HB 5770 Michigan House · 2025-2026 Regular Session

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

This bill prohibits health care providers in Michigan from charging facility fees for certain services starting January 1, 2027. It directly affects hospitals, urgent care clinics, and other health facilities that currently bill patients for facility fees separate from professional medical fees. The law bans facility fees for telemedicine services, services provided in non-hospital facilities, and outpatient hospital services except in emergency rooms or during observation periods. Providers must clearly identify facility fees on bills and inform patients about the fee amount before services are rendered. Patients who believe they were improperly charged can sue for damages, with court costs and attorney fees awarded to successful plaintiffs.
Bill status passed 3 of 5 stages cleared
Introduction
Mar 2026
Committee Review
Aug 2026
House Passage
Aug 2026
Senate Passage
Governor
Introduced Mar 19, 2026 Last action Aug 26, 2026
Maddy AI version diff · 1 comparison

What changed between versions

House Introduced Bill Substitute (H-1) · 6 edits
MODERATE
The substitute bill adds an exemption for ambulatory surgical centers from the facility fee prohibition, broadens the insurer agreement exception from health systems to all health care providers, adds a Medicare reimbursement carve-out, and redefines 'professional fee' by removing location-based restrictions. These changes narrow the bill's practical reach by creating new exceptions while also simplifying key definitions.
SCOPE

A new definition for 'ambulatory surgical center' was added, covering CMS-certified entities under 42 CFR part 416 that provide surgical services to patients not requiring hospitalization.

Section 7(1) was broadened: the insurer agreement exception now applies to any 'health care provider' rather than only a 'health system,' and the language about who considers the fee appropriate was simplified from 'considered appropriate by the insurer and the health system' to simply 'considered to be appropriate.'

Section 7(2) is new: it explicitly states the act does not prohibit charging and reimbursing a facility fee under Medicare, creating a federal program carve-out.

ELIGIBILITY

Section 3 now includes subsection (2) which exempts ambulatory surgical centers from the facility fee prohibition. Providers in these facilities may still charge facility fees for professional medical services.

DEFINITION

The definition of 'professional fee' was changed from being location-based (services provided in a hospital, hospital campus, or off-campus hospital-based facility) to being provider-based (services provided by a health professional). This removes the geographic limitation on what qualifies as a professional fee.

The definition of 'off-campus hospital-based facility' was removed entirely, consistent with the revised professional fee definition that no longer references facility locations.

Floor votes

How they voted

This bill passed the House by voice vote (no roll call recorded).
Full legislative history

Actions timeline

Total actions
10
Key actions
2
Committee
2
Aug 26, 2026
Lower · Passed
substitute (H-1) adopted and amended
lower
Aug 26, 2026
Lower · Passed
motion to discharge committee approved
lower
Mar 19, 2026
Committee
referred to Committee on Health Policy
lower
Mar 19, 2026
Introduced
introduced by Representative Rep. Curtis VanderWall
lower
1 primary · 4 co-sponsors

Sponsors