26 December 2009

A proposal to make hospitals disclose "facility fees"

"Most hospital-owned clinics in south-central Wisconsin charge the fees at least some of the time, at an average of $117... Patients who are aware of the fees can sometimes avoid them by going to other clinics... But most patients don't know about the fees, and some learn about them only after receiving their bills....

Pam Charles, of Beloit, said she went to the Park Street clinic complex next to Meriter Hospital to get second and third opinions on whether she needed surgery.

For both visits, she said, she parked in the same lot and used the same elevator. On one visit, she turned right. On the other, she turned left.

Her bill for the first visit, at a clinic owned by UW Health's doctor group: $216. The bill for the other visit, at a clinic owned by Meriter: $423, including a $157 facility fee from Meriter...

Hospitals have been allowed to charge facility fees under Medicare rules for years... the fees enable hospitals to recover some of the costs of their equipment and of meeting requirements that doctors' offices don't face, such as patient safety standards...

UW and Meriter have signs, brochures and letters explaining the fees, but none of the Madison hospitals tell patients about the fees when appointments are made, the hospital officials said..."

Above text from an article at the Wisconsin State Journal. The proposed legislation will also require insurance plans to disclose to patients whether they cover facility fees.

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