Today, the Senate Business and Commerce committee considered Senate Bill 425, which addresses billing transparency and mediation for freestanding emergency centers (FECs). The Association of Freestanding Emergency Centers (TAFEC) was well represented at the hearing, with three members providing oral testimony to the committee.

The committee substitute to SB 425 removed provisions requiring facilities to post their min/max facility fees, removed the network status requirement of every facility/physician and increased the mediation threshold from $1,000 to $2,500. This new version now includes four notice requirements and numerous mediation provisions.

John McGee addressed the numerous concerns with the drafted mediation language in Senate Bill 425. The mediation provision, as drafted, is a critical overstep of legislative authority that unfairly hinders a growing industry. All other examples of medical facilities that issue a facility fee do not have mediation requirements. (Click here for John’s testimony).

Additionally, McGee explained that, in accordance with federal and state regulation, costs of care are not discussed until after a patient has been determined to be non-emergent and stabilized.

Mike Sarabia, MD also testified before the committee, mentioning how the FEC model has produced hundreds of thousands of satisfied patients and emergency physicians who were not adequately considered in the proposed bill. With overcrowded hospital waiting rooms, FECs are an important access point to emergency health care.

And finally, Rhonda Sandel testified in opposition to the bill, noting that a lot of the confusion in the minds of consumers stems from urgent care facilities muddying the waters by marketing themselves as “emergency care” providers and advertising as “ERs” – which is illegal according to Texas statutes.

She went on to say that FECs present themselves as emergency care providers that are comparable to a traditional hospital, and that TAFEC is taking an active role in educating consumers so they are aware of the differences between FECs and urgent care facilities and empowered to make the best decision for emergency care. (Click here for Rhonda’s testimony).

Thanks to Brian Aldred, MD who also participated in the hearing process by registering his opposition to SB 425.

In addition to the aforementioned TAFEC-affiliated testimony, numerous other physicians and FEC owners testified in opposition to Senate Bill 425, citing similar concerns on the specified disclosure language and mediation requirements.

It was great to hear multiple Senators defend the free market concept and allow a successful industry like FECs to continue growing. Those Senators realize the importance of the 6,000 – 7,000 jobs created by TAFEC members and the over $20 million in annual tax dollars generated for local/state governments. We will continue to work with Senator Schwertner and the committee to revise SB 425’s language so that it protects consumers without hindering growth of the FEC industry.

Brad Shields

Executive Director of TAFEC