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Q: I'm curious how other hospitals determine facility fees. What's the best way?

Patient Financial Services Weekly Advisor, January 21, 2005

A: Facility fees are largely cost and volume based at Willis-Knighton Health System (WKHS). Consideration is given to competitive benchmarking and/or other market indicators.

Standard services and equipment are included in our facility fees; however, unusual and expensive items (nonstandard equipment and supplies) are priced separately, due to the variations in their cost and use. WKHS believes that itemized billing for nonstandard equipment and supplies improves physicians' and managed care organizations' understanding of pricing.

However, it is difficult to capture individual charges in certain departments, for instance laboratory, because they bundle prices for procedures. Bundling of charges is necessary because lengthy supply lists required for procedures and services deter staff from itemizing individualized charges.

WKHS facility fees commonly include care components such as

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