Colorado hospitals collected $13 billion in facility fees over 6 years, new state report finds

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Colorado hospitals collected $13 billion in facility fees over 6 years, new state report finds
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The fees, which cover overhead costs, come in addition to cost of medical care by doctors and other providers.

A nurse checks medical equipments in preparation for a surgery on a 14 year old patient at Denver Health in Denver on Thursday, April 25, 2024. Colorado hospitals collected an estimated $13.4 billion in facility fees over a recent six-year period, doubling the average cost of care for patients with certain types of insurance, according to

The report estimated total spending on facility fees rose about 10% annually during that time, due to some combination of population growth, hospitals charging higher amounts and more locations charging the fees, among other factors. The authors didn’t take a position on what, if anything, Colorado lawmakers should do with that information, but said patients would inevitably pay for additional fees, whether out-of-pocket or through their monthly insurance premiums. They estimated that about 6% of the cost of premiums could result from facility fees.would have banned facility fees for care provided via telemedicine or in-person, but not on a hospital’s campus.

Someone in the insurance industry recommended pursuing “site-neutral payments,” meaning that payment for a service would be the same regardless of where the patient receives it The authors noted they couldn’t draw conclusions about how facility fees affected access to care and the stability of the health care workforce. The committee in charge of the report included four people working in different parts of the health care industry, a patient, a consumer advocate and one person employed by the Colorado Department of Health Care Policy and Financing.

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