Medicare rules regarding “provider-based billing” allow some hospitals that own physician practices and outpatient facilities to bill patients for a separate facility fee in addition to physician services. Hospitals-affiliated physicians and facilities that bill Medicare patients for these services must then bill all patients such a fee, according to the report.
According to the report, many insurers will not cover these fees, but hospitals claim they are necessary to pay physician salaries and other overhead costs. However, consumer advocates argue that the fees unnecessarily increase healthcare costs. Advocates are pushing for more transparent pricing for healthcare fees, so that patients are aware when a facility fee will be charged.
Fees may range from $25 dollars upwards of $418, according to the report.
Read the Washington Post’s report on physician office facility fees.
