The Future of Hospitals in New England

In mid-October, the Fund co-sponsored, with the New England States Consortium Systems Organization (NESCSO), a daylong meeting of New England legislative and executive branch officials on the future of hospitals.

Hospitals are large and important institutions in their communities. The Affordable Care Act (ACA), state budget pressures, and other policy reforms have heightened the focus on their various roles and the changing ways in which they operate. To better understand the trends in the hospital operating environment and levers available to policymakers to shape the roles of the institutions, the invitation-only forum provided state health policy leaders from the executive and legislative branches with an opportunity to learn about and discuss the current state of hospitals across New England and the ways that state governments can influence their future direction. Specifically, participants focused on the tools at their disposal—legislation, Medicaid policy, regulation—that could bolster hospitals’ positive impact on the communities they serve.

An introductory presentation by Gary Young, director of the Northeastern University Center for Health Policy and Healthcare Research Professor of Strategic Management and Healthcare Systems, Northeastern University, reviewed ACA provisions and post-ACA legislative/regulatory developments with implications for hospitals. Topics included access to care, payment reform, performance transparency for consumers, population health initiatives, and community benefit requirements. Provider consolidation was also discussed. The Fund, along with NESCSO, will jointly publish Professor Young’s paper in the next few months.

At the end of the meeting, state officials developed a list of joint activities that they could work on together to help them understand the impact of hospital consolidation in the New England region.