Consolidation in the health care system is leading to an increase in unexpected charges known as facility fees that patients are seeing on their bills. These fees cover overhead costs such as equipment maintenance, but their actual use by medical systems is often opaque. Christine Monahan of Georgetown University explained in an interview that as hospital networks acquire more independent practices, patients are more likely to pay these fees.
Facility fees can cover a wide range of costs, including things like staffing, security, CEO salaries, and even amenities like fancy artwork or gourmet food services. The amount of these fees can vary, with differences of several hundred dollars common between independent practices and hospital outpatient departments.
Patients may find themselves charged facility fees even for services that could be safely provided in an independent setting, leading to questions of fairness. Policymakers and some states are exploring ways to regulate these fees to ensure patients are not burdened with excessive costs.
Consumers may try to avoid hospital-owned facilities to reduce the likelihood of paying facility fees, or reach out to their insurer to negotiate lower bills. However, with hospitals increasingly acquiring outpatient practices, this may not always be possible.
Banning facility fees may lead medical systems to increase other costs, highlighting the broader issue of controlling hospital prices. Policy interventions and advocacy organizations may help patients navigate these challenges and advocate for fair billing practices.
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