Medical Billing and Coding: Roles, Processes, and Skills Practice Test

Facility billing covers charges for the place where care is provided and the resources of that setting, not just the medical services themselves. This includes settings like hospitals (inpatient and outpatient), skilled nursing facilities, rehabilitation centers, and ambulatory surgical centers, where the facility provides the space, equipment, nursing staff, and other overhead needed to deliver care. The charges reflect the use of the facility rather than the doctor’s direct professional services, which are billed separately as professional fees.

Private clinics are typically outpatient environments where professional services are billed rather than a broad facility charge. Home health care is delivered in a patient’s home and billed through home health services, not as a facility fee. Pharmacies bill for medications and supplies, not facility charges.