DELAWARE- The Delaware Healthcare Association is raising alarms over proposed legislation in the General Assembly that they say would risk jobs and cut services across Delaware’s hospital and healthcare system.
Senate Bill 1 aims to prioritize patients and providers by rebalancing healthcare spending and improving access to affordable, high-quality care. The plan builds on the Department of Insurance’s earlier law, which invested more than $203 million in primary care from 2022 to 2025.
While continuing investments in primary care, officials say Senate Bill 1 could conservatively save $282 million over the first five years of full implementation across state-regulated health plans and enrollees. The legislation is ultimately intended to increase funding for primary care, push insurers toward value-based payment models, and tie payments to Medicare rates to limit costs.
According to the Delaware Healthcare Association, however, Delaware hospitals could face $413 million in cuts and 4,000 jobs at risk under Senate Bill 1, nearly three times earlier projections.
Brian Frazee, President and CEO of the Delaware Healthcare Association, said the policy could lead to layoffs and fewer services in high-need areas. “This takes Delaware healthcare backward. We’ve already said no to these bad policy decisions in HB 350, and we have to come together and say no to SB 1,” he said.
Opponents argue SB 1 would also replace experts who make decisions on hospital rates and value base-care and reduce primary care access by undermining hospital resources.
“To attract and retain doctors, nurses and allied health professionals, we need strong hospitals. Siloed policies like Senate Bill 1 will not enhance recruitment and retention at a time when we need more health care, not less, in our uniquely growing and aging state,” Frazee said.
SB 1 was introduced on March 5 and is currently awaiting consideration in Committee. The bill’s primary sponsor is Senator Bryan Townsend.