Oh my goodness, I'm glad you are okay. I cannot believe she was worried about the car and not you. I think, fault or not, my first thought would be with those involved. Material items can be replaced, bodies, people and body parts cannot.

I don't know what to tell you about your case other than like veogirl said, don't settle or talk to anyone until you talk to an attorney.
I mean, I am not a sue crazy person. I don't believe in all these people that sue for anything and everything little thing they can find, but you do have to protect yourself.

I would think that a bicycle or a pedestrian would always have the right of way as long as they are crossing or riding where they are suppose to. And they don't run or ride right out in front of you.
Anyway, good luck with your surgery, and let us know what happens.