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Originally Posted by CoachKandSportsguy
There are medical fees: doctor nurse drug charges.
There are facility fees: rent, maintenance, EMR costs.
The facility fees are the overhead costs associated with the building and the systems involved in operating in the medical world. Its separate because of how contracts are written, especially after the installation of EMR systems, and their ongoing costs and requirements for CMS reporting.
Not a scam, just separating charges. . with all other commercial companies, the labor rate usually includes the burdened overhead rate. for hospital billing, its now broken out as the doctor and the facility fees are different vendors.
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According to the article, the fee is being charged by doctors that have been bought out by hospitals. It doesn’t appear that the doctor’s costs have gone up.
Facility fees are commonly seen in hospital-owned outpatient clinics and are increasingly appearing in other outpatient settings when hospitals acquire physician practices.
Didn’t the doctor have rent and maintenance before they started charging facility fees?
This is like a hotel charging $300 a night for the room and then adding on a mandatory resort fee.
The doctor’s fee should be the total cost of providing services plus an added fee for profit.
If you start breaking everything down, the fees are endless.
If a doctor really wants to make money, the doctor could also add a fee for utilities, office cleaning, an office staff fee, a Christmas party fee, etc., etc.