By using this site, you agree to the Privacy Policy and Terms of Use.
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

An Online Market for Medical Care
PepsiCo Tries Medical Tourism
Is Your Doctor a Spin Doctor?
The Truth About Healthcare Around the World
Canadian Hospitals Twice as Risky as US Hospitals

 

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

Stay Connected

1.5KFollowersLike
4.5KFollowersFollow
2.8KFollowersPin
136KSubscribersSubscribe

Latest News

Veneers vs. Crowns vs. Bonding: Understanding Cosmetic Options
Veneers vs. Crowns vs. Bonding: Understanding Cosmetic Options
Dental health Specialties
June 23, 2026
dental implants
Dental Implants and Quality of Life: What the Outcomes Data Shows
Dental health Specialties
June 23, 2026
Why Outpatient Addiction Treatment Works Better Than Most People Expect
Addiction Addiction Recovery
June 20, 2026
grief affects brain
How Grief Affects The Brain And Body
Infographics Mental Health
June 19, 2026

You Might also Like

patient engagement
Hospital Administration

The Secret to Patient Engagement: More Engaging Physicians and Health IT

May 25, 2014
Drug Seeker Or Pain Patient? Preparing Your ER For Frequent Flyers
DiagnosticseHealthHospital Administration

Drug Seeker Or Pain Patient? Preparing Your ER For Frequent Flyers

March 21, 2018

Cancer Drugs: Why the High and Rising Prices?

April 10, 2015
BusinessNews

How To Choose The Right Dentist: Try These 6 Simple Steps

August 7, 2019
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?