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

Updated regulations would require health care expansions to undergo further regulatory review

  On November 17, 2021, to protect community hospitals, the Massachusetts House of Representatives passed H.4253, “An Act enhancing the market review process” (158-1), which promotes 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. H.4253 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.

  The Senate will now consider “An Act enhancing the market review process.”

  “Yesterday, 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 J. Mariano (D-Quincy). “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.”

  “Last week, I was proud to support legislation that will protect community hospitals in the state of Massachusetts. This law will ensure rigorous review processes to make sure that when large healthcare systems are looking to expand that they are not infringing upon community hospital markets,” said Representative Paul Donato of Medford. “This is especially important in the 35th Middlesex District as we make sure that our community hospitals Like Lawrence Memorial Hospital, Winchester Hospital, and Melrose-Wakefield Hospital are not hurt by private healthcare expansion. As always, I will continue to fight to make sure healthcare remains accessible and affordable to all our citizens.”

  H.4253 continues the House’s commitment to health care as demonstrated in Massachusetts’ health care reform law of 2006 and in the landmark cost containment law of 2012. Community hospitals operate on thin margins and with the constant possibility of closure. H.4253 limits unchecked growth of hospital chains, better suiting community hospitals to survive and ensuring continued competition in the health care market.

  “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 & 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