(Dover, DE – March 5, 2026) – The Delaware Healthcare Association today urged lawmakers to reject Senate Bill 1, which would cut hospital jobs and limit access to services at a time when our state needs more health care, not less.

While DHA and its member hospitals remain committed to the shared goals of affordability and expanded access to care, the association said SB 1 would reverse those efforts by cutting resources and jobs and shifting critical decision-making away from health care experts. Collaborative, expert-led approaches have helped make Delaware the top ranked state in the country for hospital quality.

“Delaware hospitals were able to achieve their top ranking for quality because our healthcare experts, policymakers and community stakeholders have worked side-by-side to prioritize the needs of our patients,” said Brian Frazee, DHA President & CEO. “Together, we have been doing the real work in good faith to improve access and develop value-based solutions that lower costs without sacrificing access and quality in our uniquely growing and aging state. Senate Bill 1 revives notions already rejected in HB 350 and removes the very experts who are responsible for Delaware’s healthcare success.”

Similar to rejected provisions in HB 350, this legislation will limit hospital investments in healthcare, prevent workforce recruitment and retention, and lead to job cuts.

Frazee said the legislation would:

• Risk 1,500 healthcare jobs.During a national provider shortage, recruitment and retention should be key.
• Replace experts with bureaucrats in making decisions on hospital rates and value-based care.
• Cut at least $165 million in health care resources for Delaware hospitals, their patients and communities.
• Reduce primary care access. As the largest employer of primary care physicians, targeting hospital resources undermines the primary care networks Delawareans rely upon.

“Delaware is home to a uniquely growing and aging population in need of greater access to a wide variety of care,” Frazee added. “This legislation will exacerbate the lack of access to care and do nothing to reduce costs.”

Hospitals already are bracing against federal policies and expected funding cuts that will lead to more uninsured patients, less preventive care, more emergency room visits, and more uncompensated care. Hospitals significantly invest in recruiting and retaining primary care providers – 500 are currently employed at Delaware hospitals – but lose more than $70 million each year in doing so.

There is already a path forward for better primary care access. Frazee noted that the Primary Care Reform Collaborative recently recommended a two-year extension of existing laws to allow for a process for developing a collaborative and thoughtful implementation of sustainable value-based care models. This recommendation was even supported by Senate Majority Leader Bryan Townsend, SB 1’s prime sponsor. SB 1 bypasses this consensus, instead granting significant rate-setting authority to the Department of Insurance and State Employee Benefits Committee, neither of which is an expert in the clinical and operational complexities of hospital systems.

“This bill takes us backward,” Frazee continued. “We need to continue working with the experts to invest in our workforce, reduce administrative insurance burdens and develop sustainable value-based care models to address affordability while protecting care at home.

“We urge lawmakers to allow the collaborative, expert stakeholder process to continue rather than doubling down on failed policies that will worsen access to care and do nothing to address costs.”

Frazee said DHA remains ready to work with the bill’s sponsors, the Department of Insurance and all stakeholders to find a path forward that preserves Delaware’s national leadership in quality care.

Learn more about the impact in DHA’s letter to the Delaware General Assembly. 

About the Delaware Healthcare Association

The Delaware Healthcare Association (DHA) advances health in Delaware through collaborative policies and partnerships. DHA represents the First State’s hospitals, health systems, and other healthcare related organizations, which include all of Delaware’s acute care, post-acute care, behavioral health, rehabilitation, and children’s hospitals. Our vision is to Make the First State First in Health.