Patient Michele Vincent was charged $924 in facility fees after receiving a cortisone shot at a hospital in New Britain, Connecticut. She felt blindsided by the charge, which was in addition to the $225 she expected to pay for the doctor’s services.

Facility Fees on the Rise

Facility fees, like the one Vincent received, are becoming increasingly common due to consolidation in the healthcare industry. Hospitals and health systems own many clinics, and they collect fees to cover operational expenses, such as building maintenance and equipment.

Advocates for healthcare reform have criticized facility charges, saying they cause confusion for patients and can lead to medical debt. Colin Reusch, director of policy at Community Catalyst, a nonprofit that advocates for health justice, stated that people should not be charged facility fees when they are not entering the hospital.

Connecticut’s Restrictions on Facility Fees

Connecticut has some of the tightest restrictions on facility fees in the country. The state prohibits hospitals from charging facility fees for certain routine services at off-campus locations. However, exceptions still exist for emergency departments and certain on-campus visits.

Despite these restrictions, revenue from facility fees in Connecticut has grown in recent years, topping $2 billion in 2024. The state’s Office of Health Strategy (OHS) collects data on facility fee revenue each year, but the information has limitations, and analysts often need to ask hospitals for more information to determine whether certain charges are prohibited.

Dr. Dinesh Kapur, who runs an independent oncology practice in the state, believes that hospital consolidation is to blame for the rising facility fees. He stated that when hospital systems buy up independent practices, patients are more likely to be charged facility fees.

Original reporting: The Connecticut Mirror — read the source article.