Facility fees explained — what they are and when to question them

What facility fees are

A facility fee is a charge levied by a hospital or hospital-owned outpatient clinic for the use of the facility itself — the space, equipment, nursing staff, and administrative overhead. It is separate from the physician's professional fee for the service provided.

Facility fees commonly appear for outpatient services at hospital-owned clinics — including physical therapy, lab work, mental health visits, and even routine primary care appointments if the doctor's office is owned by a hospital system.

When they apply

Facility fees can apply any time you receive care at a hospital-owned facility — including outpatient locations that do not look like a hospital. If the clinic or practice was acquired by a hospital system, it may now charge facility fees that the same location did not charge before the acquisition.

Can you question them?

Facility fees are legitimate charges when properly disclosed. However, some states require advance notice of facility fees before they can be collected. If you were not informed that a facility fee would apply, you may be able to dispute the charge.

A note on this guide

General information only. Not legal or medical advice.