Facility Fee

Also called: Hospital Facility Fee, Institutional Fee

In plain English

A separate charge from a hospital or outpatient facility for using their building, equipment, and support staff — charged on top of your doctor's professional fee. This effectively means you get two bills: one from the doctor and one from the facility.

Real-world example

You see a cardiologist at a hospital-owned clinic. You receive two bills: $200 from the doctor (professional fee) and $350 from the hospital (facility fee) — even though you just had one appointment in one room.

Why this matters for your bill

Facility fees are one of the most confusing and controversial charges in medical billing. As hospitals buy up private practices, more patients are hit with facility fees for routine office visits. The same doctor visit can cost 2-3x more at a hospital-owned clinic versus an independent office.

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