Why does Delaware need to take care of it?
Delaware's hospital costs are some of the highest in the country, affecting individuals and state budgets, with obligations to fund Medicaid and retiree benefits. In response, Delaware lawmakers set up one board to set targets for increasing costs, and another board with the authority to reject hospital budgets that are deemed overload. But those powers have opponents who say it will take away the hospital's power.
The Delaware hospital industry expects health costs to rise again next year, hospital representatives said Thursday during a meeting of state officials tasked with setting industry spending targets.
During the meeting, Christina Bryan of the Delaware Healthcare Association gave a presentation showing a national forecast seeking an 8.5% increase in hospitals, pharmaceuticals and other healthcare costs in 2026.
If it happens in Delaware, it will accumulate in recent years with an increase in healthcare spending of around $2 billion. This is far more than inflation.
In 2023, the average Delawarian spent over $10,500 on health care.
Brian gave a presentation to state health expenditure members of the powerful Delaware Economic and Financial Advisory Board. During the meeting, subcommittee members weighed or looked into whether to approve new targets for increasing Delaware spending. This is an indicator designed to encourage hospitals to more rif-about.
Delaware is one of eight states that set government spending targets for the healthcare industry, known as benchmarks. In 2018, it was GOV at the time. John Carney signed two executive orders to create the Delaware system.
Since then, Delaware has blown past the spending benchmark that was in effect almost every year.
Given the latest benchmarks, Delaware Economic and Financial Advisory Committee Chairman Alan Levin expressed skepticism about the goal that could limit hospital spending below, except in cases where it is “not supported by data.”
Ultimately, subcommittee members did not recommend a new benchmark and instead kicked decisions for later meetings.
The final vote on the benchmark could occur in October during the meeting of Delaware's full economic advisory committee.
The lawsuit has been suspended
State officials discussed health spending goals, even as the lawsuit poses a threat to Delaware's regulatory board, which is responsible for implementing the benchmarks.
The Diamond State Hospital's cost review board, established as a monitoring mechanism to review hospital spending, faces great opposition from the healthcare system. And last year, Delaware's largest hospital system, Christian Carre, sued the state.
In recent filings in the lawsuit, both lawyers agreed to suspend further cases until September 30th in the “interests of the parties and the public.”
When contacted by phone, Kurt Heyman, the state's representative attorney, did not provide details beyond what was said in the filing, so it is unclear whether the suspension means that both parties are working on a settlement.
