UMMS Paid $2.25 Million to Settle Fee Dispute

Healthcare providers must ensure transparency in billing practices to avoid regulatory challenges.

Updated on Sept. 29, 2026 in Healthcare

Isometric editorial illustration of a sterile hospital clinic entrance, representing transparency in healthcare billing processes. — The University of Maryland Medical System will pay $2.25 million to patients to settle allegations involving improper facility fee notifications at its outpatient clinics. AI Illustration. Upload story photo >

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The University of Maryland Medical System (UMMS) has agreed to provide $2.25 million in restitution to patients following an investigation into its facility fee notification practices. The settlement affects patients who paid out-of-pocket charges at more than two dozen hospital-based clinics between 2017 and 2021.

Why it matters

The settlement stems from allegations that the system's notification practices violated the state's Consumer Protection Act. For operators, this highlights the necessity of strictly adhering to disclosure requirements when implementing supplemental service fees.

UMMS agreed to pay $2,251,781.52 in restitution across more than two dozen hospital-based clinics. Eligible patients must have paid more than $24.99 out of pocket during the 2017 to 2021 period, with the full process expected to conclude within 12 months.

The players

University of Maryland Medical System

A large, multi-hospital academic medical system based in Baltimore with significant outpatient operations across Maryland.

Maryland Consumer Protection Division

A state agency responsible for enforcing consumer protection laws and regulating business practices to prevent deceptive billing.

The details

The dispute centered on the health system's failure to adequately inform patients of facility fees for outpatient services. The restitution program is limited to those who paid more than $24.99 out of pocket, excluding emergency services and fees covered by insurance. The organization did not admit liability as part of the agreement, and any unclaimed funds after one year will be transferred to the state's Consumer Protection Division.

January 1, 2017 marked the beginning of the period for relevant facility fees.
October 2019 was when the Maryland consumer protection division began its investigation.
June 30, 2021 was the end of the period for relevant facility fees.
July 1, 2021 was the date the Facility Fee Right-to-Know Act took effect.
September 22, 2026 was the date the settlement agreement was signed.

Market Landscape

This settlement marks the conclusion of a dispute regarding billing practices that predated the implementation of the Maryland Facility Fee Right-to-Know Act. It aligns with the increasing state-level regulatory focus on requiring healthcare systems to provide clear notice of administrative fees.

Operators in any industry with complex billing models must ensure their fee disclosures are transparent and easily understood by the customer. Businesses should audit their current notification procedures to ensure compliance with existing consumer protection statutes.

The takeaway

Transparency in fee disclosures is a critical operational requirement that can prevent costly legal disputes and regulatory investigations. Managers should review billing templates and customer communication policies annually to ensure they meet the latest regulatory standards.

What happens next

The restitution process for eligible patients is scheduled to be completed within 12 months, and any funds remaining after that period will be transferred to the Maryland Consumer Protection Division.