Governor Carney Signs Legislation to Limit Growth in Health Care Spending

HJR 7 will establish health care spending benchmark linked to economic growth 

WILMINGTON, Del. – Governor John Carney on Thursday signed House Joint Resolution 7 granting authority to the Department of Health and Social Services (DHSS) to establish a health care spending benchmark for Delaware with a growth rate linked to the overall economy of the state. The signing ceremony comes less than three months after a federal analysis found Delaware had the third-highest per capita level of health spending of all the states.

 

House Joint Resolution 7, Gov. Carney signs HJR 7.sponsored by House Majority Leader Valerie Longhurst and Democratic leadership, and supported by both parties, authorizes DHSS Secretary Dr. Kara Odom Walker to establish the benchmark as a way to evaluate the total cost of care of health care in the state. The benchmark also will serve as a major step in transforming Delaware’s health care system to a more outcome-driven system and away from a system that pays for care based solely on the number of room days, visits, procedures and tests. Co-sponsors of the resolution included Speaker Pete Schwartzkopf and Rep. John Viola, and Senate President Pro Tem David McBride and Sens. Margaret Rose Henry and Nicole Poore.

Delaware’s per capita health care costs are more than 27 percent above the U.S. average, ranking the state third-highest in the country, behind only Alaska and Massachusetts, according to spending data released in June by the Centers for Medicare and Medicaid Services (CMS). The CMS analysis of all insurance payers – Medicare, Medicaid and private – found that per capita spending in Delaware for 2014 was $10,254, compared to the U.S. average of $8,045. Without changes, the analysis estimates that Delaware’s total health care spending will more than double from $9.5 billion in 2014 to $21.5 billion in 2025.

“The health care spending path we are on is unsustainable,” said Governor Carney, who signed the resolution during a ceremony at Saint Francis LIFE in Wilmington, which provides all-inclusive care for more than 220 eligible seniors who continue to live in the community. “If these health care spending rates were to continue to increase at this pace, we would price too many Delawareans out of the health care system, put too high a financial burden on employers, and eat up larger and larger portions of the state government budget. We can’t afford any of those scenarios. The health care spending benchmark will provide us with the opportunity to transform the way we pay for health care and link that cost to the state’s overall economy. The two should go hand in hand.”

“Health care, both access to quality care and rising costs, is a priority and concern that affects all Delawareans,” said Lt. Governor Bethany Hall-Long. “With over 80 percent of the health care costs going to 20 percent of the population, we must invest more in outreach and prevention to make quality health care more affordable for everyone. It especially places an unfair burden on our senior population. As a nurse, I believe this benchmark is a crucial first step and I applaud the legislators, stakeholders, and Secretary Walker for working to provide affordable quality health care for all Delawareans.”

“Health care costs account for a significant chunk of Delaware’s total budget – about $1 billion – and they continue to rise. It’s time to analyze those costs and find substantial ways to improve the overall health of Delawareans without such a burdensome price tag,” said House Majority Leader Valerie Longhurst, prime sponsor of House Joint Resolution 7. “It’s my hope that this resolution will help bring a variety of health care stakeholders and perspectives together to create a benchmark that will improve the quality of health services in our state at a lower cost. We have the chance to change the trajectory of health care in Delaware, and support our residents in becoming healthier and more successful throughout their lives.”

“Saint Francis LIFE, a program of all-inclusive care for the elderly (PACE), is a strong example of how the state can provide quality care in the community, improve the patient experience and reduce cost,” said David A. Ricci, President and CEO of Saint Francis Healthcare in Wilmington. “We are proud to be a model of this ‘triple aim’ of health care in Delaware.”

The joint resolution sets up a planning year for the health care spending benchmark in Fiscal Year 2018 in which Secretary Walker will plan with health care stakeholders how to establish the benchmark, determine the sources of data and collect actuarial certification. The resolution details that benchmark planning will include an assessment of health care costs and payment reform efforts, and the development of processes to evaluate and implement the benchmark.The benchmark will allow the state to look at the growth of costs associated with hospitals, physicians, other health care providers, pharmaceuticals and insurers by comparing their growth rate to the growth rate of the state’s overall economy. This is the first step in providing transparency and accountability among payers and providers in health care.

DHSS Secretary Dr. Kara Odom Walker, who has been leading a statewide discussion on accelerating health care payment reform, said the increased demand for health care, as well as inefficiencies in the supply of that care, have led to the high per-capital spending in Delaware.

“Unfortunately, while we spend more on care, our investments have not led to better health or better outcomes for Delawareans,” she said. “The spending benchmark will improve the quality of health care in Delaware and reduce costs throughout the system by means of increased transparency, better efficiencies and system-wide innovation. I look forward to continuing my work with stakeholders to establish the benchmark.”

Delaware ranks 31st among states in America’s Health Rankings, exceeding the national average in cancer deaths per capita, cardiovascular deaths per capita, diabetes per capita, infant mortality and premature death.

“Now is the time for Delaware to embrace the concept of a benchmark for health care spending that will ultimately drive our efforts toward value-based care and better outcomes for our citizens and away from volume of care and high utilization,” Secretary Walker said.

Of the $10,254 per capita figure in Delaware, the federal analysis found this breakdown of spending:

  • $4,078 for hospital care;
  • $2,259 for physician and clinical services;
  • $1,525 for drugs and other medical nondurables;
  • $1,438 for nursing home, home health and other personal care;
  • $757 for dental and other professional services;
  • $197 for medical durables.

In all six categories, spending in Delaware was higher than the national average, ranging from a high of 37 percent higher for drugs and other medical nondurables, to a low of 18 percent higher for nursing home, home health and other personal care.

In a health care spending benchmark, all of the costs in the health care system are measured – commercial health coverage, Medicaid, Medicare and out-of-pocket spending by consumers. A rate of growth is set, usually by an independent government commission, to the growth of the overall state’s economy.

Along with the leadership of the Delaware Center for Health Innovation (DCHI), Delaware has been moving toward a more integrated and coordinated health care system that is team-based, especially for people with the most complex chronic conditions, has strong primary care, integrated behavioral health care, and can share information across settings to reduce waste and avoidable health care utilization. In a value-based systems, consumers and employers are given information about price and quality so they can engage in more decisions about their own care.

“The philosophy of Saint Francis LIFE is that it’s better for seniors to continue living in the community as long as medically possible,” said Amy Milligan, Executive Director of the program which now serves 223 New Castle County seniors. “LIFE’s team of health care experts provides coordinated, comprehensive care for this vulnerable population to help them achieve this goal.”

LIFE, which stands for Living Independently for Elders, is one of more than 100 PACE programs in the United States that offer this unique model of care, and the only one in Delaware. In partnership with CMS and the DHSS’ Division of Medicaid and Medical Assistance, the LIFE program serves individuals who are 55 or older; live in the New Castle County service area; are certified as needing long-term care services and supports; and can live safely at home with the support of the LIFE team. LIFE operates under the umbrella of Saint Francis Healthcare, which is a member of Trinity Health, the second largest faith-based health care ministry in the United States.

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Governor Carney Signs Anti-Blight Legislation

Bills will give local governments new tools to address vacant homes, strengthen neighborhoods

NEW CASTLE, Del. – Governor John Carney on Thursday signed into law House Bills 187 and 188, bipartisan legislation that give new tools to local governments to fight neighborhood blight and combat vacant or abandoned homes.

Representatives J.J. Johnson, Stephanie T. Bolden, Joseph Miro, Daniel Short, John Mitchell and Kim Williams, and Senators Bryan Townsend, Margaret Rose Henry and Stephanie Hansen sponsored the two bills, which passed the General Assembly unanimously in June.

Governor Carney signed the legislation at a vacant home purchased by New Castle County with state funds as part of an anti-blight initiative in the Garfield Park community near New Castle.

House Bill 187 will allow local governments to prequalify bidders at sheriff’s sales to restrict bidders who are delinquent on property taxes or violating property maintenance codes. House Bill 188 will allow local governments to place a lien on a vacant property in violation of maintenance standards to recoup enforcement and abatement costs.

“Vacant and abandoned properties can bring down property values, attract crime and make neighborhoods unattractive places to live, work and play,” said Governor Carney. “Strengthening our communities requires creative solutions to the problems we face, and new tools such as these will help local leaders effectively combat blight by directly addressing vacant homes. Delaware has invested $8.25 million in Strong Neighborhoods funding to redevelop housing in communities such as Garfield Park, which is leading to $35 million in other investment, and we must continue to work supporting residents who want to create safe streets and livable communities.”

Vacant and abandoned homes become breeding grounds for crime and dumping grounds for trash, are targets for arson and become a health and safety hazard for their surrounding communities. These properties also drive costs to county taxpayers, diverting public safety resources, and force local government to pay for basic maintenance, grass mowing, and waste removal. Additionally, vacant and abandoned housing has been shown to depress neighborhood property values and reduce tax revenues that fund critical public services.

“We want our neighbors to have pride in their communities, but housing vacancies overwhelm too many regions of our state and cause a host of problems in its tracks. House Bills 187 and 188 provide a beacon of light in those situations. With these bills, local governments are empowered to take charge of blight in these communities by ultimately working to return vacant properties to use and helping Delawareans restore that pride,” said Representative James Johnson, D-New Castle, prime sponsor of the bills. “Our residents – and their homes- deserve that attention. By eliminating blight we will be able to foster a new sense of community and responsibility.”

“This legislation is all about holding real estate investors accountable and promoting vibrancy in our communities,” said Senator Bryan Townsend, D-Newark. “Neglected properties and blight are having a real impact on crime rates, property values, and quality of life for Delawareans. Investors and people who want to be able take ownership of homes must also take ownership of maintaining them, not just rely on the community and taxpayers to foot the bill for blight.  Coupled with investments in open-space for established neighborhoods, the tools in this legislation can be of great help to promoting the safety and prosperity we should want all Delawareans to enjoy.”

“By turning vacant places across our county and state into livable spaces we will reduce crime, lift property values, and turn liabilities into opportunities for hardworking new homeowners,” said New Castle County Executive Matthew Meyer. “City, county and state collaborated to create stronger policies, and we thank Governor Carney and the leadership of the General Assembly who saw the value in the legislation being enacted today.”

“As a former president of New Castle County Council, I know all too well the cost of blight for local governments,” said Senator Stephanie Hansen, D-Middletown. “The downward spiral that blight creates for entire communities is stunning. It’s not just the risk of crime or fire—studies show that vacant and abandoned homes can affect surrounding residents’ physical and mental health. These bills offer invaluable tools that protect our communities from speculators who try to game the system at our expense, and leave taxpayers and responsible property owners holding the bill. I’m glad to have supported it, and hope to continue working with state and local officials to protect and revitalize our neighborhoods.”

“These new tools build upon the work of the Strong Neighborhoods Housing Fund in purchasing, renovating and selling formerly vacant, abandoned or blighted properties, turning 181 empty homes or vacant lots into owner-occupied homes that brighten a street,” said Anas Ben Addi, Director of the Delaware State Housing Authority. “These partnerships with local governments and nonprofit partners help improve the quality of life for our residents and make Delaware a better place to live.”

“I have seen the negative effects that vacant, abandoned and blighted properties have on vibrant neighborhoods such as ours,” said Lee Jarmon, president of the Overview Gardens Garfield Park Civic Association. “I commend the state, county and other local leaders for working together to pass legislation to address and help to remedy this serious issue.”

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Governor Carney Signs Executive Order to Establish Advisory Council on Connected and Autonomous Vehicles

Council will study economic development opportunities, infrastructure needs, and report to Governor and General Assembly

WILMINGTON, Del. – Governor John Carney on Tuesday signed an executive order establishing an advisory council on connected and autonomous vehicles to ensure that Delaware remains at the forefront of emerging transportation technology, and to evaluate the technology’s impact on public safety, cybersecurity, and the design of Delaware’s transportation network.

Governor Carney Signs Executive Order to Establish Advisory Council on Connected and Autonomous

The 19-member council will develop recommendations for innovative tools and strategies that can be used to prepare Delaware’s transportation network for connected and autonomous vehicles, and the council will report back to the Governor and the General Assembly by September 2018.

Governor Carney signed the executive order on Tuesday morning at AAA Mid-Atlantic’s headquarters in Wilmington.

“We must remain forward-looking to ensure that Delawareans can capitalize on the economic benefits of new technology, and to position our state as a leader in the 21st century economy,” said Governor Carney. “Delaware can and should be a proving ground for this new technology. This council will help us identify economic opportunities related to connected and autonomous vehicles, and address potential issues as manufacturers continue to develop this new technology.”

Full text of Executive Order #14 is available here.

Governor Carney signed the executive order just days after signing the Advanced Wireless Infrastructure Investment Act, bipartisan legislation that will accelerate investments in mobile broadband infrastructure, expand access to high-speed internet for Delawareans and businesses across the state, and encourage innovation.

Expanding broadband access was a recommendation of Governor Carney’s Action Plan For Delaware. Delaware’s robust telecommunications system could position the state as an early adopter of new vehicle technology, and as a home for manufacturers and innovators.

Governor Carney speaks at Executive Order signing.The advisory council on connected and autonomous vehicles will bring together state government officials, industry representatives, state lawmakers, city planners, and representatives from institutions of higher education to study the issue and its potential opportunities for Delaware. Specifically, the council will develop recommendations related to economic development; technology, security, and privacy; transportation network infrastructure; and the impact of emerging technologies on public and highway safety.

“As automated vehicle technology continues to develop, this council will help inform and guide how Delaware can be best positioned to take advantage of this opportunity,” said Jennifer Cohan, Secretary of the Delaware Department of Transportation.

“As the motorist’s advocate, AAA’s goal is to support autonomous vehicle innovation with an eye toward safety and ease of consumer use and understanding,” said Berni Koch, CEO of AAA Mid-Atlantic.  “We appreciate the opportunity to serve on the state’s AV Task Force, and applaud the leadership of Governor Carney and the hard work by Secretary Cohan and her team to position Delaware on the leading edge of an evolution in transportation.”

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Additional photos from the executive order signing are available here.

 

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Governor Carney Releases Final Report of Department of Correction Independent Review

WILMINGTON, Del. Governor John Carney on Friday released the final report of the Independent Review into the events of February 1 and February 2 at James T. Vaughn Correctional Center, and issued the following statement:

“Thank you to Judge Chapman and former U.S. Attorney Oberly for their hard work on this Independent Review. Their recommendations from June, and in this final report, will help us make real, lasting change. This much is clear: we have systemic issues within our correctional system that must be addressed, and we are committed to addressing them. We’ve already made progress, but there is more work ahead of us. In the coming days, we will review these final recommendations in more detail. And we will take appropriate action that will continue to improve safety and security for officers and inmates inside our facilities. As I said in June when we received the initial report of the Independent Review, we owe that to Lieutenant Floyd and all of the victims of the events on February 1.”

Learn more about Governor Carney’s actions since receiving the initial report in June.

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State of Delaware, City of Wilmington Collaborate on Mobile Jobs Unit in Wilmington

Department of Labor bus will connect Wilmington residents with job-seeking resources in their communities

WILMINGTON, Del. – Governor John Carney, Wilmington Mayor Mike Purzycki, and Delaware Labor Secretary Patrice Gilliam-Johnson announced a new initiative on Wednesday to send employment services teams into various communities in Wilmington using a specially-equipped bus dubbed the Mobile One-Stop (MOS) unit.

Dispatching the 40-foot Department of Labor office on wheels also will increase awareness about the agency’s services for job seekers and employers – bringing these valuable resources to Delawareans in their communities. The bus is equipped with 10 computer workstations, a monitor to display presentations, wireless internet access, and a printer. On board, Delaware Department of Labor employees are ready to assist clients with job searches, resume building, and work training enrollment.

Labor employees on board also can answer questions about the many services offered by the agency.

“We are working hard to make sure that Delaware’s economy works for all Delawareans. Often, that means connecting Delawareans with jobs resources that will help them find good-paying work,” said Governor Carney. “Through this mobile jobs unit, the Department of Labor is getting out into the communities we serve, and meeting Delawareans where they live. This initiative also is one of many examples of how we are working across agencies, with the City of Wilmington, to improve our economy and quality of life for residents in our largest city. Thank you to Mayor Purzycki and Secretary Gilliam-Johnson for their leadership.”

The mobile jobs unit will be dispatched in the City of Wilmington through October to assist Wilmington residents in their job searches. There are currently 2,560 unemployed Wilmington residents actively seeking work. And though 11.6% is Wilmington’s contribution to the county’s labor force of 15,040, the city represents 16.6% of the unemployed.

“This is serious and we have to do something about it,” said Dr. Gilliam-Johnson, Secretary of the Delaware Department of Labor. “Many of the problems Wilmington residents face today can be linked to unemployment, and in order to get to a solution, we have to make meaningful connections with those seeking work, erase this inherent sense of hopelessness that exists, and present them with real and viable opportunities.”

This year, the bus has been deployed at a community block party in South Bridge, is scheduled to make weekly visits to Wilmington’s Safe Haven Community Centers and, until the end of October. will deploy regularly at the Rodney Square Downtown Visions Farmer’s Market on Wednesday afternoons.

“We want to educate Wilmington residents about employment services that are available through the State Labor Department, and to help job seekers more easily access those services,” said Mayor Purzycki. “Given that a lack of transportation can be a huge obstacle for someone who is unemployed, we need to make it easier for residents by bringing those services to the people who need them the most – meeting people where they are and where they live.”

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Find the Mobile One-Stop bus:

Latin American Community Center
Wednesday, September 6 from 3:00 PM – 6:00 PM
Thursday, September 7 from 3:00 pm – 6:00 pm
403 N Van Buren St, Wilmington, DE 19805

Westside Family Health Center & New Destiny Church
Friday, September 8, 2017 at 9:00 AM – 12:00 PM.
908 16th St B, Wilmington, DE 19802

West End Neighborhood Home
Tuesday, September 19, at 10:00 AM – 1:00 PM
Wednesday, September 20, at 10:00 AM – 1:00 PM
710 North Lincoln Street, Wilmington, DE 19805

Westside Family Health Center & New Destiny Church
Thursday, September 21, 2017 at 3:00 PM – 5:30 PM
908 16th St B, Wilmington, DE 19802

Hilltop Lutheran Center
Wednesday, September 27, 2017 at 2:30 PM – 5:30 PM
Thursday, September 28, 2017 at 2:30 PM – 5:30 PM
1018 W 6th St, Wilmington, DE 19805

Fraim Boys and Girls Club
Friday, September 22, 2017 at 5:00 PM – 7:00 PM
Saturday, September 30, 2017 at 1:00 PM – 6:00 PM
669 S. Union St. Wilmington, DE

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Related news:
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