Sued for past medical bill(rights)

Six months ago I was having some medical problems my work insurance paid only 1/3 the cost of my stay in the hospital.
From that time I tried to get the insurance company to pay more would not. Since that time nothing was getting paid to the hospital that the money was owed to.

Now they are taking me to small claims to get the rest of the money. I had fell 3 months behind in my house payments and have paid hell getting them caught up and findly am after 4 months of giving the mortage company everything I made in the months to get this done. In the mean time the hospital has listen to me about this and that and I have told them that I would be able to send them money as soon as I have my house payments in order. How that they are I have make plans to send them 50 dollar every month till the amount of 2,300 is paid in full. I called a Dispute Resolution Service that was on the papers I recieved and they stated that they had no luck working things out with this hospital and that once they start court they finish court. My Question is, do I have any rights in this matter or am I going to have to paid the 2,300 all at once and lose my home because of this. I can prove that I can only afford to paid 50 dollars a month and nothing more.

Lets take these issues one at a time....

1) Your house:
Since you didn't follow the rules of this forum (See the RED text at the top of the screen... WHAT STATE!!!), I can only offer generic help. Most states protect your home (or a certain value) from forced sale from unsecured creditors, specially if your home is 'homesteaded'. If your home is NOT homesteaded, contact your tax or appraisal folks and file a homestead on it. Not only will this save you tax dollars, but it could protect your home from seizure.

2) Insurance:
You need to read your insurance policy and see what is covered and what isn't. You also need to know what deductibles you are responsible for. Then, with this knowledge, you should be able to review your hospital bills (be sure to get a bill detail from the hospital) and see what the insurance should have (or not) covered. (Note: hospital detail billing is notoriously fraught with errors so look CLOSELY. If you only used one of something, don't pay for the full box or bottle; that is one of their billing tricks.) Make sure that the insurance company has paid all that they are obligated to. If not, fight them.

3) Hospital:
You need to understand, YOU have primary responsibility for your bills, not your insurance company. Any amounts that they do not pay, you are obligated for. So, check the billing (see #2) and find out what you owe. Then, subtract what the insurance company HAS PAID (not will pay). That is the amount you currently owe the hospital. Contact them and make offer to make REASONABLE payments. How much 'extra' are you paying the mortgage company. As soon as that is paid, make arrangements for the same amount to the hospital. They are under no obligation to accept payments, but will usually entertain reasonable payment plan in lieu of the expense and hassle of litigation.

4) Court:
Based on your post, it sounds like you have little defense against an ACCURATE bill. You need to start NOW and examine the hospital bill (again, see #2 above) so that, in the event a judgment is rendered against you, you can be sure it is correct. Then, it sounds like you will be right back where you are now... trying to negotiate a payment plan for the judgment amount, plus costs, and plus attorney fees.