(Dover, DE – May 30, 2025) – On Friday, the Delaware Court of Chancery ruled in Christiana Care Health Services, Inc. et a., v. John Carney, et al., the State of Delaware’s motion to dismiss ChristianaCare’s lawsuit to address constitutional and corporate franchise issues in Delaware House Bill 350. The decision asserts that ChristianaCare’s claim regarding corporate and constitutional laws is valid to pursue.

Brian Frazee, President & CEO of the Delaware Healthcare Association, shared the following statement after this ruling:

“Today’s Court of Chancery decision recognizes the stark difference between oversight and overreach. House Bill 350, which created the Diamond State Hospital Cost Review Board, was inspired by a failing Vermont model that is clearly not the right solution to Delaware’s unique healthcare challenges. As we’ve said all along, the law authorizes a state-run board to step into local hospitals’ private governance to control their hospital budgets. Today’s opinion shows that this law raises significant constitutional questions.

Now is the time to put HB 350 behind us and move forward with a better solution for Delaware so we can keep our nationally recognized #1 in hospital quality ranking and build on this progress. Delawareans deserve an all-hands-on-deck collaborative approach especially as we face uncertainty on the national level and the likelihood of deep cuts to healthcare programs. We continue to stand ready to partner with the state and our healthcare partners on an approach that ensures an affordable, accessible, and quality healthcare system for all Delawareans.”