Malden House delegation applauds passage of hospital regulatory reform bill

Bill addresses health care cost control and hospital oversight requirements in the Commonwealth

BOSTON – On May 16, 2024, the Massachusetts House of Representatives passed (152-1) An Act enhancing the market review process, a bill that seeks to overhaul and update existing regulations surrounding state oversight on hospitals and health care facilities in the Commonwealth. The legislation also addresses ongoing critical services shortages and health care cost rises being experienced by residents across the Commonwealth. As a response to the ongoing Steward Health Care crisis, this bill incorporates policy reforms aimed to protect patients, access to critical services, and smaller community health care providers. On May 20, 2024, the Massachusetts Senate referred this legislation to its Committee on Ways and Means.

In recent years, Massachusetts has seen a significant rise in health care costs while the existing health care providers network has continued to face capacity strains that have resulted in backlogs, closures and rising premiums. If signed into law, An Act enhancing the market review process will be the most significant health care cost control measure passed by the Legislature since 2012 when the state established the Health Policy Commission (HPC) and the Center for Health Information and Analysis, as well as an annual benchmark representing a goal for spending growth in the industry.

Affordability continues to be a key challenge for residents and employers, placing a particular burden on the state’s low-income, minority and elderly populations. This new piece of legislation includes provisions that not only prevents another crisis similar to Steward Health Care but will strengthen protections for patients against loss of services by requiring an independent impact analysis from HPC regulators as well as plans to guarantee access to replacement services in the event of a closure of critical health care service by a provider. The legislation will also require any entity seeking to open an ambulatory surgery center in an area already served by an independent community hospital to first secure the support of that preexisting facility. This measure will reinforce smaller community hospitals against threatening expansions by larger academic medical centers into communities already being serviced.

“This bill takes a critical step forward by provided enhanced protections to any Massachusetts resident who finds themselves in need of critical health care services,” said State Representative Steve Ultrino (D-Malden). “For many communities, costs, waitlists and backlogs have prevented our residents from accessing much needed care. This bill will ensure the state does its part in preventing another crisis – through strengthening industry regulations and oversight and ensuring everyone is held accountable.”

“Massachusetts Residents are currently experiencing unprecedented turmoil in the quality of care they receive due to the ongoing Steward Health Care crisis,” said State Representative Paul Donato (D-Medford). “This landmark legislation will focus on stabilizing our health care system, while strengthening oversight and accountability into the industry to ensure that all residents have access to a more equitable and affordable level of care.”

“Provisions of this legislation including changes to the Massachusetts Health Policy Commission and reforms to improve the financial security of community hospitals are critical to ensuring the long-term sustainability of vital community health centers like MelroseWakefield Hospital, which serves as a bedrock in this region,” said State Representative Kate Lipper-Garabedian (D-Melrose). “The bill further takes important steps toward transparency, accountability, and accessibility regarding the provision of care at our hospitals and health care facilities across the Commonwealth.”