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Session of 2000
          SENATE BILL No. 550           By Committee on Financial Institutions and Insurance           2-2          

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  9             AN  ACT concerning liens upon personal injury damages recovered by
10             patients; amending K.S.A. 65-407 and 65-408 and K.S.A. 1999 Supp.
11             65-406 and repealing the existing sections.
12      
13       Be it enacted by the Legislature of the State of Kansas:
14             Section  1. K.S.A. 1999 Supp. 65-406 is hereby amended to read as
15       follows: 65-406. (a) Every hospital, which and every person licensed to
16       practice medicine and surgery, that furnishes emergency, medical or
17       other service to any patient injured by reason of an accident not covered
18       by the workers compensation act, if such injured party asserts or maintains
19       a claim against another for damages on account of such injuries, shall
20       have a lien upon that part going or belonging to such patient of any
21       recovery or sum had or collected or to be collected by such patient, or
22       by such patient's heirs, personal representatives or next of kin in the case
23       of such patient's death, whether by judgment or by settlement or
24       compromise.
25             (b) Such lien shall be to the amount of the reasonable and necessary
26       charges of such hospital or person licensed to practice medicine and sur-
27       gery for the treatment, care and maintenance of such patient in such
28       hospital or by such person up to the date of payment of such damages.
29       Such lien shall not in any way prejudice or interfere with any lien or
30       contract which may be made by such patient or such patient's heirs or
31       personal representatives with any attorney or attorneys for handling the
32       claim on behalf of such patient or such patient's heirs or personal rep-
33       resentatives. Such lien shall not be applied or considered valid against
34       anyone coming under the workers compensation act in this state.
35             (c) In the event the claimed lien is for the sum of $5000 $5,000 or
36       less it shall be fully enforceable as contemplated by subsection (a) of this
37       section. In the event the claimed lien is for a sum in excess of $5,000 the
38       first $5,000 of the claimed lien shall be fully enforceable as contemplated
39       by subsection (a) of this section, and that part of the claimed lien in excess
40       of $5,000 shall only be enforceable to the extent that its enforcement
41       constitutes an equitable distribution of any settlement or judgment under
42       the circumstances. In the event the patient or such patient's heirs or
43       personal representatives and, the hospital or hospitals, and the person or

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  1       persons licensed to practice medicine and surgery cannot stipulate to an
  2       equitable distribution of a proposed or actual settlement or a judgment,
  3       the matter shall be submitted to the court in which the claim is pending,
  4       or if no action is pending then to any court having jurisdiction and venue
  5       of the injury or death claim, for determination of an equitable distribution
  6       of the proposed or actual settlement or judgment under the
  7       circumstances.
  8             Sec.  2. K.S.A. 65-407 is hereby amended to read as follows: 65-407.
  9       No such lien shall be effective unless a written notice containing an item-
10       ized statement of all claims, the name and address of the injured person,
11       the date of the accident, the name and location of the hospital, or if the
12       lien is sought by a person licensed to practice medicine and surgery, the
13       location of the office where such person treated the injured person, and
14       the name of the person or persons, firm or firms, corporation or corpo-
15       rations alleged to be liable to the injured party for the injuries received,
16       shall be filed in the office of the clerk of the district court of the county
17       in which such hospital is located, or if the lien is sought by a person
18       licensed to practice medicine and surgery, the clerk of the district court
19       of the county in which such person treated the injured person, prior to
20       the payment of any moneys to such injured person, his attorneys or legal
21       representatives, as compensation for such injuries; nor unless the hospital
22       or person licensed to practice medicine and surgery shall also send, by
23       registered or certified mail, postage prepaid, a copy of such notice with
24       a statement of the date of filing thereof to the person or persons, firm or
25       firms, corporation or corporations alleged to be liable to the injured party
26       for the injuries sustained prior to the payment of any moneys to such
27       injured person, his attorneys or legal representative, as compensation for
28       such injuries. Such hospital or person shall mail a copy of such notice to
29       any insurance carrier which has insured such person, firm or corporation
30       against such liability, if the name and address shall be known. Such hos-
31       pital or person shall also send, by registered or certified mail a copy of
32       such notice to such patient upon whom emergency medical or other serv-
33       ice has been performed, if the name and address of such patient shall be
34       known to the hospital or the person licensed to practice medicine and
35       surgery or can with reasonable diligence be ascertained.
36             Sec.  3. K.S.A. 65-408 is hereby amended to read as follows: 65-408.
37       Any person or persons, firm or firms, corporation or corporations, in-
38       cluding an insurance carrier, making any payment to such patient or to
39       his attorneys or heirs or legal representatives as compensation for the
40       injury sustained, after the filing and mailing of such notice without paying
41       to such hospital or person licensed to practice medicine and surgery the
42       amount of its lien or so much thereof as can be satisfied out of the moneys
43       due under any final judgment or compromise or settlement agreement,

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  1       after paying the amount of any prior liens, shall, for a period of one year
  2       from the date of payment to such patient or his such patient's heirs,
  3       attorneys or legal representatives, as aforesaid; be and remain liable to
  4       such hospital or person for the amount which such hospital or person was
  5       entitled to receive as aforesaid; any such association, corporation or other
  6       institution maintaining such hospital may, within such period, enforce its
  7       lien by a suit at law against such person or persons, firm or firms, cor-
  8       poration or corporations making any such payment. 
  9       Sec.  4. K.S.A. 65-407 and 65-408 and K.S.A. 1999 Supp. 65-406 are
10       hereby repealed.
11        Sec.  5. This act shall take effect and be in force from and after its
12       publication in the statute book.