093_SB0274enr

 
SB274 Enrolled                       LRB093 03377 DRJ 03395 b

 1        AN ACT to amend certain Acts in relation to liens.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 1.  Short title. This Act may  be  cited  as  the
 5    Health Care Services Lien Act.

 6        Section 5.  Definitions. In this Act:
 7        "Health care professional" means any individual in any of
 8    the   following   license   categories:  licensed  physician,
 9    licensed dentist, licensed optometrist,  licensed  naprapath,
10    licensed   clinical   psychologist,   or   licensed  physical
11    therapist.
12        "Heath care provider" means any  entity  in  any  of  the
13    following  license  categories:  licensed  hospital, licensed
14    home health agency, licensed  ambulatory  surgical  treatment
15    center, or licensed emergency medical services personnel.

16        Section 10.  Lien created; limitation.
17        (a)  Every  health  care  professional  and  health  care
18    provider  that renders any service in the treatment, care, or
19    maintenance of an injured person,  except  services  rendered
20    under  the provisions of the Workers' Compensation Act or the
21    Workers' Occupational Diseases Act, shall have  a  lien  upon
22    all claims and causes of action of the injured person for the
23    amount  of  the  health  care  professional's  or health care
24    provider's reasonable charges up to the date  of  payment  of
25    damages  to the injured person. The total amount of all liens
26    under this Act, however, shall not exceed 40% of the verdict,
27    judgment, award, settlement, or compromise secured by  or  on
28    behalf  of the injured person on his or her claim or right of
29    action.
30        (b)  The lien shall include a written  notice  containing
 
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 1    the  name  and address of the injured person, the date of the
 2    injury, the name and address of the health care  professional
 3    or health care provider, and the name of the party alleged to
 4    be  liable to make compensation to the injured person for the
 5    injuries received. The lien notice shall be  served  on  both
 6    the  injured  person  and the party against whom the claim or
 7    right of action exists. Notwithstanding any  other  provision
 8    of  this  Act, payment in good faith to any person other than
 9    the healthcare professional or healthcare  provider  claiming
10    or asserting such lien prior to the service of such notice of
11    lien  shall,  to  the  extent  of the payment so made, bar or
12    prevent the creation of an enforceable lien. Service shall be
13    made by registered or certified mail or in person.
14        (c)  All  health  care  professionals  and  health   care
15    providers  holding  liens  under  this  Act with respect to a
16    particular injured person shall share  proportionate  amounts
17    within  the statutory limitation set forth in subsection (a).
18    The statutory limitations under this Section may be waived or
19    otherwise reduced  only  by  the  lienholder.  No  individual
20    licensed  category  of  health  care  professional  (such  as
21    physicians)  or  health  care provider (such as hospitals) as
22    set forth in  Section  5,  however,  may  receive  more  than
23    one-third  of  the  verdict,  judgment, award, settlement, or
24    compromise secured by or on behalf of the injured  person  on
25    his  or  her claim or right of action. If the total amount of
26    all liens under this Act meets or exceeds 40% of the verdict,
27    judgment, award, settlement, or compromise, then:
28             (1)  all the  liens  of  health  care  professionals
29        shall  not  exceed  20%  of the verdict, judgment, award,
30        settlement, or compromise; and
31             (2)  all the liens of health  care  providers  shall
32        not   exceed   20%   of  the  verdict,  judgment,  award,
33        settlement, or compromise;
34    provided, however, that health care services liens  shall  be
 
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 1    satisfied   to  the  extent  possible  for  all  health  care
 2    professionals and health care providers by  reallocating  the
 3    amount  unused  within  the aggregate total limitation of 40%
 4    for all health  care  services  liens  under  this  Act;  and
 5    provided  further  that the amounts of liens under paragraphs
 6    (1) and (2) are subject to  the  one-third  limitation  under
 7    this subsection.
 8          If  the  total amount of all liens under this Act meets
 9    or exceeds 40% of the verdict, judgment,  award,  settlement,
10    or compromise, the total amount of all the liens of attorneys
11    under  the  Attorneys  Lien  Act  shall not exceed 30% of the
12    verdict, judgment, award, settlement, or compromise.   If  an
13    appeal  is taken by any party to a suit based on the claim or
14    cause of action, however, the attorney's lien  shall  not  be
15    affected or limited by the provisions of this Act.
16        (d)  If  services  furnished by health care professionals
17    and health care providers are  billed  at  one  all-inclusive
18    rate,  the  total reasonable charges for those services shall
19    be reasonably allocated among the health  care  professionals
20    and  health  care providers and treated as separate liens for
21    purposes of this Act, including the filing of  separate  lien
22    notices.  For  services provided under an all-inclusive rate,
23    the liens  of  health  care  professionals  and  health  care
24    providers  may  be  asserted  by  the  entity  that bills the
25    all-inclusive rate.
26        (e)  Payments under the liens shall be made  directly  to
27    the  health care professionals and health care providers. For
28    services provided under an all-inclusive rate, payments under
29    liens shall be made directly to the  entity  that  bills  the
30    all-inclusive rate.

31        Section  15.  Notice  of  judgment  or award. A judgment,
32    award, settlement, or compromise secured by or on  behalf  of
33    an  injured  person  may not be satisfied without the injured
 
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 1    person or his or her authorized representative  first  giving
 2    notice  of  the judgment, award, settlement, or compromise to
 3    the health care professional or  health  care  provider  that
 4    rendered  a service in the treatment, care, or maintenance of
 5    the injured person and that has served a lien notice pursuant
 6    to subsection (b) of Section  10.  The  notice  shall  be  in
 7    writing  and served upon the lien holder or, in the case of a
 8    lien holder operated entirely by a unit of local  government,
 9    upon  the  individual or entity authorized to receive service
10    under Section 2-211 of the Code of Civil Procedure.

11        Section 20.  Items to which lien attaches. The lien of  a
12    health  care  professional or health care provider under this
13    Act shall, from and after the time of the service of the lien
14    notice, attach to any verdict, judgment,  award,  settlement,
15    or  compromise secured by or on behalf of the injured person.
16    If the verdict, judgment, award, settlement, or compromise is
17    to be paid over time by means of an annuity or otherwise, any
18    lien under this Act shall be satisfied by the party obligated
19    to compensate  the  injured  person  to  the  fullest  extent
20    permitted  by  Section  10  before  the  establishment of the
21    annuity or other extended payment mechanism.

22        Section 25.  Examination of health care records.
23        (a)  Upon written request by medical authorization signed
24    by  the  patient  or  the  patient's  representative,  or  by
25    subpoena, any party to a pending court action against whom  a
26    claim  is  asserted for damages resulting from injuries shall
27    be permitted to  examine  the  records  of  any  health  care
28    professional  or  health  care provider concerning the health
29    care professional's  or  health  care  provider's  treatment,
30    care,  or  maintenance  of the injured person. Within 20 days
31    after receiving a written request  by  medical  authorization
32    signed  by the patient or the patient's representative, or by
 
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 1    subpoena, a health care professional or health care  provider
 2    claiming a lien under this Act must furnish to the requesting
 3    party,  or  file  with  the  clerk  of the court in which the
 4    action is pending, all of the following:
 5             (1)  A written statement of the nature and extent of
 6        the injuries sustained by the injured person.
 7             (2)  A written statement of the nature and extent of
 8        the treatment, care, or maintenance given to or furnished
 9        for the injured person by the health care professional or
10        health care provider.
11             (3)  A written statement of the history, if any,  as
12        given  by  the  injured  person,  insofar as shown by the
13        health care records,  as  to  the  manner  in  which  the
14        injuries were received.
15        (b)  If   a  health  care  professional  or  health  care
16    provider fails or refuses to give or file a written statement
17    in conformity with and as required by  subsection  (a)  after
18    being  so  requested in writing in conformity with subsection
19    (a), the lien of that health care professional or health care
20    provider under this Act shall  immediately  become  null  and
21    void.

22        Section 30.  Adjudication of rights. On petition filed by
23    the  injured person or the health care professional or health
24    care provider and on the petitioner's written notice  to  all
25    interested   adverse   parties,   the   circuit  court  shall
26    adjudicate the rights of all interested parties  and  enforce
27    their liens.

28        Section  35.  Liens  created  under  prior  law.  A  lien
29    validly  created  under  the Clinical Psychologists Lien Act,
30    the  Dentists  Lien  Act,  the  Emergency  Medical   Services
31    Personnel Lien Act, Home Health Agency Lien Act, the Hospital
32    Lien  Act,  the Optometrists Lien Act, the Physical Therapist
 
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 1    Lien Act, or the Physicians Lien Act remains  in  full  force
 2    and  effect  on  and after July 1, 2003. Such a lien shall be
 3    enforceable according to,  and  otherwise  governed  by,  the
 4    provisions  of the Act or Code under which it was created, as
 5    those provisions existed on June 30, 2003.

 6        Section 40.  Attorney's lien. Nothing in this  Act  shall
 7    affect   the  priority  of  any  attorney's  lien  under  the
 8    Attorneys Lien Act.

 9        Section 45.  Amounts not recovered under  lien.   Nothing
10    in  this  Act  shall  be construed as limiting the right of a
11    health  care  professional  or  health  care   provider,   or
12    attorney,  to pursue collection, through all available means,
13    of its reasonable charges for the services it furnishes to an
14    injured person. Notwithstanding any other provision of law, a
15    lien holder may seek payment of the amount of its  reasonable
16    charges  that  remain  not paid after the satisfaction of its
17    lien under this Act.

18        Section  900.  The  Attorneys  Lien  Act  is  amended  by
19    changing Section 1 as follows:

20        (770 ILCS 5/1) (from Ch. 13, par. 14)
21        Sec. 1.  Attorneys at law shall  have  a  lien  upon  all
22    claims,  demands  and  causes of action, including all claims
23    for unliquidated damages, which may be placed in their  hands
24    by  their  clients for suit or collection, or upon which suit
25    or action has been instituted, for  the  amount  of  any  fee
26    which may have been agreed upon by and between such attorneys
27    and  their clients, or, in the absence of such agreement, for
28    a reasonable fee, for the services  of  such  suits,  claims,
29    demands  or causes of action, plus costs and expenses. In the
30    case of a claim, demand, or cause of action with  respect  to
 
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 1    which  the  total  amount  of all liens under the Health Care
 2    Services Lien Act meets or exceeds 40% of the sum paid or due
 3    the injured person, the total amount of all liens under  this
 4    Act  shall  not exceed 30% of the sum paid or due the injured
 5    person.  All  attorneys  shall  share  proportionate  amounts
 6    within this statutory limitation.  If an appeal is  taken  by
 7    any  party  to  a suit based on the claim or cause of action,
 8    however, the attorney's lien shall not be affected or limited
 9    by the provisions of this Act.
10        To enforce such lien, such attorneys shall  serve  notice
11    in  writing,  which  service  may  be  made  by registered or
12    certified mail, upon the party against whom their clients may
13    have such suits, claims or causes of  action,  claiming  such
14    lien  and  stating  therein  the  interest  they have in such
15    suits, claims, demands or causes of action.  Such lien  shall
16    attach  to  any verdict, judgment or order entered and to any
17    money or property which may be recovered, on account of  such
18    suits,  claims,  demands  or causes of action, from and after
19    the time of service of the notice.  On petition filed by such
20    attorneys  or  their   clients   any   court   of   competent
21    jurisdiction  shall,  on  not less than 5 days' notice to the
22    adverse party, adjudicate  the  rights  of  the  parties  and
23    enforce the lien.
24    (Source: P.A. 86-1156; 87-425.)

25        (770 ILCS 10/Act rep.)
26        Section  905.  The  Clinical  Psychologists  Lien  Act is
27    repealed.

28        (770 ILCS 20/Act rep.)
29        Section 910.  The Dentists Lien Act is repealed.

30        (770 ILCS 22/Act rep.)
31        Section 915.  The Emergency  Medical  Services  Personnel
 
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 1    Lien Act is repealed.

 2        (770 ILCS 25/Act rep.)
 3        Section   920.  The   Home  Health  Agency  Lien  Act  is
 4    repealed.

 5        (770 ILCS 35/Act rep.)
 6        Section 925.  The Hospital Lien Act is repealed.

 7        (770 ILCS 72/Act rep.)
 8        Section 930.  The Optometrists Lien Act is repealed.

 9        (770 ILCS 75/Act rep.)
10        Section  935.  The  Physical  Therapist   Lien   Act   is
11    repealed.

12        (770 ILCS 80/Act rep.)
13        Section 940.  The Physicians Lien Act is repealed.

14        Section 945.  If and only if the provisions of House Bill
15    1205  of  the  93rd General Assembly creating the Naprapathic
16    Lien Act become law, the Naprapathic Lien Act is repealed.

17        Section 999.  Effective date. This Act  takes  effect  on
18    July 1, 2003.