A legislative effort that started in Delaware’s House of Representatives two years ago is about to come full circle.
The House will hear Senate Bill 213 next week, after the senate chamber moved it forward on Tuesday.
Senate Bill 213 is a revised version of a house measure introduced in March 2024 and signed into law that June. It created the Diamond State Hospital Cost Review Board, a governor-appointed group to review and approve hospital budgets.
The law was quickly challenged in Delaware’s Court of Chancery by the state’s largest hospital system, ChristianaCare. The healthcare provider and governor’s office started negotiations after the court denied the state’s motion to dismiss the complaint.
Senate Bill 213 is the result of those negotiations, said Senator Brian Townsend (D-Newark). He was a co-sponsor of House Bill 350 two years ago and is Senate Bill 213’s primary sponsor.
“It still keeps us in a place where the front-end transparency is paramount,” Townsend said.
Senate Bill 213 has a few components that separate it from the 2024 effort. Namely, the Diamond State Hospital Cost Review Board will not review and approve hospitals’ upcoming budgets. Rather, hospitals will present the previous year's expenditures and revenue for the state to assess.
ChristianaCare agreed to drop its complaint if the state’s legislature adopts SB 213 by the end of January.
During SB 213’s Tuesday Senate reading, Senator Spiros Mantzavinos voted to support the bill.
“I appreciate there was a settlement, and we were able to move forward,” Mantzavinos said. “But how we got here really gives me some heartburn.”
Defendants who were not part of 2024’s legislative process participated in the settlement negotiations, Mantzavinos said.
Mantzavinos referenced a press release that said the settlement signed by Governor Matt Meyer’s office ChristianaCare, “shows collaboration between the two parties.”
“We're a party, and we're not in this,” Mantzavinos said. “But this is legislative solution.”
Senate Bill 213 will affect six health systems, according to the Delaware Healthcare Association. It’s one of the most active healthcare lobbying groups in the state, representing interests for the state’s health systems.
Its president and CEO Brian Frazee said the settlement strikes at two issues his association supports: maintaining Delaware’s high national ranking in healthcare quality and increased financial transparency in healthcare.
“Senate Bill 213 is a way that we can move forward together,” he said. “We're still held accountable to the healthcare spending benchmark, and we're incentivized to increase our value-based care efforts.”
The senate unanimously voted to support SB 213.
It heads to the house for consideration, before lawmakers break for budget hearings.
