Hospital and physician lien
(1) Except as otherwise provided by law, whenever any person receives hospitalization or medical treatment on account of any injury, and the person, or the personal representative of the person after the death of the person, claims damages from the person causing the injury, then the hospital or any physician licensed under ORS chapter 677 who treats the injured person in the hospital or who provides medical services shall have a lien upon any sum awarded the injured person or the personal representative of the person by judgment or award or obtained by a settlement or compromise to the extent of the amount due the hospital and the physician for the reasonable value of such medical treatment rendered prior to the date of judgment, award, settlement or compromise. However, no such lien shall be valid against anyone coming under the Workers’ Compensation Act.
(2) When the injured person receiving hospitalization or medical care from a physician is the beneficiary of an insurance policy, including a policy that provides personal injury protection coverage or similar no-fault medical insurance but excluding a health insurance policy, that provides for payment of such hospitalization and medical care, both the hospital and physician shall have liens upon the amount payable under the insurance policy. If a hospital or physician has properly perfected a lien pursuant to ORS 87.565 (Notice of lien required) (2), the insurer obligated to make payment shall pay the sum due under the insurance policy directly to the hospital and physician in the amount due each for services rendered, and such payment shall constitute a release of the insurer making the payment to the extent of the payment.
(3) When there are insufficient funds to satisfy in full the liens of all hospitals and physicians claiming a lien created by this section, the insurer making the payment shall prorate the available funds without regard to the sequence of the filing of the notice of lien by the hospitals or physicians, and pay the hospitals or physicians in proportion to the amount due each for services rendered. [Amended by 1989 c.727 §1; 1999 c.146 §1]
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