04/29/2024
FOR IMMEDIATE RELEASE
April 29, 2024
Contact:
Christina Crooks Bryan
Cell: 302-245-1638
Politician-controlled hospitals (HB 350) will decimate Delaware’s healthcare system
Dover, Delaware (April 29) - The Delaware Healthcare Association (DHA) today denounced the narrow Delaware House of Representatives approval of legislation that puts paid political appointees in charge of the state’s nonprofit hospitals and immediately slashes $360 million in healthcare resources from the state’s five adult acute care hospital systems.
[1]DHA implores the Delaware Senate to work together with stakeholders on an alternative proposal that addresses healthcare costs without negatively impacting Delaware healthcare workers, patients, and the health of our communities. “This legislation decimates Delaware’s healthcare system,” said Brian Frazee, DHA president and CEO. “The Delaware House voted to cut $360 million from our hospitals, which could lead to the loss of more than 4,000 Delaware hospital jobs, the closure of hospital services, and lost investment in critically important community support programs.”
“It is in no one’s best interest to remove budget oversight from local community leaders serving on nonprofit hospital boards and hand it to a panel of paid political appointees,” he continued. “Delaware already struggles to attract and retain talented doctors and other healthcare professionals; this bill will ensure that healthcare providers seek jobs in states that welcome advanced and innovative healthcare.”
“The people of Delaware will suffer through longer emergency department wait times, fewer providers, and more difficulty scheduling medical appointments,” Frazee said.
The bill establishes the Diamond State Hospital Cost Review Board, a panel of paid political appointees in charge of spending, staffing, cost of service, investments and every other key function of hospital operations as part of hospital cost oversight. Because the bill imposes an immediate 250% of Medicare cap on commercial reimbursement, hospital resources will be slashed by $360 million.
Bill supporters claim to have developed the legislation from several other state plans to address hospital costs but in reality, this risky plan is based on a failing Vermont law.
“Vermont healthcare costs rank fifth in the nation after nearly 13 years of the politician-controlled model,” Frazee noted. “Even worse, 11 of Vermont’s 14 hospitals operate in the red. This should not be a standard that Delaware seeks to emulate.”
The legislation also endangers local programs critical to keeping people healthy and out of the hospital.
“Focusing on cost alone harms Delaware’s most vulnerable populations traditionally underserved in healthcare. Hospitals invest in programs to improve health equity and address social drivers of health to increase population health for all Delawareans. These types of interventions do not generate revenue and will be at risk under HB 350.”
Frazee noted that the bill passed on the slimmest of margins, without full debate, and with four House members absent. HS 2 for HB 350 passed the Delaware House with 21 votes – the exact number of votes needed to pass legislation in the House to ensure a constitutional majority. “Resolving cost, access, and quality for patients and public health requires collaboration among all key stakeholders in a more reasonable amount of time,” Frazee said.
Frazee said DHA worked to offer proposals that address affordability and transparency and establish a collaborative effort to identify realistic solutions to shared cost concerns.
“Only a holistic approach to improving healthcare while addressing costs will benefit Delawareans, and we call on Governor Carney and State Senators to join us in developing an approach that will help - not harm - the state of Delaware,” Frazee said.
[1] Nemours Children’s Hospital is exempt from the 250% of Medicare cap provision in HB 350.