arising from the injury, if known.
(d) Provides that the required notices under Subsection (a)(2) must include
a statement informing each party of the practitioner's right to recover
from the proceeds awarded to the individual who received health care
services from the practitioner for injuries caused by an accident
attributed to the negligence of another person. Provides that a
practitioner forfeits the right to recover under this chapter if the
practitioner fails to provide the statement required by this subsection.
(e) Requires a county clerk who receives notice under Subsection (a)(1), to
record the name of the injured individual, the date of accident, and the
name and address of the practitioner, and to index the record in the
injured individual's name.
Sec. 62.006. DISCHARGE OF LIEN. Provides that in order to discharge the
lien, the practitioner must execute and file with each county clerk where
lien notice was filed a certificate stating that the debt has been paid or
released and authorizing the clerk to discharge the lien. Provides that
the practitioner must file the certificate before the third business day
after the date the practitioner receives payment for the health care
services. Requires the county clerk to record a memorandum of the
certificate and the date that the memorandum was filed. Requires the
filing of the certificate and recording of the memorandum to discharge the
lien.
Sec. 62.007. VALIDITY OF RELEASE. Provides that a release of a cause of
action or judgment to which the lien may attach is not valid unless the
practitioner's charges were paid in full before the execution and delivery
of the release; the practitioner's charges were paid before the execution
and delivery of the release to the extent of any full and true
consideration paid to the injured individual by or on behalf of the other
parties to the release; or the practitioner is a party to the release.
Provides that a judgment to which a lien attaches remains effective until
the practitioner's charges are paid in full or to the extent set out in the
judgment.
Sec. 62.008. HEALTH CARE PRACTITIONER'S RECORDS. (a) Requires a
practitioner to make available for an attorney's examination, as promptly
as possible, the practitioner's records of health care services provided to
the injured individual upon request of the attorney for the injured party,
if requested by an attorney for a party by, for, or against whom a claim is
asserted for damages arising from an injury
(b) Authorizes the practitioner to impose reasonable access requirements
to the practitioner's records under this section. Prohibits the
practitioner from denying access to the records because a record is
incomplete. Provides that the records are admissible in a civil suit
arising from the injury subject to applicable rules of evidence.
Sec. 62.009. PRIORITY OF HOSPITAL LIEN OVER OTHER LIENS. Provides that a
practitioner's lien filed under this chapter is subordinate to a hospital
lien filed under Chapter 55 (Hospital Lien).
SECTION 2. Amends Section 55.004, Property Code, as follows:
Sec. 55.004. AMOUNT OF LIEN. Creates Subsection (b) to authorize the
lien to include the amount of a physician's charges for services provided
to the injured individual in the hospital's emergency room during the first
100 days of hospitalization. Authorizes the hospital, at the request of
the physician, to act on behalf of the physician with respect to securing
and discharging the lien. Creates Subsection (c) from existing text.
Redesignates Subsection (b) to Subsection (d). Makes nonsubstantive
changes.
SECTION 3. Effective date: September 1, 1999.
Makes application of this Act prospective.
SECTION 4. Emergency clause.