LANSING, Mich. — Lansing lawmakers are advancing bipartisan proposals to limit hospital facility fees charged for care at off-site clinics, labs, and telemedicine visits after reporting showed patients often pay extras buried deep in bills.
State Rep. Curt VanderWall, R-Ludington, said an itemized blood draw billed a facility fee on each of three vials, nearly $75 extra in one case, after hearing from constituents whose doctor offices were bought by large systems.
Facility fees added an average of $100 to primary care doctor bills in 2022 in one estimate, and hospitals argue the charges cover laundry, networks, and security while many operate on thin margins. Thirty-three Michigan hospitals lost money or posted a 0 percent margin in 2024, and three of those facilities later closed.
State Rep. David Prestin, R-Cedar River, warned that restricting fees could tip struggling Upper Peninsula hospitals toward closure. The largest hospital systems would not disclose how much they collect in facility fees despite repeated requests, and the state does not track the totals.
West Michigan patients who use Grand Rapids hospital systems for outpatient labs and physician offices are among those who can see facility fees appear on bills even when care never happens inside a hospital tower.
