Michigan Health Systems Withheld Facility Fee Data
The state's ten largest hospital operators refused to disclose revenue generated by facility fees for outpatient services.
Updated on Oct. 12, 2026 in Healthcare
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Michigan's ten largest health systems have declined to release annual revenue figures tied to facility fees collected for outpatient care. The refusal complicates legislative efforts to evaluate the necessity of these charges for hospital-owned clinics.
Why it matters
Lawmakers are seeking greater financial transparency to determine if these fees drive up healthcare costs, while hospitals maintain the revenue is critical for survival amid reimbursement pressures.
Scheurer Health projects $125,000 in facility fee revenue this year against a total annual operating budget of $125 million. Legislators are considering the impact of these fees in light of Congressional Budget Office estimates that Medicare Part B reforms could save $157 billion over 10 years.
The players
Scheurer Health
A healthcare provider operating in Michigan's Thumb region with an annual budget of $125 million.
Curt VanderWall
A State Representative who introduced legislation to restrict facility fees for outpatient care.
Michigan Health & Hospital Association
An industry trade group representing Michigan hospitals that does not track facility fees as a separate line item.
The details
Health systems currently integrate facility fee revenue into their broad operating budgets instead of tracking them as distinct line items. This practice, supported by the Michigan Health & Hospital Association, makes it difficult to audit how these funds—which are used to cover overhead like cybersecurity and emergency staffing—are allocated. State Representative Curt VanderWall has introduced legislation aimed at banning these fees for routine care at hospital-owned outpatient sites.
Timeline
2025: Expected year for Scheurer Health's $125,000 facility fee revenue.
Market Landscape
The push to restrict facility fees aligns with national debates surrounding Medicare Part B billing reform and its potential to lower costs. This legislative effort in Michigan mirrors broader policy trends seeking to curb hospital-based outpatient fee structures.
Operators should monitor the status of Representative Curt VanderWall's bill, as its passage would prohibit facility fees for routine outpatient services at hospital-owned sites. Businesses utilizing hospital-based outpatient services should prepare for potential changes to billing structures and overhead cost allocations.
The takeaway
The lack of granular financial data from major health systems makes it difficult for operators to benchmark outpatient costs against hospital-affiliated competitors. Owners should track the legislative progress of the proposed facility fee ban to anticipate potential shifts in market pricing for outpatient care.
Further reading
For more on industry shifts, see Healthcare.
Source note: This article includes information reported by The Morning Sun.
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Should hospitals be required to publicly disclose how much they collect in facility fees?
