McMeans v. Scripps Health,
No. D035486 (Cal. App. July 24, 2002)

The California Court of Appeals held that, under the Hospital Lien Act, a hospital's lien rights could not exceed the amount it agreed to accept from an insurance carrier as payment in full for the services provided (the amount the patient is indebted to the hospital). Accordingly, since one patient's insurance policy covered and paid for the procedures performed, and the hospital agreed to accept payment from the insurance company as payment in full, the hospital could not place a lien on a settlement that the patient received from a personal injury lawsuit. However, for two other patients whose insurance policies did not cover the procedures performed, the hospital had the right to place a lien on a settlement in order to recover the "reasonable cash value of the benefits."