Top Dems begin looking past Steward crisis
Jan 09, 2025
BOSTON (SHNS) - Before Gov. Maura Healey signed two major health care bills into law, House Speaker Ron Mariano pledged Wednesday that another crisis like the Steward Health Care bankruptcy will never again roil Massachusetts.
"We're here to say it's never going to happen again," Mariano said. "It will never happen again, no matter how many outsiders come in."
Following an end-of-session breakthrough, Healey, Mariano and Senate President Karen Spilka cracked jokes, lambasted Steward, broadly hinted at additional health care reform this session, and praised the lead negotiators at a bill-signing ceremony that brought top health care leaders and advocates to Beacon Hill.
The laws aim to strengthen state oversight of private equity transactions and pharmacy benefit managers, stiffen penalties for providers who violate data reporting mandates, and rein in the cost of certain prescription drugs. Negotiations on the packages broke down when formal lawmaking ended on Aug. 1, but agreements were reached in late December and the bills were among the last to pass in the 2023-2024 session.
Turning to first-term lawmakers who joined the ceremony on the Grand Staircase, Healey said, "We had the privilege of administering the oath to new senators and new representatives, and like me, isn't it nice to come in and take credit for something that you didn't actually do?"
"I do that all the time. Welcome, welcome -- we look forward to working with all of you," Healey said over loud laughter.
Spilka also struck an upbeat tone as she addressed the audience.
"I'm not going to ask you to raise your hand, but I would bet that nine out of 10 of you never thought we'd be here. Surprise," said Spilka, who also drew laughs.
Later in the ceremony, as her team brought over a desk and dozens of pens to sign the bills, Healey appeared to reframe her earlier quips.
"I know we were joking a little bit about some stuff, and there's a little bit of levity and it's a new year, and that's all good. And I hope no offense taken by anybody," the governor said. "But you know, this is so serious what we're about to do, and it's so important."
The hospital oversight law creates a task force focused on improving primary care access, delivery and financial stability, a priority for Spilka and Healey this session. Healey reiterated her interest in strengthening the state's primary care infrastructure, saying the country doesn't invest enough in the sector.
"But we're going to make a change here in Massachusetts and make sure, through this legislation, that we are making all efforts to invest everything that we can in primary care," Healey said. "Our goal is to direct more of our health care resources to primary care through both MassHealth and the private sector. We'll strengthen our primary care workforce, the frontline providers in both hospitals and community health centers."
Mariano said the prescription drug reform law and greater scrutiny over PBMs could be a lifeline for struggling independent pharmacies. He called it a "real tragedy" to watch their financial challenges and see businesses shutter.
"We're hoping that we can begin to resuscitate the independent pharmacy business," Mariano said. "In Massachusetts, there are a number of people who still want to stay in business. We hear from. There are some people who want to get into the business."
Spilka said the Legislature still has work ahead to regulate private equity in health care, though she insisted Massachusetts is leading the country when it comes to installing protections for patients, communities and employees.
"We know that there is still more to do," Spilka said. "We are still learning more and more over the mess that Steward left us, but we are taking huge steps towards making sure that something like Steward doesn't happen again in Massachusetts."
The Health Policy Commission board will be restructured this summer under one of the new laws, with Auditor Diana DiZoglio losing her appointing authority. HPC Executive Director David Seltz, asked about the impact of the change, told the News Service, "From my perspective and from the staff's perspective, we're really looking forward to having the best quality commissioners."
"We don't really take a position on exactly who the appointing authority is and how that's all going to break down," Seltz added.
Under the law, Seltz pointed out appointed HPC commissioners, who currently serve on a voluntary basis, will now receive a stipend. The stipend amount is capped at 10% of the salary earned by the Administration and Finance secretary, aside from the chair whose amount is capped at 12%, according to a bill summary.
The HPC under the new oversight law gains the authority to continue analyzing transactions after regulators approve deals, including by requiring that additional information be submitted five years after the material change process. Seltz said the HPC can assess how transactions ultimately affect care access, affordability, quality and equity metrics -- and share information with the public if providers do not follow through on their initial goals and promises.
In another new responsibility, Seltz highlighted the new Office of Health Resource Planning at the HPC, tasked with developing a state health plan that forecasts the expected demand, supply and distribution of health care services during a five-year period.
"So when we're faced with the potential of a hospital closure, we're better prepared to understand what the impacts of that are going to be, and so that we can plan -- proactively plan -- rather than react all of the time to these market changes," Seltz said.
He added, "Hopefully, we can also send signals to the marketplace about what we want them to be investing in, and hopefully that can help provider organizations know where we want them to be expanding and investing in, whether that's behavioral health or primary care in what areas, and that may help expedite some of the regulatory review processes."