House passes legislation to balance health care market, protect vulnerable hospitals

  On November 17, 2021, to protect community hospitals, State Representative Joseph McGonagle and his Massachusetts House colleagues recently passed (158-1) H.4262, An Act enhancing the market review process, to promote a more balanced health care market by strengthening the regulatory processes for health care expansions. The legislation creates a more rigorous review to ensure that when large hospital systems expand, they are not infringing on community hospital markets and raising health care costs for patients. It also requires the ongoing upkeep of a health resource inventory, which will give regulators a better understanding of the Commonwealth’s existing health care resources to inform these review processes and future reform efforts. H.4262 now goes to the Senate.

  “The House took a major step in working to guarantee that every Massachusetts resident has access to quality, affordable health care by passing legislation that will protect community hospitals,” said Speaker of the House Ronald Mariano. “Community hospitals offer high-quality care to the most vulnerable patient populations at affordable rates. Our efforts to control health care cost growth depends on their continued existence.”

  The legislation continues the House’s commitment to health care as demonstrated in Massachusetts’s health care reform law of 2006 and the landmark cost containment law of 2012. Community hospitals operate on thin margins and with the constant possibility of closure. H.4262 limits unchecked growth of hospital chains, better suiting community hospitals to survive and ensuring continued competition in the health care market.

  “I am thrilled with this bill and very proud we passed it amidst an ongoing healthcare crisis,” said McGonagle. “Our hospitals, healthcare facilities and their workers have continued to work courageously and tirelessly, not just against COVID-19, but also all the other everyday medical needs of the Commonwealth. In Everett, many of us rely on our community hospital, which is always in danger of being overtaken. This legislation will support our community hospitals and keep Everett safe, strong and healthy.”

  An Act enhancing the market review process:

• Expands and strengthens the material change notice (MCN) process of the Health Policy Commission (HPC) to include a broader range of transactions and give cost and market impact reviews (CMIRs) more weight in the Determination of Need (DoN) and Attorney General (AGO) proceedings
• Requires the Department of Public Health (DPH) to consider additional sources of information, including CMIRs and Center for Health Information and Analysis (CHIA) data, as part of the DoN process
• Re-establishes a health planning council that will assist DPH in maintaining an inventory of health care resources to inform the MCN process and better assess the appropriateness of DoN applications
• Protects independent community hospitals’ markets and gives hospitals another tool to halt DoN proceedings should a proposed project encroach on their primary service area