Work

Hospital finances following Connecticut's ban on outpatient facility fees

Year: 2025

Type: article

Abstract: Introduction: In 2017, Connecticut prohibited hospitals from billing "facility fees" for certain services delivered off their main campuses. Methods: Using Hospital Medicare Cost Reports and the National Academy for State Health Policy Hospital Cost Data (2011-2022), we applied a difference-in-differences model within an event study framework to compare hospital financial outcomes between Connecticut hospitals and matched control hospitals nationwide. Results: Unadjusted trends suggest small declines in operating margins and outpatient-to-total charges after the ban, alongside an increase in inpatient-to-total charges. In adjusted analyses, operating margins and inpatient-to-total charges did not change significantly, while outpatient-to-total charges declined significantly by 6.91%. Conclusion: Given the small sample and limited precision, a policy effect cannot be ruled out for several outcomes. Future research evaluating the long-term sustainability and impacts on hospital financials, access, and care quality are warranted.

Source: Health Affairs Scholar

DOI: 10.1093/haschl/qxaf237

Authors: Robert Tyler Braun, Rahul Joseph Fernandez, Rachel Swindle, Christine H Monahan, Dunc Williams

Institutions: Cornell University, Weill Cornell Medicine, Harvard University, Georgetown University, Medical University of South Carolina

Language: English

Topic: Healthcare Policy and Management

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Good health and well-being

Open Access status: gold

Estimated APC paid: $3,150