Legislature approves support for fiscally strained health care institutions

Bill directs $234M to hospitals and community health centers around Massachusetts

Special to The Advocate

In September the Massachusetts Legislature passed (148-1 and 39-0) and enacted a supplemental budget bill that prioritizes care for the state’s most vulnerable populations by strategically targeting support to fiscally strained hospitals and community health centers. On September 22, Governor Maura Healey signed the bill into law as Chapter 33 of the Acts of 2025.

The legislation addresses a widening funding gap in the Health Safety Net program, which pays acute care hospitals and community health centers for necessary medical care for low-income, uninsured and underinsured Massachusetts residents. Reckless federal policies and funding shortfalls have exacerbated the fiscal strain on these vital institutions that serve people most in need. This legislative response provides critical relief in the face of an unfriendly federal government and economic headwinds, distributing aid based on criteria that directs funding to vulnerable populations most in need of assistance.

“Massachusetts has a healthcare ecosystem that is the envy of other states, and that doesn’t happen by accident. Supporting every resident is part of what it means to be a leader in healthcare access,” said Senate President Karen E. Spilka (D-Ashland). “This funding will help our hospitals and community health centers provide high-quality care in every region, and provide critical services to our veterans, seniors and municipalities. I’m grateful to Chair Rodrigues for his leadership, Senator Friedman for her unrivaled expertise, my Senate colleagues for their work, and our partners in the House for their support.”

“Our hospitals and community health centers are on the frontlines of care for so many residents in Revere, Saugus and across the Commonwealth. By strengthening the Health Safety Net, this legislation ensures that families who are uninsured or underinsured will not be left without access to the medical care they need. I’m proud to support this funding, which provides critical relief to institutions that serve our most vulnerable neighbors and keeps our communities healthier and stronger,” said Representative Jessica Giannino (D-Revere).

“Massachusetts has been a leader in providing the world’s best health care. The damage caused by the Steward Healthcare bankruptcy and the federal government cuts to health care, I am proud that this Supplemental Budget fills an important void and works to ensure that all residents of Massachusetts have continued access to top of the line health care, regardless of economic status. I will continue to work with Governor Healey and House leadership to keep the Massachusetts health care system as a model to the nation,” said Representative Jeffrey Rosario Turco (D-Winthrop).

Strengthening hospital systems

The funding agreement makes $199 million available for eligible acute care hospitals across the Commonwealth through an approach that maximizes federal financial reimbursements, stabilizes the Health Safety Net Trust Fund and makes targeted payments to hospitals to maximize the impact of taxpayer dollars.

• Provides $122 million in targeted relief payments to certain acute care hospitals utilizing eligibility criteria designed to maximize the impact of taxpayers’ dollars for those hospitals and communities that need it most. The eligibility criteria include:

⚬ Each hospital’s patient mix, prioritizing those that serve the greatest share of the state’s low-income population

⚬ Each hospital’s affordability, prioritizing those that provide services at the most affordable prices

⚬ Each hospital’s financial standing, prioritizing those that have the most severe fiscal strain

• Transfers $77 million into the Health Safety Net Trust Fund to stabilize the program for hospitals providing services to the greatest share of the Commonwealth’s vulnerable populations

Supporting community health centers

Community health centers continue to support the Commonwealth’s greatest share of vulnerable populations while facing federal funding delays, Medicaid cuts, and rising pharmaceutical and other medical costs. The agreement provides $35 million in financial relief to community health centers, including $2.5 million for the Massachusetts League of Community Health Centers to facilitate regional savings initiatives, including shared service options.