FOR IMMEDIATE RELEASE
October 1, 2024
Contact: Priya Telang, 720-443-6435 , ptelang@cohealthinitiative.org
Katie Reinisch, 303-653-1009, katie@progressive-promotions.com
Colorado Department Releases Report on Hidden “Facility Fees”
New report highlights need for common-sense protections from hidden hospital charges
DENVER – Today, Colorado’s Department of Health Care Policy and Financing released the Hospital Facility Fee Report, confirming what Coloradans have been experiencing over the past several years – that hospitals and their providers have been adding unnecessary fees to patient visits that drive up costs.
In 2023, state legislators passed House Bill 23-1215, which placed limits on facility fees in the state and established a steering committee of consumers, payers, and providers to study the prevalence and use of facility fees by Colorado hospitals and their impact on consumers.
Today’s report conclusively shows that billing for facility fees has risen significantly in recent years and that patients who see a doctor affiliated with a hospital will pay almost double the amount in added fees compared to patients who receive care from an independent provider. Now that the problem is defined and confirmed by this report, it’s time for the Colorado General Assembly to act to protect healthcare consumers.
Between 2017 and 2022, facility fee billing has increased at a rate of 6.5 percent annually in the commercial market and a rate of 14.3 percent annually in the Medicare market. Considering that hospital outpatient department facility fees contribute 6.2 percent to premiums paid by employers and consumers, as these facility fee charges continue to increase, premiums and out-of-pocket costs will also continue to rise for consumers.
According to a recent report by Healthcare Value Hub, 83 percent of Coloradans are worried about affording health care right now and in the future. At a time when patients are already avoiding care due to high costs, these additional fees further drive up the cost for patients without improving the quality of their health care.
It’s no coincidence that these fees have increased at the same time big hospitals in Colorado are buying up independent providers at an unprecedented rate, which has stifled competition. These consolidations benefit hospitals’ bottom line and leave patients with fewer and more expensive health care options.
There are few limits or regulations on the amount hospitals and their providers can charge or when they can add hidden fees to medical care. This places additional financial stress on patients and makes health care more expensive for all Coloradans who either end up paying more in insurance premiums or makes healthcare even more inaccessible for those without insurance. Of course, families are unable to budget or plan for additional fees.
The report notes several net takeaways: fees don’t result in better outcomes for patients; fees create uncertainty and new barriers to affordability and accessibility; and fees line the pockets of big hospitals and encourage anti-consumer hospital consolidation.
The Hospital Facility Fee Report also demonstrates that there is more decision-makers can do to regulate how and when hospitals and their providers can impose extra fees on health care, so patients know what to expect when accessing medical care.
“When the 10 biggest hospitals and health systems account for approximately 80% of the total Hospital Outpatient Department facility fee reimbursement amounts, it’s clear this is a matter of profit, not patient care,” said Priya Telang, communications manager at the Colorado Consumer Health Initiative. “Facility fee charges concentrated in hospital systems with the most market power will only make consolidation trends worse, without increasing quality for patients. This report makes it clear: we need legislative action to regulate hospitals’ hidden fees and help consumers.”
“This report confirms what too many Coloradans have already experienced — paying astronomically high healthcare costs and getting hit with confusing hidden fees while the quality of care remains the same, said Austin Blumenfeld, Executive Director of Centennial State Prosperity. “It’s time for our elected officials to stop hospital chains from lining their pockets at our expense and protect Coloradans by enacting common-sense regulations so that residents know what to expect when seeking care.”
“We know from our extensive research that healthcare costs are one of the biggest challenges facing our small business community, and hospital facility fees have been a major contributor to this problem,” said Hunter Nelson, Colorado Director at Small Business Majority. “These facility fees are particularly challenging for our state’s more than 550,000 solo entrepreneurs, many of whom are low- or moderate-income individuals who are operating on thin margins. That’s why we supported legislation intended to curb the problem of hospital facility fees, and we’re not surprised to see that this report confirms small businesses are likely to benefit from hospital facility fee regulation.”
“Coloradans should not be burdened by facility fees that balloon already skyrocketing prices, often preventing them from accessing the critical health care they need,” said Melanie Kesner, Rocky Mountain Regional Director at Young Invincibles. “The findings in this report are unsurprising and underscore the urgent need to reduce barriers to affordable and accessible health care, starting with the elimination of hidden facility fees. Young adults already face immense challenges in obtaining and affording health coverage, and these fees only exacerbate the problem, keeping them from receiving necessary care. Legislative action is clearly needed to regulate facility fees and prioritize patient care.”
“This report shows what our communities have been telling us: that facility fees put Coloradans at risk of financial distress, and impact the ways in which they access health care in Colorado,” said Milena Castaneda, Policy Advocate at Colorado Center on Law and Policy. “Patients should be able to access the care they need, regardless of concerns of cost.”
“As a physician, I know that when patients start getting higher or surprise bills, they seek care less frequently, and facility fees are only making this issue worse,” said Dr. Nicky Joseph, Emergency Medicine Physician in the Denver metro area, and member of the Committee to Protect Health Care. “This report was an important first step in identifying the problem, but now we need Colorado lawmakers to help solve it. By reining in costly facility fees, leaders can improve patients’ ability to seek the care they need to remain healthy and thrive.”
“Lawmakers can protect patients by imposing limits on facility fees, requiring that health care providers report how and when they charge facility fees, and mandating that these charges be transparent, with providers disclosing the fee at the time the appointment is made and placing notices inside the facility,” said Liz Hagan, Director of Policy Solutions for United States of Care, which advocates on the state and federal level for affordable and accessible health care. “Several states, including Connecticut, Maryland, and Indiana, have acted to protect patients. Colorado lawmakers should ensure that no patient receives an unexpected fee or defers care because of unknown costs.”
“Right now, two-thirds of Americans are sacrificing their care and well-being because of healthcare costs,” said Dana Bacon, Senior Director, State Government Affairs for The Leukemia & Lymphoma Society. “Today’s report on facility fees should serve as a wake-up call to policymakers: more needs to be done to reduce the burden of facility fees and improve cost transparency for patients across Colorado.”
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