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Lawmakers considered defanging controversial Delaware hospital cost review board

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Lawmakers considered defanging controversial Delaware hospital cost review board


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  • Delaware lawmakers considered removing the Diamond State Hospital Cost Review Board’s power to veto hospital budgets.
  • The proposal was ultimately rejected, and the board’s previously frozen funding is expected to be reinstated.
  • This decision follows ongoing debate and lobbying surrounding the board’s authority to control healthcare costs.

This story was produced by Spotlight Delaware as part of a partnership with Delaware Online/The News Journal. For more about Spotlight Delaware, visit www.spotlightdelaware.org.

In the weeks since Delaware’s powerful legislative budget committee froze funding to a health care cost-cutting board, lawmakers circulated a proposal to strip the board of its chief enforcement tool, according to a copy of the proposal obtained by Spotlight Delaware. 

The proposal to remove the board’s ability to veto hospital budgets struck at the heart of its central mission of forcing financial austerity onto the state’s health care systems – including Delaware’s largest and most politically influential one, ChristianaCare. 

It also came after a Delaware judge ruled late last month that ChristianaCare’s legal challenge to the board’s authority over its budgets could continue. 

In the end, lawmakers on the budget-setting Joint Finance Committee decided not to move forward with the proposal. 

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Instead, on Tuesday, June 17, they are expected to simply reinstate the frozen funds to the health care board, called the Diamond State Hospital Cost Review Board.  

Senate Democratic Caucus Chief of Staff Jesse Chadderdon told Spotlight Delaware that lawmakers had discussed the proposal to strip the board of its authority over hospital budgets, but failed to gain a consensus on the matter among the members who sit on the Joint Finance Committee.

The measure to reinstate $1 million that had been frozen from the board two weeks ago was a more palatable proposal, Chadderdon said.

Still, cuts to another $1.5 million in reserve funds, which had been in place for the board’s litigation and other costs, will remain. 

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The fact that legislators, especially those in the State Senate, even considered such a proposal is notable, as statehouse Democrats have defended the merits and need of the board over the objections of Republicans and hospital leaders for more than a year.

It is not immediately clear why lawmakers on the Joint Finance Committee want to undo the funding freeze that they approved just two weeks ago. Chadderdon asserted that the original freeze was unconstitutional. 

When asked about Tuesday’s meeting and about the proposal that had been considered, Rep. Kim Williams (D-Stanton), who chairs the Joint Finance Committee, said simply that the committee is meeting to discuss language in the state’s budget that pertains to the hospital cost review board.

What would the proposal have done?

According to the draft copy of the legislation, which was to be inserted as epilogue language to the annual state operating budget, lawmakers had considered stripping the board of the ability to punish hospital systems that are not compliant with its efforts to rein in costs, including making changes to their budget.

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It would leave a board that was largely tasked with obtaining currently private revenue and expenditure information that would better inform the public of the operation of its hospital systems and writing performance improvement plans for those found to be exceeding cost-containment goals set by the state.

If a hospital system failed to execute an improvement plan though, the board would only be able to extend or amend such a plan, but have no way of enforcing it.

It would also push back implementation of the law to next year.

Fight has drawn on

In all, the developments mark the latest chapter in more than a year of lobbying surrounding the board tasked with bringing down hospital costs in Delaware, which are among the highest in the country. 

It began last spring when hospital board members and administrators flooded Dover wearing white coats in efforts to oppose the bill that created the Diamond State Hospital Cost Review Board.

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It continued late last year when two opposing local lobbying forces – the Delaware Hospital Association and a coalition of public sector unions – each pressured then-Gov. John Carney over whether to nominate members to the newly created state board. 

Carney, who at the time was in his final months as governor, was seen as more supportive of the hospital cost review board than his successor Gov. Matt Meyer. 

Delaware Hospital Association President Brian Frazee told Spotlight Delaware then that Meyer had shown a willingness to make changes to the law that created the board. 

Frazee also said then that his group’s primary complaint was with the review board’s legal authority to modify hospital budgets that its members deem excessive. His comments followed assertions from ChristianaCare that the board threatens the hospital’s ability “to care for the community.” 

But, public sector unions countering Frazee’s lobbying pointed to high health costs in Delaware, and argued in a letter to the governor last year that large portions of the state government’s budget “are being devoured by unchecked health care costs that continue to rise faster than the rate of inflation.”

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Ultimately, Carney did appoint five members of the board in the waning days of his term and Meyer has added two more. They have met a handful of times but have not advanced the mission of the board in significant ways to date.

Lobbying has since sustained through this year’s legislative session, including last month when Delaware Healthcare Association and other nonprofits sent a joint letter to lawmakers urging them to postpone the implementation of the cost review board for one year.  

In response, the coalition of state worker unions again sent a competing letter, calling on the legislature to “reject the Delaware Healthcare Association’s latest request to delay the Board’s work.”

What followed was the Joint Finance Committee decision to freeze funding to the hospital cost review board. 

Williams, the committee chair, told Spotlight Delaware then that her decision to pause the funding wasn’t influenced by lobbying. 

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Instead, she said the state should not continue to pay to implement a board “whose future is so uncertain.”

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Delaware

Unemployment claims in Delaware declined last week

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Unemployment claims in Delaware declined last week


Initial filings for unemployment benefits in Delaware dropped last week compared with the week prior, the U.S. Department of Labor said Thursday.

New jobless claims, a proxy for layoffs, fell to 472 in the week ending November 29, down from 672 the week before, the Labor Department said.

U.S. unemployment claims dropped to 191,000 last week, down 27,000 claims from 218,000 the week prior on a seasonally adjusted basis.

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Nebraska saw the largest percentage increase in weekly claims, with claims jumping by 98.5%. Virgin Islands, meanwhile, saw the largest percentage drop in new claims, with claims dropping by 58.3%.

USA TODAY Co. is publishing localized versions of this story on its news sites across the country, generated with data from the U.S. Department of Labor’s weekly unemployment insurance claims report.



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Delaware rescinds sponsorship contract, citing conflict with Nomad bar owner

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Delaware rescinds sponsorship contract, citing conflict with Nomad bar owner


Why Should Delaware Care?
The Division of Small Business distributes millions in grants and incentives each year to assist small businesses and organizations. But in September, a business owned by a senior agency official received funding from the agency, raising questions about oversight and conflicts of interest.

Officials at the Delaware Division of Small Business recently rescinded a $7,500 sponsorship contract awarded to a Wilmington bar after learning that an owner of the business was the state agency’s own deputy director. 

Beyond returning the money, agency spokesman Rony Baltazar-Lopez told Spotlight Delaware that officials had also imposed “corrective actions,” in response to the apparent conflict of interest. 

Those included “employee education, discipline, and internal policy revisions,” Baltazar-Lopez said in an email. 

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The situation began in late September when the Division of Small Business received an email from Rachel Lindeman, co-owner of the popular Nomad Bar on Orange Street in Wilmington, asking the state to sponsor her networking series for small business owners

The request didn’t appear to raise any alarm, as Division of Small Business Director C.J. Bell responded three hours later stating that his office would award the Nomad a $7,500 sponsorship, according to emails obtained by Spotlight Delaware through an open records request.

Baltazar-Lopez said the sponsorship was the kind of project the office routinely supported. 

What was different though was that the money went to a business co-owned by Jaimie Watts, deputy director of the Division of Small Business.

But the sponsorship was short-lived after officials learned of Watts dual roles.

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Within weeks of Lindeman’s email, state officials quietly opened an internal investigation, rescinded the money, and determined that the sponsorship posed a conflict of interest inside the agency responsible for overseeing millions of dollars in business grants and incentives each year. 

“We recently learned that a sponsorship was issued to a business that was not eligible to receive DSB funding due to its relationship with a state employee,” Baltazar said in his statement.

Spotlight Delaware further asked whether the office has ever rescinded a sponsorship; how long a typical sponsorship decision takes; and what controls exist to ensure contracts do not go to businesses owned by agency staff. The Division of Small Business declined to comment further. 

Watts became deputy director of the Delaware Division of Small Business in April. A month later, she purchased the Nomad Bar with Lindeman. 

Watts also is a member of Spotlight Delaware’s governing board of directors. Read our editorial independence policy here.  

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In an email sent to state officials in October, Lindeman said she had been “informed” that the sponsorship money had to be returned. By early November, an agency official confirmed in an email to a colleague that it had been.

Watts did not answer questions for this story, instead referring Spotlight Delaware to a Division of Small Business spokeswoman.



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Delaware man sentenced to prison after kidnapping, raping woman during crime spree

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Delaware man sentenced to prison after kidnapping, raping woman during crime spree


A Delaware man who was convicted of kidnapping and other offenses for a multi-state crime spree in which he raped a woman at gunpoint has been sentenced to 75 years in prison, officials said.

Tonnaire McNair-Matthews, 26, was sentenced to a total of 900 months, or 75 years, in federal prison for six offenses, including kidnapping, carjacking, robbery, and related firearms offenses, according to the United States Attorney’s Office, District of Delaware. This sentencing follows Nair-Matthews’s conviction on all counts after a July 2024 trial. 

Officials said that court records and evidence presented during the four-day trial, McNair-Matthews conspired with David Hinson, 23, Michael Caldwell, 21, and Mahkiya Powell, 20, to rear-end unsuspecting drivers with a stolen Jeep Grand Cherokee and then rob the drivers when they got out to inspect their vehicles for damage. 

After three unsuccessful attempts, officials said McNair-Matthews rear-ended one victim’s vehicle. When the woman got out, McNair-Matthews abducted her at gunpoint, forcing her back into the passenger seat of her own vehicle. 

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Officials said McNair-Matthews then drove the woman, against her will, from Delaware into Pennsylvania.  During the drive, McNair-Matthews demanded the PIN code for the victim’s bank cards, forced her to disrobe, and “digitally penetrated her against her will.” McNair-Matthews then stopped the vehicle and forcibly raped the victim at gunpoint. 

McNair-Matthews abandoned the victim in Pennsylvania, according to officials. He drove her vehicle back to Delaware, where he visited various convenience stores and used her stolen bank cards and PIN code to withdraw money from ATMs. 

After, officials said McNair-Matthews reunited with Hinson, Powell, and Caldwell in Wilmington. Once there, he provided them with the victim’s bank cards and PIN, as well as the firearm he had used in the carjacking and rape

Hinson, Powell, and Caldwell then cleaned the victim’s car and stole her purse, officials shared.

After McNair-Matthews changed clothes, officials said the four men met up at a Wilmington gas station, where law enforcement found them. McNair-Matthews and Powell quickly fled, leading officers on a high-speed chase in the stolen Jeep. 

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Officials said McNair-Matthews and Powell temporarily evaded police, but McNair-Matthews was found three days later after fleeing to Maryland.

“This was a calculated, predatory attack that shattered an innocent woman’s sense of safety,” Julianne E. Murray, Acting U.S. Attorney for the District of Delaware, said in a news release. “The Court’s sentence delivers justice for a survivor who showed extraordinary courage.  Moreover, it sends a clear message that those who terrorize our communities with violence, intimidation, and exploitation will be pursued, prosecuted, and held fully accountable.  Finally, I commend the vigilant work of the FBI, the Delaware State Police, and the Pennsylvania State Police for swiftly bringing the defendant to justice.”



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