As Amended by Senate Committee
Session of 1997
SENATE BILL No. 245
By Committee on Public Health and Welfare
10 AN ACT concerning hospital liens; amending K.S.A. 65-406 and repealing
11 the existing section.
13 Be it enacted by the Legislature of the State of Kansas:
14 Section 1. K.S.A. 65-406 is hereby amended to read as follows: 65-
15 406. (a) Every hospital
in the state of Kansas, which shall furnish furnishes
16 emergency, medical or other service to any patient injured by reason of
17 an accident not covered by the workmen's workers compensation act,
18 shall, if such injured party shall assert or maintain asserts or maintains a
19 claim against another for damages on account of such injuries, shall have
20 a lien not to exceed five thousand dollars ($5,000) upon that part going
21 or belonging to such patient of any recovery or sum had or collected or
22 to be collected by such patient, or by his such patient's heirs, personal
23 representatives or next of kin in the case of his such patient's death,
24 whether by judgment or by settlement or compromise.
25 (b) Such lien shall be to the amount of the reasonable and necessary
26 charges of such hospital for the treatment, care and maintenance of such
27 patient in such hospital up to the date of payment of such damages :
28 Provided, however , That this. Such lien shall not in any way prejudice or
29 interfere with any lien or contract which may be made by such patient or
30 his such patient's heirs or personal representatives with any attorney or
31 attorneys for handling the claim on behalf of such patient , his or such
32 patient's heirs or personal representatives : Provided further , That the.
33 Such lien herein set forth shall not be applied or considered valid against
34 anyone coming under the workmen's workers compensation act in this
36 (c) Such lien attaches only to the recovery allowed or awarded for
37 such hospital services for which the lien is claimed.
38 (d) In the event the amount of the lien or liens as defined by subsection
39 (a), and other general and special damages claimed by the injured person,
40 is larger than the actual amount of settlement or judgment in the personal
41 injury action, and the parties cannot agree on the distribution, the funds
42 generated by the judgment or settlement shall be submitted to the appro-
43 priate court for a determination of equitable pro rata distribution to par-
ties claiming an interest in the funds. In no event shall the pro rata eq-
2 uitable distribution to the injured party be inconsistent with the award
3 of damages established pursuant to K.S.A. 60-249a and amendments
4 thereto or K.S.A. 60-1903 and amendments thereto. Any hospital with a
5 properly filed lien shall be given reasonable notice of any hearing to ap-
6 prove a proposed settlement between the injured party and the tortfeasor
7 and shall be entitled to appear and be heard on any proposed allocation
8 of damages at such hearing.
9 (c) In the event the claimed lien is for the sum of $5000 or less
10 it shall be fully enforceable as contemplated by subsection (a) of
11 this section. In the event the claimed lien is for a sum in excess of
12 $5,000 the first $5,000 of the claimed lien shall be fully enforceable
13 as contemplated by subsection (a) of this section, and that part of
14 the claimed lien in excess of $5,000 shall only be enforceable to the
15 extent that its enforcement constitutes an equitable distribution of
16 any settlement or judgment under the circumstances. In the event
17 the patient or such patient's heirs or personal representatives and
18 the hospital or hospitals cannot stipulate to an equitable distribu-
19 tion of a proposed or actual settlement or a judgment, the matter
20 shall be submitted to the court in which the claim is pending, or if
21 no action is pending then to any court having jurisdiction and venue
22 of the injury or death claim, for determination of an equitable dis-
23 tribution of the proposed or actual settlement or judgment under
24 the circumstances.
25 Sec. 2. K.S.A. 65-406 is hereby repealed.
26 Sec. 3. This act shall take effect and be in force from and after its
27 publication in the statute book.