Lifestyle

6 Ways Hospitals Overcharge Patients and How to Fight Back

By Erica Coleman · May 30, 2026

Research consistently finds that up to 80% of medical bills contain errors, duplicate charges, or inflated fees. Most patients pay without question — not because the charges are correct, but because the bills are confusing, the process of disputing them feels daunting, and few people know their rights. Here are the six most common ways hospitals overcharge patients, and what you can do about each.

1. Balance billing from out-of-network providers at in-network facilities

You chose an in-network hospital. You verified your surgeon was in-network. And then you received a bill from an anesthesiologist, radiologist, or assistant surgeon who was not — even though you never chose them and couldn’t have. Nearly 60% of Americans have received surprise bills exactly like this. Under the No Surprises Act, for emergency care and scheduled procedures at in-network facilities, you cannot be billed more than your in-network cost-sharing. If you received a balance bill, dispute it in writing and cite the No Surprises Act.

2. Charges for services that weren’t rendered

Request an itemized bill — not the summary — within 30 days of any hospital stay or procedure. Hospitals are legally required to provide one. Read every line against your actual experience. Common phantom charges include: “operating room supplies” for a procedure done in an office setting, consultations by specialists you never saw, duplicate charges for the same medication on the same day, and items like a $50 “patient convenience kit” containing a box of tissues, a water pitcher, and a pair of grip socks.

3. Upcoding — billing for more than you received

Upcoding is the billing of a higher-complexity service than what actually occurred — charging for a 45-minute complex evaluation when a routine 15-minute visit took place, or billing for a complete surgical procedure when only a portion was performed. Healthcare advocates say upcoding inflates medical bills by billions of dollars annually. The hospital’s chargemaster — the master price list they are required to publish publicly — is your reference for what each procedure should cost. The PatientRightsAdvocate.org Hospital Price Files Finder helps you locate it.

4. Facility fees for routine outpatient visits

As hospital systems have acquired private physician practices, they have begun charging “facility fees” for visits that previously happened in a doctor’s office — sometimes adding $150 to $500 to the cost of a routine appointment. Patients are often not informed of facility fees in advance, even though the No Surprises Act requires a good faith estimate. If you were charged a facility fee without prior notice, you have grounds to dispute it.

5. Not applying for financial assistance before paying

Most nonprofit hospitals — which hold the majority of US hospital beds — are required by their tax-exempt status to provide charity care or financial assistance to patients with incomes at or below 200-400% of the federal poverty level ($31,920 to $63,840 for individuals in 2026). Many qualifying patients never apply because they don’t know the program exists. Hospitals are required by law to inform patients about financial assistance, but many don’t proactively do so. Ask the billing department for their charity care or financial assistance application before paying any large bill.

6. Failing to verify insurance processing errors

Insurance companies sometimes deny claims due to processing errors — incorrect provider codes, duplicate submissions, or claims processed under the wrong patient record. Review your Explanation of Benefits statement from your insurer alongside the hospital bill. If the two don’t match, contact both the insurer and the provider in writing. Processing errors can result in thousands of dollars in unnecessary patient responsibility that disappears when corrected.

To dispute any medical charge, document everything in writing, request itemized bills, and give providers 30 days to respond. If you have a complex large bill you cannot resolve alone, patient advocacy organizations including Solace Health, Medical Bill Rescue, and Dollar For provide negotiation assistance — typically for a percentage of the savings or on a nonprofit basis.