DHA Statement: Vermont Healthcare Strategy is Not the Right Solution for Delaware

September 9, 2025
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(Dover, DE – September 9, 2025) – Delaware Healthcare Association President & CEO Brian Frazee issued the below statement following the September 9 meeting of the Diamond State Hospital Cost Review Board where members heard a presentation around state strategies to reduce healthcare costs.

With national healthcare spending projected to grow by 8.5% next year and massive reductions coming to Medicaid, now is the time for a collaborative approach to healthcare affordability.

“Today, members of the Diamond State Hospital Cost Review Board heard a presentation around state strategies to reduce healthcare costs. The Vermont model was mentioned as an approach to contain costs. One thing that was clear: Vermont’s strategy is not working. Just look at the recent news headlines featured in the presentation where the words “crisis” and “financial struggles” are front and center. One hospital is reported to have said it will stop delivering babies. No other state is looking to replicate this approach, but House Bill 350 does just that for Delaware. As we’ve said all along, we don’t want to see our state go in the same direction as Vermont, which is why the Delaware Healthcare Association and our members are committed to a solution that meets this moment. House Bill 350 is not the right approach to lower healthcare costs and was modeled from Vermont. Healthcare affordability is a shared responsibility, and we must work together to achieve our shared goal of access to affordable care. Delaware has a uniquely growing and aging population. Additionally, healthcare costs are expected to rise nationally through factors hospitals cannot control like drug costs and behavioral health utilization. We’re ready to work together on a solution that ensures access and affordability while building upon our ranking as the #1 state in the nation for hospital quality.”

About the Delaware Healthcare Association

The Delaware Healthcare Association (DHA) was formed in 1967 and is a statewide trade and membership services organization that represents and serves hospitals, health systems, and related healthcare organizations in their role of providing a continuum of appropriate, cost-effective, quality care to improve the health of the people of Delaware. DHA’s mission is to provide policy and advocacy leadership in creating an excellent environment to support our members in helping every Delawarean to be as healthy as they can be.