Michigan House Bill HB5770

Michigan 2025-2026 Regular Session

• Introduced: 3/19/26
• Refer: 3/19/26

Caption

Health facilities: other; facility fees; prohibit under certain circumstances. Creates new act.

Summary

HB 5770 would create a new Michigan law restricting when health care providers may charge, bill, or collect facility fees. Beginning January 1, 2027, providers could not impose a facility fee for professional medical services delivered through telemedicine, for services provided in a non-hospital facility, or for most outpatient services provided in a hospital. The bill makes two exceptions for hospital outpatient care: facility fees could still be charged for services in a hospital emergency room and for observation services. The bill also requires providers that do charge a facility fee to clearly label it as such on the billing statement and to notify the patient before the service is provided that a facility fee will be charged and the amount of that fee. A patient who is harmed by a violation of these requirements could sue the provider for damages, and a prevailing plaintiff would be entitled to reasonable costs and attorney fees. The bill does not prevent insurers and health systems from negotiating payment arrangements they consider appropriate.

Impact

HB 5770 would add new restrictions to the Public Health Code and related billing practices by limiting facility fees in telemedicine, non-hospital settings, and most hospital outpatient settings. It would affect hospitals, hospital-based facilities, freestanding emergency facilities, urgent care clinics, health systems, and other health care providers that bill separate facility charges, while preserving facility-fee billing in emergency room and observation contexts. The bill also creates a private right of action and fee-shifting remedy, which could increase compliance obligations and litigation exposure for providers.

Sentiment

Based on the bill text and available context, the measure appears to be consumer-protection oriented and aimed at reducing surprise medical billing and out-of-pocket costs. No committee transcripts or recorded votes were provided, so there is no direct evidence of debate or partisan division in the available materials. The structure of the bill suggests support for greater billing transparency and limits on facility fees, while still preserving some hospital revenue in emergency and observation settings.

Contention

The main points of contention are likely to be the scope of the facility-fee ban and the carveouts for hospital emergency rooms and observation services. Health systems and hospitals may view the restrictions as limiting reimbursement for overhead and operational costs, especially for outpatient services delivered in hospital-owned settings or affiliated facilities. Patient advocates and insurers would likely favor the bill’s transparency requirements and prohibition on fees in telemedicine and non-hospital settings, while providers may object to the private lawsuit remedy and attorney-fee provision as increasing legal risk.