Governor Healey Signs Bill Providing Critical Funding for Hospitals and Community Health Centers in Massachusetts

Governor Healey Signs Bill Providing Critical Funding for Hospitals and Community Health Centers in Massachusetts   

BOSTON – Today, Governor Maura Healey signed An Act making appropriations for fiscal year 2025 to provide for supplementing certain existing appropriations and for certain other activities and projects to ensure critical funding for hospitals and community health centers in Massachusetts while also reimbursing for services for uninsured and underinsured residents.  

“It is important to support our hospitals and community health centers so our residents get the access and quality of care they deserve across Massachusetts. This package is a step forward in maintaining our world-class health care ecosystem,” said Governor Maura Healey. “We have the best hospitals in the world, but with existing strains on our health care system and the harm coming from President Trump’s budget cuts, we need to support our trusted institutions that provide people the care they need. I’m grateful for the Legislature for passing this essential funding.”  

“This key legislation will support our hospitals across Massachusetts with the important funding they need to continue to deliver care and high-quality services for patients,” said Lieutenant Governor Kim Driscoll. “At a time when we’re seeing major threats to our health care systems, it’s more important now than ever before to stand up in support of quality care.” 

“HSN represents the foundation of dignity in health care: a guarantee that you can receive emergency care wherever you in the state, regardless of insurance status.  This legislation provides stability for both patients and health care providers. People in Massachusetts can continue to seek the care they need and our hospitals and community health centers can continue their mission to support their communities,” said Health and Human Services Secretary Mahaniah, MD, MBA. “We will continue to adapt to additional pressures on our Health Safety Net and work closely with stakeholders, including regular meetings with hospital providers, to ensure continued access to care for residents.” 

“This funding will help to ensure that financially strained hospitals and community health centers can continue to serve patients across Massachusetts,” said House Speaker Ronald J. Mariano (D-Quincy). “As broad fiscal uncertainty and actions taken by the Trump Administration continue to exacerbate the challenges that hospitals are already facing, this supplemental budget is the latest example of the work that we are doing here in Massachusetts to provide targeted support where it is needed most. I want to thank Governor Healey, along with Chair Michlewitz, Chair Lawn and all my colleagues in the House, as well as our partners in the Senate, for recognizing the need for this funding.” 

“Massachusetts has a healthcare ecosystem that is the envy of other states, and that doesn’t happen by accident. It is in large part because of our health care providers' commitment to providing top-notch care to every resident who comes through their doors,” said Senate President Karen E. Spilka (D-Ashland). “This funding will help stabilize our hospitals and community health centers as we continue to face federal chaos. I’m proud that the Senate led the charge on this, and I'm grateful to the Governor for her quick signature." 

Key provisions of the bill include: 

• $122 million for acute care hospitals serving a high percentage of low-income patients and under financial distress. 

• $77 million for the Health Safety Net Trust Fund, to reimburse hospitals and community health centers for services provided to uninsured and underinsured individuals. 

• An additional $35 million to community health centers and hospital licensed health centers, including $2.5 million earmarked for shared services. 

While the state experiences significant demand for uncompensated care every year, hospitals and health centers are more acutely feeling strain this year due to more hospitals accepting patients on public payor insurance, growing expenses and increased use of services. In order to address the immediate shortfall, the Healey-Driscoll Administration and partners in the Legislature moved quickly to provide additional funding and relief for hospitals and community health centers.  

"This legislation will offer critical relief towards hospitals and community health centers all across the Commonwealth. In the midst of serious turmoil and spending cuts from the federal government, these funds will provide immediate assistance to our most vulnerable populations”, said Representative Aaron Michlewitz, Chair of the House Committee on Ways & Means (D-Boston). "I want to thank Speaker Mariano, and all my colleagues in the Legislature for supporting this initiative. I also want to thank Governor Healey for her timely approval of this important funding package and for her commitment to protecting the Commonwealth's health care infrastructure." 

“With the stroke of Governor Healey's pen, this $234 million relief package will provide an infusion of critical financial support to fiscally strained hospitals and community health centers, up against increasing health care costs exacerbated by continued economic and federal uncertainty” said Senator Michael J. Rodrigues (D-Westport), Chair of the Senate Committee on Ways and Means. “I would like to thank the Governor and her team for their swift action, along with Senate President Spilka, my Senate colleagues, and our partners in the House for their efforts and collaboration to ensure we can deliver this vital assistance to the health care providers who represent the backbone of our Commonwealth's healthcare ecosystem." 

“Our hospitals and community health centers continue to step up to care for those most in need despite being under enormous financial pressure," said Senator Cindy F. Friedman (D-Arlington), Senate Chair of the Joint Committee on Health Care Financing. "New policies from the federal government will only exacerbate the strain on our health care infrastructure, so for Massachusetts to continue to be a leader in providing exceptional health care, we need care to be accessible, especially to our most vulnerable populations. I am thankful to the Governor and my colleagues in the Legislature for prioritizing this supplemental budget to deliver necessary funding to ensure access to care.”  

“Thank you to the Healey Administration, House and Senate leadership, and all of my colleagues for recognizing the urgency of delivering critical funding to support our hospitals and community health centers,” said Representative John Lawn (D-Watertown), House Chair of the Joint Committee on Health Care Financing. “The Commonwealth will not turn away patients, abandon providers or retreat from our responsibility to ensure that every resident has access to high-quality care.”