DELAWARE- The Delaware Healthcare Association is voicing concern over the state’s new approach to hospital cost oversight, following the latest meeting of the Diamond State Hospital Cost Review Board.
The board was established under House Bill 350, which became law last year, with the goal of controlling healthcare costs and increasing transparency. But Delaware Healthcare Association President and CEO Brian Frazee said the process so far has raised serious concerns for hospitals.
“No other state in the country has passed a law to address healthcare affordability in a silo like Delaware and that is a disservice to the residents of our state. The HB 350 law is modeled from a failed Vermont experiment that has had disastrous consequences," Frazee said.
"Vermont still has some of the highest healthcare costs in the nation while most hospitals are operating at a loss, cutting jobs and services, and several are on the verge of closing.”
Frazee said Delaware’s hospitals support transparency and remain committed to investing in patients, the healthcare workforce, and their communities. But he questioned the effectiveness and cost of the board, which he said is now expected to cost more than double the original estimates.
He also pointed to looming federal health funding cuts as an added challenge, warning that the state may need to step in to fill gaps if funding shortfalls continue.
“Our hospitals will remain open 24/7, but reduced coverage and lower reimbursements could mean fewer resources and more strain on emergency services,” Frazee said. “We need a collaborative, data-driven approach that involves all sectors of healthcare.”
The association says it wants to work with policymakers on long-term solutions, but remains skeptical that the board, as designed, will improve access or outcomes.
Supporters of HB 350 say the board provides critical oversight in a state with rising healthcare costs. The board’s budget review process is set to begin for the 2026 calendar year.
