Statement: Oregon Senate moves against hospital facility fees
For Immediate Release:
Tuesday, April 8, 2025
Statement: Oregon Senate moves against hospital facility fees
Committee on Health Care advances bill to rid Oregonians of unjustified medical fees
SALEM, Ore. – Members of the Oregon state Senate took action on behalf of all Oregonian medical patients on Tuesday. The chamber’s Committee on Health Care voted 4-1 to advance SB 539, which would restrict health care providers’ ability to impose hospital facility fees on medical bills in the state.
As health care costs rise nationwide, big hospital systems add hidden and expensive fees to patients’ bills. These unexpected charges, called “facility fees”, often aren’t covered by insurance companies, leaving consumers to pay unexpected charges out of pocket. Under this system, companies label smaller clinics and specialized practices as “hospitals” and charge higher fees unrelated to the cost of care patients receive.
If passed by the full state legislature and signed into law, SB 539 will prohibit companies from charging a hospital facility fee at practices where the justification doesn’t apply – hospital-owned clinics not on the campus of a hospital, and routine “evaluation and management” services that could be done in lower cost settings. It will also require hospitals to provide advance notice of fees to patients and report all facility fee charges to the state. The bill will be voted on by the full Senate body in the coming weeks.
In response to SB 539’s passage out of committee, OSPIRG State Director Charlie Fisher released the following statement:
“Hospital facility fees increase health care costs without any benefit in return for patients. Banning these unjustified additions to medical bills will allow Oregonians to plan ahead, compare prices and make informed decisions on the care they need. Thanks to the leadership of the Senate Committee on Health Care, a system that puts patients first is in view. In addition to protecting consumers from unjustified fees, SB 539 will also provide opportunities for policymakers, researchers and insurers to further understand the complexities of hospital pricing and advocate for a more competitive, lower-cost health care system.”
