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JOSEPH KONDOS, Appellant, vs. UNDERWRITERS GUARANTEE INSURANCE COMPANY, Appellee.

3 Fla. L. Weekly Supp. 21a

Insurance — Personal injury protection — Action brought by insured against insurer after insurer refused to satisfy claim for lost wages on ground that hospital to whom insured allegedly assigned benefits had filed claim of lien against proceeds — Error to enter summary judgment in favor of insurer where insurer relied in substantial part on assignment of benefits, and there was no evidence in record of assignment of benefits form — Whether hospital which treated insured was public hospital entitled to lien for hospital care under special law to be determined on remand

JOSEPH KONDOS, Appellant, vs. UNDERWRITERS GUARANTEE INSURANCE COMPANY, Appellee. 15th Judicial Circuit in and for Palm Beach County, Appellate Division (Civil). Case No. AP 93-8647 AY. Opinion filed January 24, 1995. Appeal from the County Court for Palm Beach County; Jeffrey Colbath, Judge. Counsel: Michael S. Bendell, Boca Raton, for Appellant. Marc R. Ginsberg of Mandina & Ginsberg, Miami, for Appellee.

(ALVAREZ, J.) Joseph Kondos was injured as a result of a motor vehicle collision. Mr. Kondos received medical treatment for injuries received in the accident from Boca Raton Community Hospital. At the time of the collision, Mr. Kondos had personal injury protection insurance coverage with Appellee, Underwriters Guarantee Insurance Company (UNDERWRITERS). A bill for services by Boca Raton Community Hospital was rendered to Mr. Kondos. Mr. Kondos signed a form which assigned insurance benefits to Boca Raton Community Hospital. After some payments had been made by UNDERWRITERS to or on behalf of Mr. Kondos, the latter demanded that the remaining insurance coverage be paid to him in satisfaction of his claim for lost wages. UNDERWRITERS objected to payment because Boca Raton Community Hospital asserted it had filed a Claim of Lien against the proceeds. Thereafter, Mr. Kondos filed this suit against UNDERWRITERS alleging entitlement to the money remaining in personal injury protection benefits.

UNDERWRITERS filed a motion for summary judgment. Attached to the motion was a copy of the Claim of Lien, a copy of Chapter 57-1688, Laws of Florida, which provides that every person or entity operating a public hospital in Palm Beach County shall be entitled to a lien for all reasonable charges for hospital care, and a copy of the form by which Mr. Kondos assigned insurance benefits to Boca Raton Community Hospital.

UNDERWRITERS candidly admitted at oral argument that there was no evidence in the record of this assignment of insurance benefit form. For the reason that UNDERWRITERS relies on Mr. Kondos’ assignment of benefits in substantial part for the granting of its motion for summary judgment, this matter is reversed and remanded for further proceedings.

Since this matter is being remanded for further proceedings and UNDERWRITERS also relies in part for the granting of its motion for summary judgment upon the Claim of Lien filed by Boca Raton Community Hospital pursuant to Chapter 57-1688 (1), Laws of Florida, we feel compelled to comment. Chapter 57-1688 states in pertinent part:

Every individual …. operating a public hospital in Palm Beach County, Florida, shall be entitled to a lien for all reasonable charges for hospital care, treatment and maintenance of ill or injured persons upon any and all causes of action, suits, claims, counterclaims and demands accruing to the persons to whom such care, treatment or maintenance are furnished, or accruing to the legal representatives of such persons, and upon all judgments, settlements and settlement agreements rendered or entered into by virtue thereof, on account of illness or entered into by virtue thereof, on account of illness or injuries giving rise to such causes of action, suits, claims, counterclaims, demands, judgment, settlement or settlement agreement and which necessitate or shall have necessitated such hospital care, treatment and maintenance.

Chapter 57-1688 is a special law of this state intended for application solely to Palm Beach County. This enactment is a manifestation of the legislature’s concern for the public welfare to ensure that a public hospital receive compensation for their services and that they should not be reluctant to treat indigents. Hospital Board of Directors of Lee County v. Mc Cray, 456 So. 2d 936 (Fla. 2d DCA 1984). This special act statutorily creates a lien upon, among other things, settlements, claims and demands. Stated somewhat differently, this law provides the benefit of permitting the bill for medical services rendered by a “public hospital” to proceed to the head of the payment line. A “public hospital” has been defined “…. in general as an institution owned by the public and devoted chiefly to public uses and purposes.” West Coast Hospital Ass’n v. Hoare, 64 So. 2d 293 (Fla. 1953). A private hospital may be supported by appropriations by the state, the county or municipality without becoming a public hospital. Hughes v. Good Samaritan Hospital, 158 S.W. 2d 159 (Ky. 1942). Some historical perspective may be enlightening:

Public or private hospitals were unknown at common law. With a new era and changing conditions, the government and its political subdivisions entered into many new fields of human endeavor and activity, and government and the various subdivisions thereof have undertaken the management, ownership, control and regulation of hospitals and such hospitals are public hospitals, subject to reasonable regulation and control by the governing authorities.

… As distinguished from public or government hospitals, private hospitals had been in existence for a long period of time. They were organized by people with a social conscience and who desired to utilize their means and talents for research and for the relief of suffering humanity. The ownership, control and management of such hospitals were left with those who conceived and organized them or with the managing authorities provided for in the plan of organization and management. West Coast Hospital Ass’n, at page 298.

Upon remand it is incumbent upon the trial court to determine whether Boca Raton Community Hospital comes under the auspices of Chapter 57-1688. If the trial court determines that Boca Raton Community Hospital is a public hospital, then Chapter 57-1688 is applicable. If the trial court determines that Boca Raton Community Hospital is a private hospital, then Chapter 57-1688 is not applicable.

Appellant has moved this court for an award of appellate attorney’s fees. The motion is granted contingent upon Appellant being determined to be the prevailing party upon remand, in which case the trial court shall determine a reasonable fee.

REVERSED and REMANDED for further proceedings consistent with this opinion. (WENNET and COHEN, JJ., concur.)

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