Oregon Doctors Clash with Hospitals Over Bill to Slash Surprise Medical Fees

Oregon physicians and the Hospital Association of Oregon are pitted against each other in a squabble over the efficacy of a new Senate bill to protect patients from unexpected medical costs.

Senate Bill 539 prohibits hospitals or their health systems from charging, billing, or collecting facility fees for certain services. It also requires them to report facility fees charged to patients annually.

Tidings Data Snapshot
Facility fee price gap for a routine visit
217
Average price at a hospital outpatient clinic
116
Average price at an office based clinic
101
Typical added amount tied to the facility component
87%
Higher cost for the same type of visit in hospital outpatient settings

Source: Health Care Cost Institute / facility fees in outpatient care, commercial claims
Dailytidings.com

 

Physicians Believe Facility Fees Deter Patients from Seeking Medical Attention

Oregon physicians are in favor of the bill. They believe facility fees are deterrents to patients who resist seeking medical care because of unexpected costs.

However, the Hospital Association of Oregon (HAO) has expressed concern that withdrawing facility fees will negatively impact hospital administration costs. The result will be a deterioration in the level of patient care.

 

Loss of Facility Fees Could Lead to Hospital Closures

The HAO says hospitals do not operate in the same way as private physician practices and must manage patients with complicated medical needs and adhere to strict licensing rules. HB 539 could result in service reductions and hospital closures, particularly in rural areas.

Apart from providing a source of income to maintain services, facility fees also contribute to essential 24-7 emergency services.

With more than 50 percent of state hospitals running at a loss, resulting in service and staff reductions, the bill will add further strain to an already over-burdened essential community service, says the HAO.

Tidings Data Snapshot
Oregon hospital operating margins / recent snapshot
Negative margins / 45%
0 to 5% margins / 26%
5% plus margins / 29%

Source: Hospital Association of Oregon analysis citing KFF data / 2022 to 2024
Dailytidings.com

Conversely, physicians believe HB 539 will make health care more accessible, restore trust, and protect patients.

What SB 539 doesWhat SB 539 does not do

Limits when facility fees can be charged or collected for certain patient visits

Does not cap the doctor or clinician professional charge

Requires notice so patients can see when a facility fee may be billed

Does not remove copays or deductibles set by an insurer

Requires annual reporting on facility fees charged or billed

Does not automatically refund past facility fees

 

The Senate Health and Care Committee has passed the bill and it is now waiting for a Senate vote.

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  1. John says

    I’ve been a ER RN for 31 years, have done contracts from the Arctic to the Caribbean. The hospital industrial complex absolutely needs the DOGE BOYS to look into the books .

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