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Delaware needs to steer clear of Vermont’s healthcare model

September 12, 2025

On Sept. 9, 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 No. 1 state in the nation for hospital quality.

Brian Frazee
President and CEO
Delaware Healthcare Association 
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