Public Act 93-0051

SB274 Enrolled                       LRB093 03377 DRJ 03395 b

    AN ACT to amend certain Acts in relation to liens.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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