Despite strong opposition from the state’s hospital systems and father a lengthy debate, a bill to review and approve their budgets passed the Delaware House.
House Bill 351 was sponsored by House Speaker Valerie Longhurst, D-Bear/Delaware City. The measure passed 21-16, with four absent. All Republican representatives voted no or were absent as the unusual session stretched into the night hours
Legislators are under pressure to address health care costs, which now account for about one-third of the state budget.
Delaware Public Media and other news outlets reported that the bill was debated for hours, and Democrats later used a House rule to shut off what was termed a filibuster by those opposed to it. One House Democrat whose district includes Kent General Bayhealth hospital was upset that he did not get time to speak.
According to a House Republican’s social media post, House Minority Leader Mike Ramone called the maneuver to shut off debate “despicable” and “embarrassing,” adding that it was a callous attempt to gag opponents and disenfranchise anyone not represented by members supporting Speaker Longhurst’s bill. “I’m sad to be part of this legislature,” he told his colleagues.
Democrats, in citing the need to halt debate, said Republicans were engaging in lengthy speeches peppered with questions that led to the proceedings dragging on into the night. Republicans accused Dems of similar behavior.
The legislation would create the Diamond State Hospital Cost Review Board, which would be made up of representatives appointed by the governor and the director of the Delaware Healthcare Association, an organization that includes the state’s hospital systems.
Hospitals would be required to meet a spending increase benchmark. A fiscal note estimated that the annual cost of operating the board would be between $900,000 and $946,000.
An amendment that was passed by the House included the participation of the Healthcare Association’s director and other changes.
The board would have the power to determine whether the budget meets Delaware health cost benchmarks and have the power to enforce its determinations.
The Healthcare Association and member hospital systems argued that the legislation would give politicians control over healthcare spending decisions and lead to the loss of hundreds of millions of dollars in revenue.
Delaware has a handful of hospital systems that include ChristianaCare and Bayhealth, which have large market shares in their territories.
Lack of competition has been cited as a reason for the higher rates. Sussex County has more hospital competition but is dealing with a growing population of elderly residents and a need to add physicians and other professionals.
Longhurst countered the association’s arguments by citing data indicating that the state has one of the nation’s highest healthcare costs.
The legislation now goes to the Senate for consideration.
The state’s hospital systems generate an estimated $10.6 billion in patient revenue and, according to the Delaware Healthcare Association, provide more than $900 million in community services. ChristianaCare, which has been expanding into Maryland and Pennsylvania is Delaware’s largest private employer.
ChristianaCare has been moving from a fee-based system to one based on patient outcomes as a way to improve care and control costs.
