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S 873

Establishes a healthy savings pilot program

2025 Regular Session Introduced by Jamaal Bailey

Establishes a State Health Planning Council to identify financially distressed hospitals and coordinate early planning to prevent closures and rebalance services.

REFERRED TO HEALTH
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Bill Summary · S 873

Summary — S. 873: An Act relative to hospital closures and health planning

Status: Introduced (Mar 5, 2025). Referred to Health. Hearing scheduled 06/02/2025.
Source: Senate bill (filed Jan 15, 2025). Text partially provided; later sections truncated.

Purpose

S. 873 strengthens statewide and regional health system planning and creates processes to identify and respond to hospitals at financial risk or proposing to close or discontinue essential services. The bill centralizes planning functions within the Executive Office of Health and Human Services and requires closer coordination among state health agencies to inform decision‑making and reduce duplicative reporting.

Key provisions

  • Establishes a Health Planning Council within the Executive Office of Health and Human Services (EOHHS) to develop and update a state health plan at least every 2 years (amending M.G.L. c.6A, §16T).

    • Composition: Secretary of Health & Human Services (chair) and designees from DPH, Medicaid office, Mental Health, Elder Affairs, CHIA, Health Policy Commission, plus 3 governor appointees (must include a health economist; one experienced in health policy/planning; one experienced in healthcare market planning/service‑line analysis).
    • Creates an advisory committee (≤13 members) representing providers, community health centers, academia, payers, consumer reps, labor, workforce development.
    • Requires public access, geographically distributed hearings, and an online portal for comments.

  • Planning scope and methodology

    • Plan must identify needs, resources, and priorities statewide and by regional planning area.
    • Council must establish at least 15 health planning regions and present findings by region, considering chronic disease, outcomes, population, transportation/travel.
    • Plan must make 5‑year recommendations on supply/distribution of resources, identify regional shortages and excesses, and propose statutory/regulatory mechanisms to incentivize rebalancing.

  • Greater emphasis on community‑based healthcare resources (explicitly added to planning scope).

  • Linkages to hospital closure and service‑discontinuation processes

    • Adds direction for the council to make assessments pursuant to M.G.L. c.111 §25C and impact determinations under §51G (hospital closure/essential service discontinuation).
    • Requires EOHHS and member agencies to establish data‑sharing agreements, consistent with privacy laws, to support council work.

  • Health Policy Commission (HPC) review adjustments (amending c.6D §13)

    • Notice from DPH of a proposed hospital closure/essential service discontinuation under c.111 §51G will constitute a “material change” triggering HPC review under §13.
    • HPC must report findings to DPH commissioner. HPC and DPH must enter mutual agreements to share hospital‑provided documentation to reduce duplicative reporting.
    • Such a review under this subsection will not be referred to the Attorney General under §13(f).

  • CHIA reporting (amending c.12C §8)

    • The Center for Health Information and Analysis (CHIA) must identify hospitals in financial distress, including those at risk of closing or discontinuing essential services, and report a list of at‑risk hospitals (confidential under c.66) to the Secretary of HHS, the DPH commissioner, and the HPC at least once every 120 days.

Who is affected

  • Hospitals and provider organizations (especially those financially distressed or contemplating closures/ service reductions).
  • State agencies: EOHHS, Department of Public Health (DPH), Health Policy Commission (HPC), Center for Health Information and Analysis (CHIA), Medicaid office, Department of Mental Health, Secretary of Elder Affairs.
  • Local communities and patients whose access may change due to closures or service shifts.
  • Payers, workforce bodies, and other health system stakeholders involved in planning and advisory processes.

Timeline / procedural notes

  • State health plan: updated at least biennially; makes 5‑year regional recommendations.
  • CHIA at‑risk hospital reporting: no less frequently than every 120 days.
  • DPH notices of closure trigger HPC material change review; the HPC reports to the DPH commissioner.
  • The bill text provided is truncated after further amendments to c.12C §8; additional sections (if any) are not available in the supplied text.

Potential impacts and considerations

  • Likely to improve early identification of at‑risk hospitals and coordinate state responses, enabling more proactive planning and targeted policy interventions.
  • Strengthens regional planning by requiring explicit regional assessments and public participation.
  • Confidential reporting of “at‑risk” hospitals to state officials (not public) may protect sensitive financial information but could limit public transparency.
  • The bill mandates coordination and data sharing but does not appropriate funds in the provided text; effectiveness will depend on agency capacity and implementation details.

Compiled from official sources — confirm details with the bill’s official record.

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