The state and ChristianaCare agree to pause ongoing litigation related to HB 350 and the Diamond State Hospital Cost Review Board.
The deal creates a path forward to settle the case with the focus on enhancing hospital transparency and accountability while including a commitment to negotiated healthcare workforce investments.
The agreement signed by Gov. Matt Meyer and ChristianaCare CEO Dr. Janice Nevin states they will work with legislators to draft and enact legislation that addresses several key issues.
“Every Delawarean deserves access to world-class, affordable healthcare, and together we are working to make that a reality. This agreement keeps healthcare dollars with patients, not in the courtroom,” said Meyer.
Hospitals will still be held to the state’s spending benchmark as required by HB 350 with the Diamond State Hospital Cost Review Board having annual oversight.
But the board will evaluate hospitals based on actual budget information for the most recent year instead of modifying or approving prospective budgets.
Salary reporting will be narrowed to officers, directors, key employees and highest-compensated employees.
If a hospital misses the benchmark, it must submit a Benchmark Compliance Plan to the Board unless exempt through specified cost-containment models.
Benchmark Compliance Plans will start in 2027
ChristianaCare also agrees to enter into data use agreements with the Delaware Health Information Network to provide claims data for employees, retirees and dependents and negotiate in good faith this fall on a health care worker loan forgiveness investment.
“We are encouraged by this important step toward legislation that is reflective of a collaborative process and recognizes the value of working together with health systems to create real solutions on health care costs,” said Nevin. “We remain committed to working with Governor Meyer and our partners across the state to address health care affordability while preserving what matters most: access to high-quality care for Delawareans.”
If the terms of the agreement are met, the litigation will be dismissed, if legislation is not introduced by January 13 and enacted by January 31 it can move forward.
