DE HB350

Establishes the Diamond State Hospital Cost Review Board consisting of 7 voting members appointed by the Governor and confirmed by the Senate (plus 1 non-voting member from the Delaware Healthcare Association) to review hospital budgets and monitor healthcare spending.

Requires hospitals to submit annual financial information to the Board including operating budgets, spending/revenue data, cost information by service line, utilization data, capital budgets, and payer contracts for budget review and analysis.

Implements a performance improvement plan process beginning in 2026 for hospitals whose actual annual cost growth exceeds the state's spending benchmark, with Board authority to require budget modifications if improvement plans fail.

Imposes temporary price cap restrictions for calendar years 2025-2026 limiting hospital rate increases to the greater of 2% or Core CPI plus 1% compared to previous year rates, with exemptions for hospitals serving fewer than 5% Medicare patients or deriving 45%+ revenue from Medicaid/uninsured patients.

Authorizes civil penalties up to $500,000 for hospitals that knowingly fail to provide required information or adhere to Board standards and procedures; hospitals meeting budget goals for 3 consecutive years may exit the approval process.