Facility Fees
Page Updated: Aril 22, 2024
CHA Advocacy Principle: Policies should make health care more affordable for patients without jeopardizing access to care.
What Has Been Completed:
Origin: HB 23-1215 passed during the 2023 legislative session will have a direct impact on hospitals with new requirements related to preventive services, billing disclosures, and change of ownership. The bill also requires report to the General Assembly on the impact of hospital facility fees.
Outstanding Items:
Hospital Requirements
- Preventive Services: A provider or health system cannot charge, bill, or collect a facility fee directly from a patient that is not covered by a patient’s insurance for preventive health care services in accordance with state and federal law. This section does not apply to critical access hospitals, sole community hospitals (or affiliated clinics) in rural or frontier areas, or Denver Health.
- Billing Disclosures: Providers affiliated with or owned by a hospital or health system must provide a notice to patients that a facility fee may be charged at the time an appointment is scheduled as well as when the service is provided. Providers must also post signs in English and Spanish stating that the patient may be charged a facility fee.
- Change of Ownership: A health facility newly affiliated with or owned by a hospital or health system must provide written notice to each patient seen within the previous year noting the change of ownership and that the patient may be billed for a facility fee. Facility fees cannot be collected until at least 30 days after the notice is mailed.
Report
The bill requires a report on the impact of hospital facility fees in Colorado to be delivered to the General Assembly by Oct. 1, 2024. The report will be overseen by a steering committee that must include two hospital representatives – an individual designated by CHA and an individual representing a rural, critical access or independent hospital. The report will include an analysis of data from hospitals and health systems. The committee has been established and will meet at regular intervals over the next year to develop the report. Additional information on the committee can be found here.
Steering Committee
Per House Bill (HB) 23-1215, a steering committee has been established to develop a report on the impact of facility fees in Colorado. The two hospital representatives are Dan Rieber, chief financial officer at University of Colorado Hospital Authority, and Kevin Stansbury, CEO at Lincoln Health.
Resources:
Dates of Note:
- July 1, 2024: Hospitals must comply with billing disclosure and change of ownership transparency requirements
- Oct. 1, 2024: Report on facility fees due to General Assembly
CHA Staff Contact: Adeline Ewing, CHA manager, public policy, [email protected]