Fiscal Note - SB 0423 - Hospital Liens on Personal Injury and Wrongful Death Claims
L.R. NO. 1423-01
BILL NO. SB 423
SUBJECT: Hospital Liens
TYPE: Original
DATE: March 18, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
University of
Missouri System* Unknown Unknown Unknown
Total Estimated
Net Effect on All
State Funds* Unknown Unknown Unknown
* Increased collections are unknown, but could exceed $500,000 in any given
fiscal year.
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
None
Total Estimated
Net Effect on All
Federal Funds $0 $0 $0
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Local Government Unknown Unknown Unknown
FISCAL ANALYSIS
ASSUMPTION
Officials from the Office of State Courts Administrator, the Office of the
Attorney General, the Department of Insurance, the Department of Health, and
the Department of Labor and Industrial Relations -- Division of Workers'
Compensation assume the proposed legislation would have no fiscal impact on
their agencies.
Officials from the University of Missouri System (d/b/a University Hospital &
Clinics) assume the proposal could increase their patient account collections
substantially, possibly in excess of $500,000 in any given year. The
University owns and operates University Hospital & Clinics and, in connection
with that operation, provides medical care and treatment for many victims of
automobile accidents and other injuries resulting from the negligence or
fault of persons other than the patients. This proposal would remove the
potential inconsistencies between the current language in Sections 430.230
and 430.235, particularly as it relates to the amount of the hospital lien.
Section 430.230 contains a limitation on the amount of a hospital lien,
whereas Section 430.235 does not limit the amount of the lien. To date, the
University has always been successful in placing all liens in accordance with
Section 430.235 which does not limit the amount of recovery. This proposal
would remove the inconsistencies and strengthen the University's position.
Current law does not allow hospitals to attach liens in wrongful death claims
brought by the survivors of a deceased patient. This proposal would enable
the University to utilize the hospital lien statute to enhance the likelihood
of recovering for medical care and treatment provided to patients who do not
survive their injuries. The University is unable to state with any
reasonable degree of certainty the amount of increased collections likely to
result from such a statutory change. However, as stated above, the
University assumes their increased collections could exceed $500,000 in any
given year.
Oversight assumes this proposal would result in an unknown increase in
collections for county and city owned hospitals, as they too would be able to
attach hospital liens to the estates of deceased patients. The amount of the
increased collections are difficult to determine; however, the total amount
could be substantial in a given fiscal year.
FISCAL IMPACT - State Government FY 1998 FY 1999 FY 2000
(10 Mo.)
UNIVERSITY OF MISSOURI SYSTEM
Revenue - Increased Hospital Collections Unknown* Unknown* Unknown*
* Total increased collections are unknown, but could exceed $500,000 in any
given fiscal year.
FISCAL IMPACT - Local Government FY 1998 FY 1999 FY 2000
(10 Mo.)
POLITICAL SUBDIVISIONS
Revenue - City and County Hospitals
Increased Hospital Collections Unknown** Unknown** Unknown**
** Total increased collections are unknown, but could be substantial in any
given fiscal year.
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of
this proposal.
DESCRIPTION
The proposal would remove Section 430.230, which provides that a hospital has
a lien against any claims relating to third party liability in an amount not
to exceed $25 plus incidentals per day. The hospital would retain the
ability to have a lien (unlimited in amount) and that lien would extend to
the estate of the claimant, should the person die.
This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.
SOURCES OF INFORMATION
Office of State Courts Administrator
Office of the Attorney General
Department of Insurance
Department of Health
Department of Labor and Industrial Relations -- Division of Workers'
Compensation
This Fiscal Note is not an official copy and should not be quoted or cited.