H.F. _____ Section 1. NEW SECTION . 582A.1 Short title. 1 This Act may be cited as the “Health Care Professional Lien 2 Act” . 3 Sec. 2. NEW SECTION . 582A.2 Definitions. 4 For purposes of this chapter, “health care professional” 5 means a person licensed pursuant to chapter 148, 149, or 151. 6 Sec. 3. NEW SECTION . 582A.3 Lien created. 7 1. Every health care professional who renders any service 8 in the treatment, care, or maintenance of any patient injured 9 by reason of an accident or an intentional act by a third 10 party, which is not covered by the workers’ compensation Act in 11 chapter 85, 85A, or 85B, shall have a lien upon all claims and 12 causes of action of the injured patient for the amount of the 13 health care professional’s charges up to the date of payment of 14 damages to the injured patient. 15 2. The injured patient or the injured patient’s legal 16 representative or attorney shall notify the health care 17 professional at the time services are rendered, or as soon 18 as practicable thereafter, that the patient’s injuries were 19 sustained in an accident or were the result of an intentional 20 act by a third party. In addition, the notification shall 21 include the date of the accident or intentional act, the 22 persons, entities, or insurers allegedly liable for the injured 23 patient’s damages, and the name and contact information for the 24 injured patient’s attorney or legal representative, if any. 25 Sec. 4. NEW SECTION . 582A.4 Written notice of lien. 26 A lien shall not be effective unless a written notice 27 containing the name and address of the injured patient, the 28 date of the accident or intentional act, the name and address 29 of the health care professional, and the name of the party 30 allegedly liable for the injured patient’s damages is served on 31 both the injured patient and the party against whom the claim 32 or right of action exists. Service shall be made by certified 33 mail or restricted certified mail, as defined in section 34 618.15, or in person. A copy of the notice shall be mailed 35 -1- LSB 2145HC (10) 84 rh/rj 1/ 5

H.F. _____ to the injured patient’s attorney or legal representative 1 provided the patient has previously provided the health 2 care professional with the name and address of the patient’s 3 attorney or legal representative. 4 Sec. 5. NEW SECTION . 582A.5 Lien payments. 5 Payments under the lien created under this chapter shall be 6 made directly to the health care professional. 7 Sec. 6. NEW SECTION . 582A.6 Items to which lien attaches 8 —— enforcement. 9 1. A health care professional’s lien under this chapter 10 shall, from and after the time of the service of the lien 11 notice, attach to any verdict, judgment, award, settlement, 12 or compromise secured by or on behalf of the injured 13 patient related to the injuries treated by the health care 14 professional. If the verdict, judgment, award, settlement, or 15 compromise is to be paid over time by means of an annuity or 16 otherwise, any lien under this chapter shall be satisfied by 17 the party obligated to compensate the injured patient before 18 the establishment of the annuity or other extended payment 19 mechanism. 20 2. a. A settlement made by and between the patient and 21 the persons, entities, or insurers allegedly liable for the 22 injured patient’s damages shall not discharge the lien against 23 any money due or owing by such person, entity, or insurer to 24 the patient or relieve the person, entity, or insurer from 25 liability by reason of such lien unless any of the following 26 apply: 27 b. The settlement also provides for the payment and 28 discharge of such lien. 29 c. A written release or waiver of any such claim of lien 30 is signed by the health care professional and either of the 31 following apply: 32 (1) The written release or waiver is filed in the court 33 where an action has been commenced against the persons, 34 entities, or insurers allegedly liable for the injured 35 -2- LSB 2145HC (10) 84 rh/rj 2/ 5

H.F. _____ patient’s damages. 1 (2) The written release or waiver is delivered by certified 2 mail or restricted certified mail, as defined in section 3 618.15, or in person to such persons, entities, or insurers 4 allegedly liable for the injured patient’s damages, if no court 5 action has been commenced against the persons, entities, or 6 insurers allegedly liable for the injured patient’s damages. 7 3. a. After the filing and mailing of a health care 8 professional’s lien notice, any person, entity, or insurer 9 who makes any payment to an injured patient or to the injured 10 patient’s attorneys, heirs, or legal representatives as 11 compensation for the injury sustained from the accident or 12 intentional act without paying the health care professional 13 the amount of the health care professional’s lien recoverable 14 pursuant to section 582A.3, or so much thereof as can be 15 satisfied out of the money due under any final judgment or 16 compromise or settlement agreement, shall, for a period of one 17 year from the date of payment to such patient or the patient’s 18 heirs, attorneys, or legal representatives, be liable to such 19 health care professional for the amount of the health care 20 professional’s outstanding lien. The health care professional 21 may, within such one-year period, enforce the lien by filing an 22 action at law against such person, entity, or insurer making 23 any such payment. 24 b. In any action filed by a health care professional 25 pursuant to paragraph “a” to enforce the lien, the health care 26 professional shall be entitled to recover reasonable attorney 27 fees and the costs of any such action. 28 EXPLANATION 29 This bill creates the “Health Care Professional Lien Act”. 30 The bill provides that every health care professional 31 (defined under the bill as a physician or surgeon, osteopathic 32 physician or surgeon, podiatrist, and chiropractor) who renders 33 any service in the treatment, care, or maintenance of any 34 patient injured by reason of an accident or an intentional 35 -3- LSB 2145HC (10) 84 rh/rj 3/ 5

H.F. _____ act by a third party not covered by the workers’ compensation 1 Act shall have a lien upon all claims and causes of action 2 of the injured patient for the amount of the health care 3 professional’s charges up to the date of payment of damages 4 to the injured patient. The injured patient or the injured 5 patient’s legal representative or attorney is required to 6 notify the health care professional at the time services are 7 rendered, or as soon as practicable thereafter, that the 8 patient’s injuries were sustained in an accident or that were 9 the result of an intentional act by a third party. The lien is 10 not effective unless the notice containing the name and address 11 of the injured patient, the date of the accident or intentional 12 act, the name and address of the health care professional, and 13 the name of the party alleged to be liable to make compensation 14 to the injured patient is served on both the injured patient 15 and the party against whom the claim or right of action exists. 16 A copy of the notice is required to be mailed to the injured 17 patient’s attorney or legal representative. Payments under the 18 lien are to be made directly to the health care professional. 19 The bill provides that a health care professional’s lien 20 shall, from and after the time of the service of the lien 21 notice, attach to any verdict, judgment, award, settlement, or 22 compromise secured by or on behalf of the injured patient. If 23 the verdict, judgment, award, settlement, or compromise is to 24 be paid over time by means of an annuity or otherwise, the lien 25 shall be satisfied by the party allegedly liable to compensate 26 the injured patient before the establishment of the annuity or 27 other extended payment mechanism. 28 The bill provides that a settlement made by and between 29 the patient and the persons, entities, or insurers allegedly 30 liable for the injured patient’s damages does not discharge the 31 lien against any money due or owing by such person, entity, 32 or insurer to the patient or relieve the person, entity, or 33 insurer from liability by reason of such lien unless the 34 settlement also provides for the payment and discharge of 35 -4- LSB 2145HC (10) 84 rh/rj 4/ 5

H.F. _____ such lien or a written release or waiver of any such claim 1 of lien, signed by the health care professional, is either 2 filed in the court where an action has been commenced against 3 the persons, entities, or insurers allegedly liable for the 4 injured patient’s damages, or delivered by certified mail or 5 restricted certified mail, as defined in Code section 618.15, 6 or in person to such persons, entities, or insurers allegedly 7 liable for the injured patient’s damages if no court action has 8 been commenced. 9 The bill provides that after the filing and mailing of a 10 health care professional’s lien notice, any person, entity, or 11 insurer who makes any payment to an injured patient or to the 12 injured patient’s attorneys, heirs, or legal representatives as 13 compensation for the injury sustained without paying the health 14 care professional the amount of the health care professional’s 15 lien shall, for a period of one year from the date of payment 16 to such patient or the patient’s heirs, attorneys, or legal 17 representatives, be liable to such health care professional 18 for the amount of the health care professional’s outstanding 19 lien. The health care professional may, within such one-year 20 period, enforce its lien by filing an action at law against 21 such person, entity, or insurer making any such payment and 22 may, if such action is filed, recover reasonable attorney fees 23 and the costs of any such action. 24 -5- LSB 2145HC (10) 84 rh/rj 5/ 5