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LB 1012

Provide for a lien for professional services rendered by a physical therapist

109th Legislature (2025-2026) Introduced by Ben Hansen

Nebraska bill creates legal liens allowing physical therapists to claim payment from patient insurance settlements or judgments for unpaid treatment services.

Referred to Health and Human Services Committee
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Bill Summary · LB 1012

Legislative bill overview

LB 1012 establishes a legal lien mechanism that allows physical therapists to claim payment for professional services rendered when patients fail to pay their bills. This creates a secured interest in potential insurance settlements or other recovery payments that patients may receive, similar to lien rights already held by hospitals and other healthcare providers in many states.

Why is this important

Physical therapists often provide ongoing treatment for patients who may lack immediate funds but expect insurance reimbursement or personal injury settlements. Without lien rights, therapists bear significant financial risk when patients don't pay, potentially forcing small practices to absorb substantial losses. This bill addresses cash flow challenges in physical therapy practices and may improve access to care by providing payment security.

Potential points of contention

  • Fairness concerns: Patients recovering damages from personal injuries could see a substantial portion diverted to lien claims, potentially leaving them with less compensation than expected after multiple healthcare liens stack up
  • Scope and prioritization: Dispute over whether physical therapist liens should have equal priority with hospital/physician liens, or how liens rank against other creditors in payment order
  • Implementation details: The filed amendment (FA668) suggests uncertainty about mechanics—questions may remain about notice requirements, dispute resolution procedures, and protections against excessive or erroneous lien claims

Compiled from official sources — confirm details with the bill’s official record.

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