IC 12-24-15
    Chapter 15. Legal Process for Recovery of Treatment andMaintenance Charges

IC 12-24-15-1
Lien upon real property of patient and responsible parties;recording; priority
    Sec. 1. The liability created by this article for payment of any typeof cost of treatment and maintenance of a patient constitutes a lienupon the real property of the patient and responsible parties of thepatient whenever the lien has been recorded according to thischapter. The lien has priority over all liens subsequently acquired.
As added by P.L.2-1992, SEC.18.

IC 12-24-15-2
Delinquent charges; notice of lien; filing; requisites
    Sec. 2. (a) If charges for the cost of treatment and maintenance ofa patient remain unpaid in whole for three (3) months or in part forsix (6) months, the appropriate division may file, in the office of thecounty recorder of the county in which the real property is located,the following:
        (1) A notice of lien designating the name and place of residenceof the patient or responsible party against whose property thelien is asserted.
        (2) The date when the charges became delinquent.
        (3) A legal description of the real property subject to the lien.
    (b) The county auditor or assessor of a county shall, upon requestby the division, do the following:
        (1) Give notice of all real property in the county registered tothe patient or responsible parties.
        (2) Furnish the division the legal description and address of allproperty so registered.
    (c) One (1) copy of the notice of lien shall be retained by and filedin the offices of the division, and one (1) copy shall be furnished tothe patient or responsible party whose real property is affected.
As added by P.L.2-1992, SEC.18.

IC 12-24-15-3
Notice of lien; effect of filing; duration
    Sec. 3. (a) From the date on which the notice of lien is recordedin the office of the county recorder, the notice of lien:
        (1) constitutes due notice of a lien against the patient orresponsible party or the patient's estate for any amount thenrecoverable and any amounts that become recoverable underthis article; and
        (2) gives a specific lien in favor of the division.
    (b) The lien continues from the date of filing until the lien issatisfied or released.
As added by P.L.2-1992, SEC.18.
IC 12-24-15-4
Notice to division director of opening of a decedent's estate in thecounty; enforcement suit; judgment lien
    Sec. 4. (a) The clerk of the circuit court for each county shall givenotice to the director of the appropriate division of the opening orcommencement of a decedent's estate in the county.
    (b) The attorney general shall, upon notification by the division,bring suit in the name of the state on relation of the division againstthe estate of the patient or a responsible party failing to makepayments as required under this article.
    (c) If a judgment is obtained in a suit brought under subsection(b), the judgment constitutes a lien against the part of the estate ofthe person described in the complaint.
As added by P.L.2-1992, SEC.18.

IC 12-24-15-5
Suit to enforce payment of maintenance charges; order;attachment; costs
    Sec. 5. (a) The attorney general may bring suit against:
        (1) the patient;
        (2) the responsible parties of the patient; or
        (3) the legal guardian of the patient;
for failure to comply with a maintenance agreement established orfor failure to make a maintenance agreement. Suit may be broughtfor the amount due the state for the maintenance charges of thepatient.
    (b) The court may order the payment of amounts due formaintenance charges for the periods that the circumstances require.The order may be entered against any of the defendants and may bebased upon the proportionate ability of each defendant to contributeto the payment of sums representing maintenance charges.
    (c) Orders for the payment of money may be enforced byattachments as in contempt proceedings against the defendants, andcosts may be adjudged against and apportioned among thedefendants.
As added by P.L.2-1992, SEC.18.

IC 12-24-15-6
Claim against estate of patient or responsible party underconditions of IC 12-24-13; limitation of actions
    Sec. 6. (a) Except as provided in subsection (b), the absence of asuit authorized in section 5 of this chapter does not bar a divisionfrom enforcing its claim against the estate of a patient or theresponsible parties of the patient if the conditions of IC 12-24-13have been met.
    (b) A claim against a patient or the responsible parties of thepatient becomes void on the tenth anniversary of the patient'sdischarge if the diagnosis of the patient was mental illness ordevelopmental disability, or both.
As added by P.L.2-1992, SEC.18. Amended by P.L.81-1994, SEC.1.
IC 12-24-15-7
Foreclosure of lien; proceedings
    Sec. 7. The attorney general may bring proceedings in foreclosureon a lien arising under this chapter during the lifetime of the patientor responsible party when, in the opinion of the director, it is in thebest interest of the division to foreclose on the lien.
As added by P.L.2-1992, SEC.18.

IC 12-24-15-8
Claim against estate of patient or responsible party to recoverunpaid treatment and maintenance charges; property subject tolien; priority; conditions
    Sec. 8. (a) Upon the death of a patient or responsible party whoseproperty is encumbered by a lien arising under this chapter and uponnotification by the director, the attorney general shall file a claim inthe estate of the patient or responsible party for recovery of allcharges for treatment and maintenance that have accrued at the dateof death.
    (b) Notwithstanding any other law, a claim filed for recovery ofcharges for treatment and maintenance has priority in order ofpayment from the estate over all other claims except prior recordedencumbrances, taxes, reasonable costs of administration, andreasonable funeral expenses.
    (c) If the real property of the deceased patient or responsiblerelative is occupied by a surviving spouse of the patient orresponsible party, the director may not assert a lien or claim duringthe lifetime of the surviving spouse, except as provided in subsection(d).
    (d) The division shall file a claim for recovery of costs oftreatment and maintenance if:
        (1) another claimant or person has opened an estate and isattempting to enforce a claim; or
        (2) a fraudulent attempt is made to avoid the claim or lien.
As added by P.L.2-1992, SEC.18.

IC 12-24-15-9
Claim against estate of patient or responsible party to recoverunpaid treatment and maintenance charges; priority
    Sec. 9. (a) Upon the death of a patient or a responsible party of thepatient who is indebted to the state for any unpaid maintenancecharges, whether or not secured by a lien, the attorney general shallfile a claim against the estate of the patient or any responsible partyfor recovery of all charges for treatment and maintenance that haveaccrued at the date of death.
    (b) Notwithstanding any other law, a claim filed under this sectionhas priority except prior recorded encumbrances, taxes, reasonablecosts of administration, and reasonable funeral expenses.
    (c) Limitations of actions do not bar a division, except:
        (1) as to sureties; and
        (2) as provided in section 6 of this chapter.As added by P.L.2-1992, SEC.18. Amended by P.L.81-1994, SEC.2.

IC 12-24-15-10
Compromise agreements
    Sec. 10. The governor may, with the approval of the attorneygeneral, agree to accept a lesser payment than that established by thisarticle if it is found after investigation that the estate of a patient orresponsible party is insufficient to pay the amount established.
As added by P.L.2-1992, SEC.18.

IC 12-24-15-11
Pending litigation or rights accrued before June 1, 1981,unaffected; limitation of actions
    Sec. 11. This article does not affect any pending litigation orrights or privileges that accrued before June 1, 1981. However, aclaim for services provided before June 1, 1981, against a patient orthe responsible parties of the patient becomes void on the tenthanniversary of the patient's discharge if the diagnosis of the patientwas mental illness or developmental disability, or both.
As added by P.L.2-1992, SEC.18. Amended by P.L.81-1994, SEC.3.