Facility fees raise revenue. And patient ire

by Julia Kyles on Oct 6, 2009

The revenue from the ability to charge a facility fee for patient services could be a boon for struggling practices. Or it could send patients running to a practice that doesn't pass on overhead costs to patients.

The Washington Post reports today that a little known Medicare rule allows certain practices and clinics to tack an additional charge on to services:

"Called "provider-based billing," it allows hospitals that own physician practices and outpatient clinics that meet certain federal requirements to bill separately for the facility as well as for physician services."

Even though Medicare implemented this rule, hospitals must apply provider based billing charges to all patients, the Post notes.

Based on the article, more patients are starting to see these charges and they aren't happy. When patients make appointments through the hospital, you might not have any control over what the appointment department tells them. But it couldn't hurt to post a notice at your front desk.

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