TOPEKA — The Kansas House today passed, 115-8, a bill that would relax documentation requirements for Kansas hospitals that file liens when an injured person maintains a claim against another party for their injuries.

Senate Bill 424 passed the Senate last week, 40-0. It would require hospitals filing liens to include only the total amount of the hospital’s claim and would eliminate the hospital’s requirement to give notice to the potentially liable party and insurance carrier.

The bill “would make changes to current law making it easier for hospitals to enforce a lien,” said Audrey Dunkel, director of financial advocacy at the Kansas Hospital Association. “The changes would support the public purpose behind hospital liens – to encourage hospitals to treat patients regardless of the patients’ ability to pay.”

The new legislation requires hospitals to do the following when filing a lien:

1. Provide the total amount of the hospital claim.
2. Provide the name and address of the injured person.
3. Provide the date of the accident.
4. Provide the name and location of the hospital.
5. File the lien in the district court of the county in which the hospital is located.
6. Send by registered or certified mail a copy of the notice to the patient.

The bill removes the hospitals’ requirement to notify the company or person held liable and the insurance carrier involved in the claim.

Matt Hesse, senior counsel for Via Christi Health, said the hospital collaborated with the hospital association seeking to amend the current law as a result of the Kansas Supreme Court ruling in the case of Via Christi Medical Center, Inc. vs. Ivan M Reed.

In the case, a train near Hutchinson struck the patient’s car. He was flown to Wichita for medical treatment at a Via Christi hospital with bills totaling $83,000. The hospital filed a lien but did not properly name the entity alleged to be liable, and the hospital’s bills to the patient were included in the patient’s settlement with the railroad company.

The patient and Via Christi couldn’t agree on the amount the patient should pay on the bill, and the hospital filed a case with the district court to determine that cost. After the district court and Kansas Appeals Court ruled in favor of the hospital, the Kansas Supreme Court reversed the decision saying the lien was invalid due to its noncompliance with the lien law’s documentation requirement.

The state’s current lien legislation was enacted in 1939.

“We believe that SB 424 would further the original intent of the Legislature by allowing hospitals to file a lien to protect its right to receive some payment for medical services from proceeds or personal injury settlements or judgments,” Hesse said.

There were no opponents to the bill in committee hearings.