DELAWARE – The Delaware Healthcare Association (DHA) is voicing concerns over the newly established hospital cost oversight board, following its latest meeting. The Diamond State Hospital Cost Review Board was created under House Bill 350, passed last year, with the goal of managing healthcare expenses and enhancing transparency. However, the DHA believes the approach may be problematic for the state’s hospitals. DHA President and CEO Brian Frazee expressed reservations about the effectiveness of the new law. He argued that Delaware’s approach to healthcare affordability is unique, but not necessarily beneficial, and compared it to a similar initiative in Vermont that he claims had negative consequences. According to Frazee, Vermont’s healthcare system still faces high costs, with many hospitals operating at a loss, reducing staff, and even closing some facilities. While the DHA supports transparency in the healthcare system and is committed to improving patient care, Frazee raised concerns about the rising costs of running the board. He also noted that the projected budget for the board has significantly exceeded initial estimates, further compounding the issue. In addition to this, the DHA warned that pending federal health funding cuts could create additional financial strain, especially for emergency services. The association called for a more comprehensive, collaborative approach to healthcare reform that includes input from all sectors of the industry. The board is currently set to review budgets for the 2026 calendar year, and while supporters believe it is necessary to control costs, the DHA remains cautious about its potential impact.
