Surprise Fees Follow Cleveland Clinic’s Florida Expansion: What Patients Need to Know

Unexpected Hospital Fees Cause Frustration Among Patients

In Port St. Lucie, Florida, residents were excited when the renowned Cleveland Clinic began opening hospitals and medical offices in their area. This nonprofit, known for its high-quality care, promised to boost the local healthcare system. But soon, many patients faced surprise bills that left them puzzled and upset.

Patients started receiving additional charges on top of their usual co-pays. For instance, a consultation with a neurosurgeon could now come with a $95 facility fee. Similarly, seeing a family medicine doctor might cost an extra $112, while a neurologist appointment could add $174 to the bill, compared to the previous $50 co-pay. The confusion stemmed from the introduction of “facility fees,” which are charges traditionally linked to inpatient stays but are now creeping into routine outpatient visits.

Brandy Macaluso-Owens, a social worker, found herself shocked when she received a $174 facility fee following a brief visit with a gastroenterologist. She noted, “I probably met with the doctor maybe as little as 15 minutes.”

The Cleveland Clinic claims these fees are necessary to maintain their standard of care and are in line with regulations. They argue that the fees help cover costs for their outpatient facilities, allowing them to continue providing compassionate care.

However, they aren’t alone in this practice. Facility fees have become increasingly common across the nation. More than half of all U.S. physicians are now employed by hospitals—this is a significant increase from just a quarter in 2012. This shift makes it harder for patients to find independent practices.

Recent trends highlight how these fees impact patients. High-deductible health plans are becoming the norm, meaning many people must pay more out-of-pocket before their insurance kicks in. A recent study found that from 2013 to 2023, the average deductible for employer-sponsored insurance rose by 47%. This trend puts added financial pressure on patients, with almost half stating they would struggle to pay an unexpected $500 medical bill.

Christine Monahan, an assistant research professor at Georgetown University, emphasizes the toll on patients: “People are getting really high bills for simple, routine care. They don’t expect to be paying high bills for this. And it’s not realistic to expect people to be able to afford this.”

As more patients report unexpected facility fees, some are refusing to pay them. Billie Paukune Boorman, a waitress, shared that she was charged a $174 facility fee for her daughter’s appointment, along with over $200 in other unforeseen charges. “I don’t have that kind of money lying around,” she stated.

Despite efforts to inform patients about these fees through letters and signs in the clinics, many patients claim they were unaware of potential increases in their charges. The clinic has sent out over 250,000 letters, but some patients, like Irene Rauch, faced shocking new costs. After previously paying just a $15 co-pay for a similar appointment, she suddenly received a $95 facility fee.

The situation has sparked discussions among patient advocates and insurance companies alike. Both groups argue that these charges inflate healthcare costs unnecessarily. While there have been attempts to regulate or limit facility fees, the hospital industry strongly defends them, citing the need to maintain essential services, especially in emergency departments.

Overall, as facility fees continue to burden patients, many feel the weight of rising healthcare costs and changing policies. The conversation around these fees remains critical as patients seek clarity and fairness in their medical billing experiences.

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