Connecticut’s Attorney General issued a report on April 16 concerning hospital acquisitions of physician practices and the facility fees charged by many hospital-acquired physician practices to patients. The acquisition of a physician practice by a hospital enables the hospital to bill separately for the physician’s professional services and for the use of the office or facility by means of a “facility charge.”

The AG conducted a survey of all 29 hospitals in Connecticut and found that 22 of the 29 charge facility fees for outpatient services, but fewer than half of the hospitals notified patients in advance that they would be charged a hospital facility fee in addition to a professional fee. The facility fees also apply to practice locations off the hospital campus. 

The Attorney General proposed two pieces of legislation to deal with facility fees and the growing trend of hospital acquisitions of physician practices. We will post updates on this blog as the legislation progresses.