Provider liens arise by statute in some states and by contract through letters of protection in others. They attach to settlement or judgment proceeds rather than to the claimant personally.
Statutory liens require perfection; contractual liens depend on the agreement.
Alternative Names:
Provider Lien, Physician Lien
Why it Matters?
The distinction between statutory and contractual liens determines what defeats them, since statutory liens fail on perfection defects while contractual liens turn on the agreement's terms and whether the provider's charges are reasonable. Providers treating on lien frequently bill at rates well above what they accept from insurers, and that gap is negotiable at resolution. Verifying which type of lien is asserted is the first step.
Frequently Confused with
Related terms
Frequently asked questions
How do statutory and contractual provider liens differ?
Are lien charges negotiable?
