Maryland Medical System Settled Fee Lawsuit

The University of Maryland Medical System Corporation will pay $2.25 million to patients for facility fees.

Updated on Sept. 25, 2026 in Healthcare

Maryland Medical System Settled Fee Lawsuit

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The University of Maryland Medical System Corporation reached a settlement with the Maryland Attorney General to provide $2,251,781.52 in restitution to patients. The agreement resolves concerns regarding inadequate disclosure of facility fees charged at certain hospital clinics.

Why it matters

The settlement addresses claims that patients were not sufficiently informed about additional costs for services available at non-hospital locations. This action ensures transparency for state residents receiving medical care at hospital-owned outpatient facilities.

The University of Maryland Medical System Corporation will pay $2,251,781.52 in total restitution to eligible patients. This amount covers outpatient facility fees charged before the Facility Fee Right-to-Know Act took effect on July 1, 2021.

The players

Anthony Brown

He serves as the Attorney General of Maryland and led the legal action against the hospital system.

University of Maryland Medical System Corporation

This regional healthcare provider manages a network of hospitals and outpatient clinics across the state.

The details

The Consumer Protection Division investigated the system for failing to provide adequate notices regarding facility fees for services that could have been obtained at lower-cost, non-hospital settings. While the corporation denies the allegations of inadequate disclosure, it has agreed to the payout to resolve the legal dispute.

Timeline

  1. July 1, 2021: The Facility Fee Right-to-Know Act took effect in Maryland.

  2. September 25, 2026: Attorney General Anthony Brown announced the settlement.

  3. Next six months: Eligible patients are expected to receive refund checks.

Market Landscape

This settlement follows the implementation of the Facility Fee Right-to-Know Act, which regulates how hospitals disclose costs to patients. The legal action marks a significant enforcement effort regarding billing practices that were common in the healthcare sector prior to the law taking effect.

Eligible patients who were overcharged for facility fees will receive refund checks automatically within the next six months. Residents with questions regarding their potential eligibility can contact the settlement administrators at 410-576-6456.

The takeaway

Patients should always request an itemized list of fees when receiving outpatient care at hospital-affiliated clinics. Understanding the difference between facility and professional fees can help you avoid unexpected medical costs in the future.

Further reading

For more information on state medical billing policies, visit the Healthcare section.

Source note: This article includes information reported by WBFF.

Live Poll

Do you trust that hospitals provide enough transparency regarding hidden facility fees for patients?