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PBS News Hour - Segments

Why patients are getting hit with surprise hospital fees for routine medical care

PBS News Hour - Segments

PBS NewsHour

News, Daily News

4.11K Ratings

🗓️ 12 April 2025

⏱️ 8 minutes

🧾️ Download transcript

Summary

In recent years, hospital systems have been buying up medical practices at a rapid pace. Now, patients getting routine medical care are being hit with high costs and unexpected hospital fees — even if they never visited a hospital. Special correspondent Megan Thompson reports. PBS News is supported by - https://www.pbs.org/newshour/about/funders

Transcript

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0:00.0

The next time you go to the doctor's office, you may not know whether or not they're affiliated with a hospital system.

0:07.7

If they are, your bill for a routine visit may include some surprising extra charges, fees that go to the hospital, even if you never stepped a foot inside it.

0:16.7

Special correspondent Megan Thompson has our report.

0:20.0

In 2016, Jess Ayers and her family move from New Jersey back to her home state of Minnesota.

0:25.6

Ayers said about making appointments with new doctors for her three children, especially her daughter who needed regular eye exams.

0:32.6

She was diagnosed with strabismus, which is essentially a lazy eye.

0:35.6

So they took her to an ophthalmology practice

0:38.4

at this clinic in Minneapolis that had been recommended by their old doctor in New Jersey.

0:43.4

After the checkup, Ayers was surprised to receive two bills, one for the physician's fee,

0:49.0

and one for hospital charges totaling $176. It was very puzzling and frustrating.

0:57.0

Had you gone to a hospital?

0:59.0

No, we had not gone to a hospital.

1:01.0

Right. This was a doctor's office.

1:03.0

Ayers discovered the doctor's office was part of a hospital system called M Health Fairview,

1:08.0

one of the largest health systems in the state.

1:16.3

So Ayers, who works in health care communications, had to pay something called a facility fee.

1:19.5

I was dumbfounded because I'd never heard of it.

1:23.6

And having worked in health care for a long time, I was taken aback.

1:29.5

She's not alone, says Christine Monaghan, an expert on facility fees at Georgetown University's Center on Health Insurance Reforms. Facility fees are particularly pernicious because that are these

1:35.2

high, often surprising bills that are not really adequately covered by our insurance.

1:41.5

Monaghan says hospitals have traditionally charged facility fees to help cover

1:45.5

their overhead costs, but more and more, they're charging the fees for routine outpatient care.

...

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