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.