DELAWARE- A new report released on Wednesday by the Delaware Healthcare Association highlights the significant economic and healthcare contributions of hospitals in the First State, along with mounting concerns over potential federal Medicaid cuts.
According to the 2025 Delaware Hospital Impact Report, the state’s hospitals contribute over $9 billion to Delaware’s economy and directly provide more than 28,000 jobs. Including indirect employment, hospital-related work supports more than 50,000 jobs—representing over 10% of the state’s total employment.
“Delaware's hospitals are growing their workforce, services, and facilities to accommodate our state’s unique population,” said Brian Frazee, president and CEO of the Delaware Healthcare Association. “Our new Delaware Hospital Impact Report highlights data to enhance policy discussions and is an acknowledgment of the community leaders and economic drivers that power our local hospitals.”
Delaware’s population presents distinct healthcare challenges, including being the sixth oldest and eighth fastest-growing state in the country, as well as having a higher prevalence of chronic disease. Despite these challenges, the state was recently ranked No. 1 in the nation for hospital quality by U.S. News & World Report.
Economic and community impact
The report emphasized that Delaware hospitals are the largest private sector employers in the state. In addition to the $9 billion economic contribution, hospitals also play a critical role in primary care.
In 2023 alone, Delaware hospitals lost more than $70 million while continuing to invest heavily in ambulatory care and workforce recruitment. Hospitals in the state now employ 487 primary care providers, according to the report. However, shortages persist across the healthcare workforce.
Medicaid changes pose new risks
The report also warns of looming federal policy changes. Under a proposed federal bill, as many as 53,000 people in Delaware could lose Medicaid coverage, with 32,000 becoming uninsured, according to a June 4 analysis from the KFF.
According to the report, Delaware could also lose up to $4 billion in federal Medicaid funding by 2034. The report notes this .