Michigan Health Systems Refused Facility Fee Disclosure
The ten largest health systems in Michigan declined to report annual earnings gathered through facility fees.
Updated on Oct. 12, 2026 in Healthcare
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Should hospitals be required to publicly disclose how much they collect in facility fees?
The state's ten largest health systems have declined to disclose the amount of revenue generated through facility fees. These fees are typically collected to cover overhead expenses such as cybersecurity and emergency staffing.
Why it matters
Legislators are seeking this financial data to assess if the fees are justified and to measure their impact on total healthcare costs. Hospitals argue these payments are necessary to offset inadequate reimbursements and Medicaid uncertainty.
The ten largest Michigan-based health systems have opted not to report their annual revenue from facility fees. For comparison, the Congressional Budget Office has estimated that regulating these fees in Medicare Part B could save $157 billion over 10 years.
The players
Curt VanderWall
He is a Michigan State Representative who introduced legislation to ban facility fees for routine care at hospital-owned outpatient sites.
Scheurer Health
This health system operates in the Thumb region of Michigan and maintains an annual budget of $125 million.
Michigan Health & Hospital Association
This is a state-level organization that does not track facility fees as a separate line item for its member hospitals.
The details
Health systems integrate these fees into their operating budgets instead of tracking them as separate line items. While Scheurer Health in the Thumb expects $125,000 in facility fee revenue for 2025, the Michigan Health & Hospital Association does not maintain a consolidated record of these collections.
Timeline
Scheurer Health expects $125,000 in facility fee revenue during 2025.
Market Landscape
The push for transparency regarding facility fees reflects a broader trend toward cost-containment measures similar to those proposed for Medicare Part B. These legislative efforts aim to shift market dynamics by standardizing how hospitals charge for outpatient services.
If the proposed legislation is passed, patients could see an end to additional facility fees for routine care at hospital-owned outpatient sites. This change would directly reduce the out-of-pocket costs for residents seeking common medical services.
The takeaway
Patients should verify if their upcoming outpatient appointments are classified as hospital-owned sites to understand potential extra charges. Monitoring the status of the new bill in the state legislature will be key to understanding future medical billing requirements.
Further reading
Learn more about the local healthcare climate on the Michigan Healthcare page.
Live Poll
Should hospitals be required to publicly disclose how much they collect in facility fees?
