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.

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.

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

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