Bill > H2461

This bill aims to improve hospital efficiency by requiring the establishment of a comprehensive Hospital Efficiency Index by a state commission. The index would measure hospital performance across several key areas, including low-value care, avoidable medical services, payment levels compared to quality measures, cost of delivering care, and administrative spending. The commission would develop measures to assess efficiency at both hospital and system levels, hold public hearings before publishing the index, and evaluate and update the index every two years. The bill requires the commission to publish an annual performance report and develop recommendations for enforcement, which could include requiring insurers to apply efficiency adjustments to hospital contracts, mandating efficiency correction action plans for poorly performing hospitals, and potentially prohibiting payment for low-value or avoidable services. The goal is to reduce unnecessary medical spending, improve healthcare quality, and increase overall hospital operational efficiency. The commission would collaborate with various state healthcare agencies and must file a detailed report with recommendations by July 1, 2026, ensuring transparency and public accountability in the process.

Health and Social Services

https://malegislature.gov/Bills/194/H2461