To alleviate skyrocketing consumer health care costs
Impact
The changes proposed in this bill are significant as they introduce stringent penalties for health care providers that fail to adhere to mandated performance improvement plans. If a health care entity neglects to file a necessary plan or implements it in bad faith, the bill calls for a substantial civil penalty of $500,000 per day. This shift is expected to incentivize health care providers to improve their operational efficiencies and ensure compliance with state directives aimed at enhancing patient care and containment of costs.
Summary
Senate Bill S787, titled 'An Act to alleviate skyrocketing consumer health care costs,' was introduced by Senator Mark C. Montigny. The primary objective of this legislation is to address the escalating costs associated with consumer health care in the Commonwealth of Massachusetts. The bill proposes amendments to existing regulations governing health care entities, particularly focusing on accountability and performance standards.
Contention
Despite its intent to rein in health care costs, the proposed legislation may encounter opposition from health care organizations concerned about the severity of the penalties. Critics may argue that the punitive measures could discourage providers from operating in the state or lead to increased costs being passed onto consumers. Aspects of the bill that delineate 'good faith' in the implementation of performance improvement plans could also become points of contention, as ambiguity in definition may lead to varied interpretations and enforcement practices.