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

HOW MUCH IS THAT? I’m not the only one who thinks that’s a great healthcare question …
Are U.S. Doctors Paid Too Much?
Confidentiality
Network Mapping Identifies Physician Influencers
Connected Health 2014: Market Leaders Have Leapt from Pioneers to Doers

 

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

Stay Connected

1.5KFollowersLike
4.5KFollowersFollow
2.8KFollowersPin
136KSubscribersSubscribe

Latest News

Sunnyside Dentistry For Children: A Pediatric Dentist’s Pacific Northwest Story
Sunnyside Dentistry For Children: A Pediatric Dentist’s Pacific Northwest Story
Dental health
March 19, 2026
How Expanding Outpatient Nursing Options Is Reshaping Career Trajectories
Career Nursing
March 18, 2026
health care workers working together
How an MBA Healthcare Management Online Program Equips Leaders for Tomorrow
Health
March 18, 2026
close up of hands holding baby feet
What to Record After a Preventable Birth Injury
Health care
March 14, 2026

You Might also Like

EHR adoption Stage 2
BusinesseHealthHealth ReformHospital AdministrationMedical RecordsPolicy & LawPublic Health

Despite High EHR Adoption Rates, Physicians Want Stage 2 Delay

June 6, 2013
BusinessHospital Administration

Reduce Hospital Readmission Rates or Else!

April 29, 2013

What Is the Penalty for a HIPAA Violation?

February 11, 2014

Medicare Is Lousy Insurance

May 2, 2011
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2025 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?