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Senate HHS committee advances bill to ban hospital facility fees at provider‑based clinics
Summary
The Health and Human Services Committee voted to recommend Senate File 1503 as amended to the Judiciary Committee. The bill would prohibit hospital facility fees for many nonemergency outpatient services, require reporting to the Minnesota Department of Health and authorize enforcement by the attorney general and MDH.
Senate File 1503, a bill to prohibit certain hospital “facility fees” at provider‑based clinics, was recommended to the Judiciary Committee by the Minnesota Senate Health and Human Services Committee on Feb. 18, 2025. The committee adopted an author’s amendment and voted to refer the bill to Judiciary.
The bill’s author, Senator Umu Verbaten, told the committee facility fees are charged when hospitals acquire clinics and designate them as provider‑based, allowing an additional charge unrelated to the individual patient’s care. “Facility fees don't improve the value or outcome of a doctor's visit for a patient. They simply improve the profit line for health care companies,” she said.
Why it matters: Supporters say facility fees raise out‑of‑pocket costs, are often not transparent and can…
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