Delaware General Assembly

Lieu/Substituted 4/23/24

If original bill has not been considered in committee, the substitute takes place of original bill. If original bill has been considered in committee, the substitute will be assigned to committee for consideration.

HB 350

3/21/24

Longhurst

Sen. Townsend

AN ACT TO AMEND TITLE 16 OF THE DELAWARE CODE RELATING TO HOSPITAL COSTS.

This Act creates the Diamond State Hospital Cost Review Board, which will be responsible for review and approval of annual hospital budgets beginning with budgets for calendar year 2026. Hospital budgets established under this process are required to adhere as closely to the spending benchmark as is reasonable given the hospital’s financial position and associated economic factors, promote efficient and economic operations of the hospital, and maintain the hospital’s ability to meet its financial obligations. As a temporary measure until the Board begins operations, hospitals are required to charge no more than 250% of Medicare costs to any payer for hospital services in calendar year 2025. This Substitute Bill differs from the original House Bill No. 350 as follows: It provides additional detail regarding the operation of the Board, budget modifications, and provides an appeal right to the Superior Court. It changes the application of the definition of hospital to exclude psychiatric facilities. Because hospitals may have different fiscal years, the deadline for the Board to issue a final decision on a budget is changed to 90 days before the start of a hospital’s fiscal year rather than a fixed date. The confidentiality provisions for hospital records have been updated. Technical corrections have been made.

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Takes effect upon being signed into law

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