Delaware Gov. Matt Meyer has signed three healthcare bills that will expand charity care eligibility, delay implementation of hospital price caps and temporarily block private equity firms from acquiring the state’s nonprofit hospitals, local news outlet WHYY reported July 20.
The legislation, signed July 20, aims to improve healthcare affordability and access while reshaping how hospitals are reimbursed in the state. The Delaware Healthcare Association ultimately supported all three measures after lawmakers amended the bills during the legislative process.
Three things to know:
1. Senate Bill 13 expands hospital financial assistance.
The legislation broadens eligibility for free and discounted care at Delaware’s nonprofit hospitals, according to Spotlight Delaware. Under the new law, nonprofit hospitals must provide:
- Free care for patients with incomes below 300% of the federal poverty level
- A 75% discount for patients with incomes between 300% and 350% of the federal poverty level
- A 50% discount for patients with incomes between 350% and 400% of the federal poverty level
Patients earning up to 500% of the federal poverty level may also qualify for a 50% discount if their medical bills exceed 10% of their annual income, according to the report. The legislation applies to both insured and uninsured patients.
2. Senate Bill 1 delays hospital price caps while increasing primary care investment.
The amended legislation phases in Medicare-based hospital reimbursement caps later than originally proposed.
Rather than taking effect immediately, hospital price caps will begin in 2029 and be phased in through 2033, ultimately capping reimbursement at 250% of Medicare rates. The law also requires insurers to direct 11.5% of medical spending toward primary care.
The original proposal drew strong opposition from hospitals, with the Delaware Healthcare Association warning it could result in hundreds of millions of dollars in revenue reductions and thousands of lost jobs, according to NBC affiliate Coast TV. Earlier this year, the association estimated the proposal could reduce hospital revenue by up to $413 million and place roughly 4,000 jobs at risk.
“We need healthcare solutions that will close the gaps, not close hospital doors. The reference-based pricing policies in Senate Bill 1 will lead to decisions no one wants to make: Layoffs and even fewer services in high-needs areas of our state,” Brian Frazee, president and CEO of the Delaware Healthcare Association, said in a March 12 news release. “To attract and retain doctors, nurses and allied health professionals, we need strong hospitals. Siloed policies like Senate Bill 1 will not enhance recruitment and retention at a time when we need more health care, not less, in our uniquely growing and aging state.”
The legislation comes as multiple states pursue hospital price caps tied to Medicare rates. Indiana and Vermont enacted similar policies in 2025, while Michigan, Maine, New Jersey, Colorado and New York have considered comparable proposals this year.
3. Senate Bill 313 places a temporary ban on private equity acquisitions.
The legislation establishes a two-year moratorium preventing private equity firms from acquiring Delaware’s nonprofit acute care hospitals through 2028.
Lawmakers introduced the measure following the closure of Upland, Pa.-based Crozer Health System, which raised concerns about preserving access to care across the region. Gov. Meyer said the legislation is intended to keep “profiteers” away from Delaware’s health systems, according to Spotlight Delaware. Crozer was owned and operated by Los Angeles-based Prospect Medical Holdings, which filed for bankruptcy last year and closed or sold most of its hospital footprint.
In a July 20 statement following the bill signing, Delaware Healthcare Association President and CEO Brian Frazee called the 2026 legislative session “historically consequential” for healthcare in the state.
“These new laws will require intentional implementation as hospitals brace for the negative impacts to operations, workforce, and health outcomes as a result of upcoming federal policy challenges, including significant changes to Medicaid coming in 2027,” Mr. Frazee said. “It’s going to take all of us working together to make the First State First in Health.”
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