POINT OF VIEW: Hospitals controlled by politicians will lose millions; cuts in services and care that are seen

Legislation advancing in the Delaware General Assembly (HB 350) to put political appointees in charge of controlling our state’s nonprofit hospitals is not what the doctor ordered.

This proposal will immediately cut $360 million from our adult acute care hospitals, and the politically controlled oversight board it creates may make even more cuts. The reduction is due to an arbitrary 250% Medicare cap on the commercial reimbursement provision contained in the bill.

What does this really mean?

An immediate $360 million cut that will cut hospital services, up to 4,000 hospital jobs, specialty care, quality and community programs. It will stop the expansion of services that also affects construction jobs and other trades that are critical to improving our infrastructure and access to health.

Limiting hospital resources to recruit and retain the best doctors and nurses will put the quality and access to health care in the First State at risk. This will also exacerbate the shortage of health care providers in Delaware at a time when our aging population demands more, not fewer, health care providers. As the fifth most populous state in the country, Delaware will find itself mired in a health care crisis.

These cost caps in the bill also put at risk the recent landmark collaboration between Delaware hospitals and policymakers to get Delaware’s Medicaid program more than $100 million in federal funding by establishing a new assessment from the state provider.

The funding is intended to strengthen efforts to improve access, workforce recruitment and retention, behavioral health services and health equity. The 250% Medicare cap proposed in HB 350 would reduce the average commercial fee paid to hospitals too much to make the intended model work.

Clearly, provider assessment negotiations show that hospitals know how to work collaboratively with policymakers for the good health of Delawareans.

Any serious plan to maintain patient quality and access to health care while containing inflationary costs requires insurers, government, professionals, labor, medical device and pharmaceutical companies to work together in collaborative solutions.

Being on the front lines of public health delivery, the member hospitals and health systems that DHA represents respect our obligation to be central to healthcare solutions for the public. With that in mind, we came to the table with meaningful alternatives that address health care affordability, improve transparency, and establish a collaborative effort to identify real solutions to our shared concerns.

Unfortunately, we simply did not have enough time to engage in a meaningful stakeholder process in mass health policy.

All Delawareans should be as shocked as we are that legislative leaders continue to put public health at risk by pushing the flawed health monitoring provisions of HB 350. If Delaware is willing to put political officeholders in charge of oversight of the state largest private sector company, what industry is next?

This is not what the doctor ordered. There is a better way, and we are ready to work together to address our shared concerns and put Delawareans first.

Brian Frazee is president and CEO of the Delaware Healthcare Association, which represents the first state’s hospitals, health systems and health-related organizations.