§ 5.4 County Healthcare Recovery Rights

JurisdictionArizona

§ 5.4 – County Healthcare Recovery Rights

Some injured patients receive care through county-operated medical facilities or private facilities contracted with Arizona counties. In those cases, the county has potential lien and subrogation rights.

a. The Scope of County Healthcare Recovery Rights

Arizona counties seeking recovery of medical expenses have several different statutory mechanisms available to them. Cf. AHCCCS v. Bentley, 187 Ariz. 229, 928 P.2d 653 (App. 1996) (concluding that multiple recovery statutes were “complementary rather than merely cumulative.”).

First, pursuant to A.R.S. § 11-291(E), the county is entitled to unilaterally impose a lien upon “any and all claims for damages” relating to a patient’s care or treatment, provided the county perfects its lien under § 36-2915.

Section 36-2915 requires recording a lien in the county recorder’s office in the county where the “injuries were incurred” and “within sixty days from the date of notification . . . of the hospital discharge or rendering of medical care and treatment.” A.R.S. § 36-2915(B) (emphasis added). While this lien includes “charges for any services provided,” the charges must be “reasonable.” See In re Estate of Miles, 172 Ariz. 442, 444, 837 P.2d 1177, 1179 (App. 1992).

Second, pursuant to A.R.S. § 11-291(F), the county enjoys a species of “assignment” that contemplates an injured person “shall assign to the county by operation of law that person’s rights to all types of medical benefits to which the person is entitled, including first party medical benefits under automobile insurance policies.” A.R.S. § 11-291(F) (emphasis added). This subsection provides “[t]he county has a right to subrogation against any other person or firm to enforce the assignment of medical benefits.” Id.

And third, a special provision of the Healthcare Provider Lien statute, A.R.S. §...

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