In Shelby County Health Care Corp. v. Nationwide Mutual Ins. Co. (filed Feb. 6, 2009) the Western Section held that Nationwide impaired a hospital lien by applying some of its insured's med pay proceeds to an ambulance bill. As a result, Nationwide was held liable for the entire hospital bill (close to $34,000) pursuant to Tenn. Code Ann. ยง 29-22-104(b)(1), despite the fact that the med pay coverage was only $5000 in the first place. See my February 10, 2009 post for a discussion of the decision and the implications if it is not reversed or modified by the Tennessee Supreme Court. The application for permission to appeal was granted November 2, 2009.
Dan Berexa
Nashville, Tennessee
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