We use cookies, including third-party cookies from Google to serve personalized ads through AdSense, to operate this site and understand how it is used. By continuing to browse, you accept this use. See our Privacy Policy and Terms of Use for details, including how to opt out of personalized advertising.
Accept
Health Works CollectiveHealth Works CollectiveHealth Works Collective
  • Health
    • Mental Health
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: More Facility Fee Dysfunction: Infused Drugs
Share
Notification Show More
Font ResizerAa
Health Works CollectiveHealth Works Collective
Font ResizerAa
Search
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Business > Finance > More Facility Fee Dysfunction: Infused Drugs
BusinessFinanceHospital Administration

More Facility Fee Dysfunction: Infused Drugs

DavidEWilliams
DavidEWilliams
Share
3 Min Read
SHARE

Hospital facility fees are getting more attention these days. When hospitals acquire physician offices they often initiate the lucrative practice of tacking on a substantial facility fee to office visits. This has been happening for some time but payers have been asleep at the switch. It’s only recently that the fees have bubbled up in the public consciousness, and that’s largely because more people have high deductible health plans that actually hit them with part of the costs.

Hospital facility fees are getting more attention these days. When hospitals acquire physician offices they often initiate the lucrative practice of tacking on a substantial facility fee to office visits. This has been happening for some time but payers have been asleep at the switch. It’s only recently that the fees have bubbled up in the public consciousness, and that’s largely because more people have high deductible health plans that actually hit them with part of the costs. It’s also more noticeable when an office switches ownership and the only thing that changes is the name on the door and the facility fee on the bill. I’ve written on the topic here and the Boston Globe had an extensive article over the weekend.

But these article don’t capture the whole facility fee story. As AIS Health describes, when patients have infusions done in hospital outpatient departments rather than physician offices the reimbursable amount may be double for the same service.  The facility fee can be an important component of that difference. And we’re thousands of dollars per visit here; it’s not peanuts. Yet surprisingly it’s common for health plans to charge coinsurance for the cheaper physician office setting and nothing for the hospital, thus encouraging patients to take the hospital route.

I chuckle when I hear free-market ideologues talk about how unleashing the competitive forces of commercial health plans is going to drive costs down, when it has clearly failed to do so in the commercial market. Actually the folks who are doing something about the facility fee problem (according to the Globe report) are the Medicare Payment Advisory Commission and Massachusetts’ new Health Policy Commission.

More Read

The latest iteration of the Neuron shown at HIMSS14 becomes a vital signs monitor with plug in sensors.
HIMSS 2014 in Review
The Loophole That’s Made Cancer Drugs Profitable Again
Price Transparency in Medical Care
Partnering Patients and Providers for Healthcare Technology Innovation
How to Build the Right ICD-10 Team

 

TAGGED:facility fees
Share This Article
Facebook Copy Link Print
Share

Stay Connected

1.5KFollowersLike
4.5KFollowersFollow
2.8KFollowersPin
136KSubscribersSubscribe

Latest News

What Geographic and Specialty Variation Reveals About How Nursing Compensation Actually Works -- AI-generated illustration
What Geographic and Specialty Variation Reveals About How Nursing Compensation Actually Works
Career Nursing
August 27, 2026
Could Poor Ventilation Be Behind Your Afternoon Headaches?  -- AI-generated illustration
Could Poor Ventilation Be Behind Your Afternoon Headaches? 
Health
August 27, 2026
The Myth That Keeps People Stuck -- AI-generated illustration
The Myth That Keeps People Stuck
Addiction Recovery
August 25, 2026
What Hospitals Need to Know About EU MDR -- AI-generated illustration
What Hospitals Need to Know About EU MDR
Business Hospital Administration
August 18, 2026

You Might also Like

getting patient referrals
BusinessFinanceHospital Administration

Why Most Patients Don’t Make Referrals (and How to Fix That)

May 4, 2014
expensive medicine
Business

Whining About the Thousand-Dollar Pill

August 12, 2014
Clinical Trial Recruitment
BusinesseHealthSocial Media

Steps for Attracting Patient Participants in Clinical Trials

December 14, 2014

Delivering High Quality Healthcare: Measure, Improve, Measure Again

April 28, 2014
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2026 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?