Hospital Facility Fees, Ethical or Not?

Seattle Mom Surprised by Hospital "Facility Fee".

SEATTLE - Caren Gillespie took her son into Childrens' Hospital recently, to the Dermatology Clinic to have a skin-care prescription refilled. They were in and out in 15 minutes. When she got her bill she found she owed a “Facilities Fee," more than $363 total, and about $245 after her insurance kicked in


Gillespie says it was the first she heard about any such fee and she’s not very happy about paying it.

“It was just surprising, you know? Kids are not inexpensive to just keep healthy,” she said.

But this kind of fee has become increasingly common in the medical industry in recent years, as hospitals cope with cuts to the reimbursement payments they get from the Federal Government and the State of Washington.

Senior Vice President Cindy Evans says Medicare and Medicaid cuts finally forced Childrens to charge the fee, starting last October.

"Really reached a fork in the road where we couldn't hold off any longer from implementing what is common practice in hospital-based clinics locally regionally and nationally," she said.

She also points out that patients who feel this is a financial hardship can apply for financial assistance to help deal with the facility fees. Patients are notified they will be billed those fees in appointment reminders, on the hospital website, and by signs posted at check-in stations.

Somehow Gillespie missed all that, and the charge for a 15-minute visit came as a shock. She says now that she knows about it, much as she likes Childrens’ and supports their mission, she’ll likely find somewhere else to fill that prescription next time.

“I like to know where my money is going and then I can make a decision. There are other specialists who don’t charge you to walk in their door,” she said.

Gov. Chris Gregoire signed a bill last week that will require hospitals to make it very clear those kind of charges could show up on bills for clinic visits. It also requires medical organizations to report those fees to the state on an annual basis.

King5.com