Miller v. Lankenau Hospital, 152 Pa. Commw

In Miller v. Lankenau Hospital, 152 Pa. Commw. 266, 618 A.2d 1197 (Pa. Cmwlth. 1992), the Court evaluated the Department's appeal from a trial court's decision denying the Department's petition to open settlement and to permit intervention. A Medicaid beneficiary sued Lankenau Hospital and a trial court approved a settlement. A year after that order, the plaintiff notified the Department of the settlement, at which time the Department filed its motion. The Court, relying upon the language of Section 1409(b)(9) of the Code, reversed the trial court's decision. Section 1409(b)(9) states that "no .... settlement in any action or claim by a beneficiary to recover damages for injuries where the department has an interest, shall be satisfied without first giving the department notice and opportunity to perfect its lien." The Court reasoned that the Code does not require the Department to act until it receives actual notice of a proposed settlement.