Hospital CEOs defend charging patients more at facilities

Health newsHospital CEOs defend charging patients more at facilitiesFacility fees were a major focus during a hearing on the high costs of hospital care.Listen to this article with a free account00:0000:00Rep. Jason Smith, R-Mo., chair of the House Ways and Means Committee.Graeme Sloan / Bloomberg via Getty ImagesShareAdd NBC News to GoogleApril 28, 2026, 5:32 PM EDTBy Berkeley Lovelace Jr.Hospital CEOs came under fire at a House hearing Tuesday, with Republicans accusing them of overcharging patients and exploiting the system.Subscribe to read this story ad-free Get unlimited access to ad-free articles and exclusive content.Executives from HCA Healthcare, CommonSpirit Health, New York-Presbyterian and ECU Health testified before the House Ways and Means Committee, defending their pricing practices — including that they should be able to charge higher prices for the same services compared with what patients might pay at independent practices.Hospitals accounted for nearly one-third of U.S. healthcare spending in 2024 or about $1.6 trillion, according to a report in the journal Health Affairs. Another study, published in JAMA Health Forum, found that patients tend to pay more for the same doctor’s visits when their doctor is part of a hospital or private equity firm. “The American people are fed up with outrageous prices that seem artificially high,” said Rep. Jason Smith, R-Mo., the committee’s chair.Throughout the hearing, Republicans cited instances of hospitals in their states charging high prices at outpatient facilities affiliated with the hospital. These prices are often inflated by so-called facility fees, which are not related to the care provided but instead help cover expenses like staff and equipment. Rep. David Kustoff, R-Tenn., pointed to an example of an independent ambulatory surgical center in his state that charged a facility fee of $656 for a colonoscopy, while an unnamed hospital outpatient facility charged a $1,222 facility fee. “Is an 100% incre...