Hospital outpatient clinics receive two different types of payments for the care they provide. Professional-service fees pay for the work of the physicians who treat patients. Every other health professional, service or other facet of the hospital – including nurses, techs, labwork, hospital infrastructure and more – is paid through hospital outpatient payments, known colloquially as facility fees.
Misconceptions that these fees are unnecessary overcharges have fueled recent legislative efforts to abolish them, which would carry catastrophic implications for access to care in Texas. A THA member survey conducted during the 2023 state legislative session found:
- 69% of Texas hospitals would close if hospital outpatient payments were outlawed;
- 85% would reduce staff; and
- 80% would reduce services.
THA’s grassroots advocacy helped defeat several bills targeting hospital outpatient payments in 2023. Hospitals will continue fighting to preserve access to care across Texas by defending their ability to bill for the cost of everything that makes outpatient services possible.
Resources
Texas: Don’t Dismantle Outpatient Hospital Care
A Threat to Hospital Payments is a Threat to Patient Care
