Lawmakers push reforms to curb Hidden facility fees in Michigan healthcare

Michigan patients are paying millions in hidden facility fees each year, a cost that is often buried in hospital bills and not publicly disclosed. The fees cover services such as laundry, computer networks, and security, and are added to outpatient services like labs and physicians’ offices. A bipartisan push in Lansing seeks to reform the practice by prohibiting the fees when care is provided at sites outside hospitals, telemedicine appointments, and some in-hospital outpatient services.

According to a 2022 estimate, facility fees added an average of $100 to primary care doctor bills, and the fees alone for Medicaid are easily tens of billions of dollars, a federal report notes. Hospitals argue the charges are essential to their survival, citing thin profit margins—2.6% nationally last year—and that 33 Michigan hospitals either lost money or operated at a 0% margin in 2024. Since then, three facilities—Sturgis, East China, and Ontonagon—have closed, and lawmakers warn that more could follow if fees remain unchecked.

State Rep. Curt VanderWall, R-Ludington, requested an itemized bill for a routine blood test in August, noting that he was charged a facility fee of nearly $75 for a single vial of blood. Rep. David Prestin, R-Cedar River, said the fee could destabilize standalone institutions in the Upper Peninsula if not addressed. The Patients Deserve Price Tags Act, sponsored by a current U.S. representative, would require hospitals to publish clear, upfront pricing, while Gov. Jocelyn Benson plans an online portal to report hospitals that don’t disclose costs.

Read the full story at bridgemi.com.