DOVER, DE - Delaware Governor John Carney has signed a new bill into law that establishes a review board to oversee hospital spending and healthcare costs.
House Bill 350 establishes the Diamond State Hospital Review Board comprised of seven healthcare quality experts tasked with ensuring Delaware’s largest hospitals keep healthcare pricing aligned with annual benchmarks set by the state. Members of the Review Board will be appointed by the Governor and confirmed by the Senate and head of the Delaware Healthcare Association, according to Carney’s Office.
Under the new law, hospitals that exceed their set benchmark will be required to submit a performance improvement plan outlining strategies and steps the hospital will implement to rein in costs.
“Rising health care costs are having a significant impact on Delaware families and state taxpayers, and we’ve been committed to addressing this since the start of my time as Governor,” said Governor Carney. “House Bill 350 will help lower the growth of health care costs in our state, while making sure we’re protecting health care quality and access. I want to thank the hospital systems, members of the General Assembly – particularly Speaker Longhurst and Senator Townsend – and the Department of Health and Social Services for collaborating on this important piece of legislation that will make a positive impact on Delawareans.”
House Bill 350 has stirred controversy in the First State since its introduction in the Delaware Legislature, with opposition to the legislation arguing it could curtail access to care across the state.
The Delaware Healthcare Association initially opposed the bill as well, but adopted a neutral stance after amendments were made to the legislation that added more flexibility to the spending benchmarks.
