What is “facility” in medical billing?

Facility in Medical Billing

A facility in medical billing refers to any healthcare institution where medical services are provided, such as hospitals, clinics, or surgery centers.

Facility in Medical Billing Explained

In medical billing, charges differ depending on whether services are provided in a facility (hospital or clinic) or a physician’s office. Facility fees are often separate from physician charges and cover the costs of using the hospital or clinic’s resources.

For example, when a patient undergoes surgery at a hospital, the facility bills for the use of its operating room, equipment, and staff.

Discover common acronyms and abbreviations in Medical billing glossary.

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