Proposed Law Would Allow Doctors/Physicians to File Mechanics Liens Against Real Estate in CT

While more people now have health insurance under the Affordable Care Act, many of their policies came with large deductibles. These deductibles are commonly between $2,500.00 and $6,000.00. Any deductible amount is due from the patient to the doctor or physician providing the healthcare services.

It is mandatory for the doctors to attempt to collect these fees, and necessary for them to so for the health of their business. For patient this creates financial strain beyond the monthly payments they are already making.

The Connecticut General Assembly is now considering a Bill which would greatly expand the range of materials and services for which a mechanic’s lien could be filed. Currently, the law allows a mechanic’s lien to be filed for materials and services in connection with site development of land or construction of a building.

The proposed law, SB887, would expand the services to include “any other service rendered to an owner of land.” Under this proposed law, a doctor rendering medical services to a person owning land could file a mechanic’s lien against the land if the doctor’s bill was not paid. The doctor would have 90 days after treating the patient to file the lien, and the lien would take priority over any mortgage or transfer which occurs within that 90-day period.

When buying a home or commercial property, it is common for the Seller to sign an “owners affidavit”, stating that no work had been performed on the property in the last 90 days that could lead to a claim against the property. This was done to provide the Buyer, and their Lender, with assurances that the no fresh liens would arise against their interest in the property once it was conveyed. Now, with doctors and other service providers being able to file mechanic’s liens, there would be no way to protect purchasers and mortgage lenders against claims by service providers for services that are not related to improvements on the property.

Connecticut Increases Filing Requirements for Hospitals and Large Medical Groups

Hospitals and Large Groups Must File with Attorney General

In a new law that came into effect on October 1st, the State of Connecticut is increasing filing requirements for hospitals and large medical practices of eight or more physicians. Public Act Number 14-168, titled “An Act Concerning Notice of Acquisition, Joint Ventures, Affiliations of Group Medical Practices and Hospital Admissions, Medical Foundations and Certificates of Need.”, will require incidence and yearly filings for hospitals and medical practices that are making changes to their business or corporate structure.

First, the law requires that any group or hospital given written notice to the Attorney General within 30 days of any change in corporate or business structure if:

  1. The merger, consolidation or affiliation of a group practice with a hospital or another group practice resulting in a group of eight or more doctors;
  2. The acquisition by one group of all or substantially all of the property, assets, stock or membership interest in a hospital or another group resulting in a group of eight or more doctors;
  3. The employment by one group of all or substantially all of the physicians of a hospital or another group resulting in a group of eight or more physicians; and
  4. The acquisition of an insolvent group practices by another hospital or another group practice resulting in a group of eight or more doctors.

The written notice shall identify each party to the transaction and explain the material change in the business or organizational structure. More specifically, the notice must include a description of the nature of the proposed relationship, the names and specialties of each physician, the names of the business entities under which medical services will be provided after the change, the address of each location at which the medical services will be rendered, a description of the medical services that will be provided at each location, and the primary service area that will be covered by each location.

The new law also demands a yearly follow up filing, to be filed no later than December 31 of each year, detailing the same information as is required on the initial filing. However, the follow up filings are limited to hospitals and group practices of thirty or more physicians only.

Due to the recent changes in the medical industry, many physicians have joined hospital systems or formed medical groups, to share risk and expenses. This new law seeks to gain information on these larger medical service providers, and to keep updated records on their hospital or group size, the services they render, and the areas they cover, by placing the burden of providing this information on the medical service providers themselves.

The Law Office of Eugene Glouzgal is proud to specialize in the legal business needs of Connecticut’s medical services providers. If you are a medical services provider in Connecticut and need assistance in creating your business entity and acquiring licenses and/or staying current with the mandatory filings of the State of Connecticut, please contact us today to discuss our legal consulting services.