How do I deal with Automobile Accident Settlement Payment With A Lien on it?

I was in an automobile accident not too long ago and received medical treatment in the ER for some injuries. The claim has been issued a lien by the hospital on the settlement money and now that payment is about to be discharged the insurance company is giving me the option of cutting two separate checks, one for the hospital and another for me or one check made payable to both parties? What would be the consequences of getting one check payable to both parties?