What a medical lien is
A medical lien is a legal claim by a provider against a patient’s recovery from a personal injury claim. When the case settles, the lien holder is entitled to be paid from the proceeds before the patient receives what is left, subject to the law and the terms of any agreement.
Lien or letter of protection?
Both let a patient be treated without paying up front. A letter of protection is an agreement. A lien is a legal claim, and in some places it exists by statute and in others by contract. Many providers use both. Read our guide on letters of protection to see the difference.
What the lien does not do
A lien is useful, but it has limits.
- It does not speed up the case
- It does not guarantee the case will settle or settle for enough to cover the bill
- It does not fix poor documentation or billing
State rules matter
Lien law is highly state specific. Some states give hospitals or certain providers statutory liens, others rely on contracts, and rules about reductions and priority vary. Talk to an attorney in your state before relying on a lien.
How providers get paid sooner
Some providers choose medical lien funding to get cash against lien-based balances rather than wait on the case. This guide is general information, not legal advice.
This page is general information, not legal, tax or financial advice. Any funding is subject to review and a written agreement.