March 20, 2024

The Medical Society of Delaware (MSD) is closely monitoring and evaluating two important legislative items that could significantly impact healthcare across the state. Please note that currently, MSD has not taken a position on either item.  

DIAMOND STATE HOSPITAL COST REVIEW BOARD

HB 350 was introduced on March 12, 2024, by Speaker Longhurst. A surprise to many in health care, this Act creates a Hospital Cost Review Board that would be responsible for the review and approval of annual hospital budgets, starting in calendar year 2026. Hospital budgets established under this process are required to adhere as closely to the spending benchmark as is reasonable, given the hospital’s financial position and associated economic factors, promote efficient and economic operations of the hospital, and maintain the hospital’s ability to meet its financial obligations. As a temporary measure until the Board begins operations, hospitals are required to charge no more than 250% of Medicare costs to any payer for hospital services in calendar year 2025.

MSD would like to better understand the impacts on our employed member physicians, those affiliated with hospitals, as well as community physicians.

PROTECT MEDICAID ACT OF 2024

At the same time, Senator McBride is proposing legislation to unlock new sources of federal funding that will bolster Medicaid in Delaware. As the State struggles to keep pace with rising costs, Senator McBride has engaged the Delaware Healthcare Association in drafting the legislation. The Senator announced her Protect Medicaid Act of 2024 on March 18th in a press conference. Her proposed legislation could potentially secure $100 million in funding for Delaware Medicaid. According to a Delaware Public Media article, Delaware is one of only six states without a facility assessment on hospitals. Delaware currently has a facility assessment on nursing facilities.  

Senate Bill 13 will be officially introduced in the Delaware General Assembly next Tuesday and assigned to the Senate Health and Social Services Committee. MSD will review to determine its position, pending the introduction of the bill.

A full eLegislative Update summarizing advocacy activities in March will be released next week. 

For comments or questions regarding these topics or MSD’s activities in Legislative Hall, please contact:

Lisa Gruss, External Affairs and Development Officer at lisa.gruss@medsocdel.org

Mark Thompson, Executive Director at mark.thompson@medsocdel.org

Lincoln Willis, Contract Lobbyist at lincoln.willis@thewillisgroup.com