A Delaware House committee has passed a bill that would require the state’s nonprofit hospital systems to report their community service spending.
House Bill 326 would require hospitals to report spending on free treatment, support for medical research, health education and prevention programs, grants to community clinics, and social factors that affect health, according to the text of the bill. obligate them to do so.
The bill, sponsored by state Rep. Paul Baumbach (D-Newark), has no Republican co-sponsors.
According to the bill, the report would be submitted by January 31 and made available to the public.
Sponsors noted similar reporting requirements exist in 31 other states, including all of Delaware’s neighbors.
The state’s nonprofit hospital systems issue financial reports to the Internal Revenue Service that are available to the public and may disclose the amount of uncompensated care provided. Applications are also made to Medicare and Medicaid regulatory authorities.
The high market share of the two largest hospital systems, ChristianaCare and Bayhealth, is seen by critics as a contributing factor to the state’s high health care costs.
Sussex County is expected to see increased competition from Bayhealth, Beebe Healthcare and TidalHealth (Seaford).
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