I have a malpractice settlement and a letter came telling me something about a recovery of funds that had been paid.
Health Care Lawyer
They can't take 'all of the money' only that portion reflecting the care they have provided. Thus, if you were billed $5,000 and receive a settlement of $15,000 you would get $10,000.00 after they take back the $5,000 they paid for your care.
This is why it is important to make certain you have a skilled malpractice attorney involved in a case, they can 1) make certain that your damages are fully addressed in a settlement, and 2) can explain the outcome of a settlement before you agree to it.
I am licensed in New Mexico and Pennsylvania, and therefore any discussion of issues related to other states must considered within that context. In addition, my comments are not intended to create a legal representation but merely to respond to the limited facts presented by the question. Any opinion herein is not meant as a precise statement of legal rights or as a recommendation of any particular course of action. A more complete legal review can be obtained through local counsel.