A proposal making its way through the Delaware legislature would "devastatingly weaken" Lewes, Del.-based Beebe Healthcare and other community hospitals, its CEO David Tam, MD, said in an op-ed posted on the health system's website.
According to the Delaware Hospital Association, the proposal would impose a 250% of Medicare cap on commercial reimbursement. Dr. Tam said in his op-ed that, if passed as written, Bebee is projected to lose more than $60 million in the next two years, and that figure is estimated to be around $360 million throughout the state.
In addition to the reimbursement cap, the proposed legislation would create a five-member board that would start reviewing and approving hospital budgets in 2026. Three of the members would be appointed by the governor, one by the speaker of the House and one by the president pro tempore of the Senate. The bill has passed the House and will soon be debated in the Senate.
"We believe that budgetary control should stay with local hospitals, their leaders, and the community-based boards that know their communities best," Dr. Tam said. "Our community-based board allows us to nimbly make decisions that address our patients' and community's unique healthcare needs because they understand the unique needs of our population."
The Delaware Hospital Association is also pushing against the legislation, which it said in an April 29 news release "decimates Delaware's healthcare system." The association said it has worked to offer proposals that "address affordability and transparency and establish a collaborative effort to identify realistic solutions to shared cost concerns."
"Only a holistic approach to improving healthcare while addressing costs will benefit Delawareans, and we call on Governor Carney and state senators to join us in developing an approach that will help — not harm — the state of Delaware," Delaware Healthcare Association CEO Brian Frazee said.