Olathe patients report sticker shock over rising healthcare costs at KU Health facility. What's the story behind the sudden increase?
Olathe patients are facing unexpected financial burdens as they receive bills that are significantly higher than before. This sudden surge in costs has sparked concern and confusion, especially after the University of Kansas Health System (KU Health) took over the Olathe hospital and Miami County Medical Center in Paola in 2023. The acquisition aimed to enhance access to quality healthcare, but it seems the investment has led to a different kind of challenge.
The hospital's transformation into a hospital-owned clinic and the implementation of provider-based billing (PBB) have raised eyebrows. Under this system, patients are now charged for both physician services and hospital facility and nursing services, even for clinic visits. This change has resulted in higher out-of-pocket expenses for many.
Melinda Renner, a 54-year-old patient, experienced a sixfold increase in her bill for a hip x-ray. Despite seeing the same doctor and receiving the same care, the bill skyrocketed from $179 to $1,131. Hospital employees attributed this to a change in billing, where the radiology services were now categorized as outpatient services.
The Health Care Cost Institute explains that facility fees, typically included in outpatient fees, can vary for services in hospital-owned clinics. Under KU Health, the Olathe hospital is now considered a hospital-owned clinic, and patients are facing these higher fees. This has led to concerns about the impact on healthcare costs and the responsibility of healthcare providers in communicating these changes.
Renner's experience is not an isolated incident. After sharing her story on social media, she received numerous comments from other patients who have encountered similar unexpected charges. One such patient, Kristen Catherman, switched her primary care provider due to the high hospital fees at the Olathe hospital. The shift in billing practices has caused confusion and financial strain for many.
The KU Health System's financial supervisor, Colette Lasack, acknowledges the potential reasons for higher bills. She explains that the switch to provider-based billing has brought the clinic under the hospital's quality standards and integrated safety measures. Additionally, doctors not previously employed at Olathe Health became part of KU Health, leading to potential billing changes.
The hospital's transition to the Epic medical records system has also contributed to the complexity of billing. Patients may now receive a single statement covering all services, which Lasack believes is less confusing. However, the process of adjusting to these changes and ensuring patients are well-informed about their financial responsibilities remains a challenge.
KU Health encourages patients with concerns to contact their customer service line or financial counselors for assistance. Despite the challenges, the healthcare system aims to help patients understand their bills and explore payment plan options to alleviate financial stress.
