If an injured person receiving hospitalization has a contract providing for indemnity or compensation for the sum incurred for hospitalization, the hospital has a lien upon the amount payable under such contract, and the party obligated to make reimbursement for the hospitalization under the contract may pay the sum due thereunder directly to the hospital, and such payment constitutes a release of the party making the payment under such contract to the amount of the payment. If the amount of the claim is contested, payment must be made to the clerk of the district court and is subject to all of the terms and conditions stated in section
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