The state’s budget-writing committee restores funding to the Diamond State Hospital Cost Review Board after voting to pause funding earlier this month.
The board was legislatively created last year to provide oversight to hospital budgets, ensuring they adhere closely to the state’s healthcare spending benchmark.
The board’s creation is widely controversial and faces a legal challenge from ChristianaCare, which asked the Court of Chancery to rule on its constitutionality.
Among other legal arguments, ChristianaCare says allowing a politically appointed body to override a hospital’s board of directors required a larger vote threshold than it received in the state legislature.
Amid the ongoing litigation, the Joint Finance Committee (JFC) voted to halt all funding less than two weeks ago, but the body reversed that decision on Tuesday.
JFC Chair Kim Williams (D-Stanton) says the committee received nonpartisan legal guidance raising concerns over the constitutionality of reducing funding for public officer compensation.
“Our desire was and continues to be to act in the Delaware taxpayer's best interest as we make these difficult decisions. In light of the legal guidance, we are now taking the necessary step of removing the pause altogether," Rep. Williams said.
The vote to restore the funding was unanimously supported with the exception of State Sen. Dave Lawson (R-Marydel)
“I'm still concerned with the idea that the courts have it, and we're gonna go ahead and move forward without a court decision, and I think that's not in the taxpayer's best interest, and I will be voting no," Sen. Lawson said.
President and CEO of the Delaware Healthcare Association (DHA) Brian Frazee, a non-voting member of the Hospital Cost Review Board, released the following statement after the decision:
“While we are disappointed in Tuesday’s vote, we remain laser focused on ensuring Delaware has a better solution that addresses transparency, collaboration, and accountability around healthcare costs. Now is the time to come together and work on a real solution to meaningfully address healthcare affordability and improve health outcomes for all Delawareans. DHA and our hospital members have fully supported enhanced transparency that will assist with this important effort all along," it reads.
DHA joined other stakeholders in sending a letter to JFC in late May requesting lawmakers delay implementation of the board for one year in the wake of "looming federal funding cuts and because hospitals do not know how they will be held individually accountable to the healthcare spending benchmark."
The board's next meeting is scheduled for July 8.
Rep. Williams says the finalized state budget will be filed later this week and head to the House floor for its first vote.
