Delaware cannot follow failed model

Delaware is facing millions of dollars in funding cuts to vital health programs and resources. This means health access and outcomes for thousands of people are literally on the line. As federal negotiators put pen to paper this week, the likelihood of deep cuts to Medicaid and other healthcare programs will likely mean more uninsured patients in Delaware, fewer people seeking preventative care, worsening health conditions and more relying on emergency rooms for all their healthcare needs. The recent closure of Crozer Health in nearby Pennsylvania is also putting additional pressure on our nonprofit hospitals. Our nonprofit hospitals will continue to care for every person that enters our doors 24/7/365 regardless of their ability to pay, but federal cuts and more uninsured means lower reimbursement for hospital providers, straining critical resources. 

Implementation of the House Bill 350 law continues without regard for the uncertain realities our hospitals are facing daily, and there is a pending lawsuit that questions the very validity of the law. Additionally, Delaware’s hospital-control board is now estimated to cost more than double original estimates. At a time when we are bracing for federal cuts to Medicaid and other health programs, now is not the time to be wasting $2.5 million in taxpayer funds on a model that has failed in Vermont.

We’re seeing the disastrous consequences when states control hospital budgets play out in real time in Vermont, which was the model the HB 350 law was based on. Vermont has the highest health insurance premium costs in the country and some of the highest healthcare costs in the nation. Most of Vermont’s hospitals are operating at a loss, cutting jobs and services, and several are on the verge of closing. No other state in the country is looking to them for advice on healthcare policy for these reasons. In a recent interview, Vermont’s top healthcare regulator said they are in a crisis situation. We can and should do better in Delaware, especially given our uniquely growing and aging population. 

Delaware recently moved up the ranks to No. 1 in hospital quality, according to U.S. News & World Report. We cannot continue to follow a failed model when there is clearly a better way. The Delaware Health Association and our members believe that transparency and accountability in healthcare will lead to affordability solutions, but this is not the right approach to build a better system for all of us. The facts are clear: the law authorizes a state-run board to ask a hospital for their entire budget and future strategic plans. It has not been determined how hospitals will be held individually accountable to a healthcare spending benchmark, which includes factors outside their control, but if they do exceed the benchmark, the board can place a hospital on a performance improvement plan. The board has the authority to step into their private governance and take over the hospital’s budget if it’s not satisfied with the PIP process. Hospitals are the only healthcare sector impacted by this law.

We need a collaborative approach to ensure quality, accessible, equitable, and affordable care for our patients and communities. DHA is committed to working with state leaders and legislators on solutions that make sense for not only the current climate, but for the future.