What are facility fees patients are being charged?

Facility fees are unexpected charges patients incur at hospital-owned doctors' offices that are not related to the medical treatment received.

Why are hospitals charging facility fees in doctors' offices?

Hospitals charge facility fees to help offset their high overhead costs, such as overnight care and specialized equipment, even in outpatient settings.

Are patients notified in advance about facility fees?

In many states, patients are not notified in advance about facility fees, leading to surprise charges on their medical bills.

Home / Business and Economy / Surprise Bills: Patients Face Hidden Hospital Fees

Surprise Bills: Patients Face Hidden Hospital Fees

31 Jan

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Summary

Patients are unexpectedly billed facility fees unrelated to their medical treatment.
These fees range from $25 to thousands of dollars, increasing healthcare costs.
Many states lack regulations requiring advance notification of these extra charges.

Surprise Bills: Patients Face Hidden Hospital Fees

Patients visiting doctors' offices owned by hospitals are increasingly being charged unexpected "facility fees." These charges, unrelated to the actual medical service received, can range from $25 to thousands of dollars and are appearing on bills for routine appointments like annual physicals or telehealth visits. These fees are designed to help hospitals cover their significant operational expenses, but they are now being applied even in outpatient settings after hospital acquisitions of independent clinics.

Consumer advocacy group U.S. PIRG highlights that these facility fees inflate medical costs and discourage people from seeking timely care. For example, Beth Davis of Ohio was billed $2,667.45, including a $2,418 facility fee, for a cortisone shot. Many states do not require hospitals to inform patients about these potential extra charges in advance, with some offering only a vague sign on the day of the appointment, by which time it is too late.