Beginning June 21, 2023, New York State (NYS) Public Health Law (PHL) Section 2830 requires hospitals and healthcare professionals to provide written notice to patients before the patient is charged a facility fee.

Overview of Hospital Billing

Billing by hospitals and certain medical facilities typically involves a combination of a facility fee and a professional fee. Facility fees account for the overhead costs of maintaining a hospital, or other health care facility, and refer to the payments for services provided by the hospital, or other health care facility, for either in-patient or out-patient care. Revenue earned from facility fees may go towards electricity, equipment, supplies, non-physician staff, and other costs directly attributable to the operation of the facility itself. By contrast, professional fees account for the services provided by the physician or other health care professional.