Massachusetts hospitals and health centers are getting a $234 million funding boost under a bill signed into law this week.
The supplemental budget funds moved quickly through the state’s legislature and reached Gov. Maura Healey’s desk Monday.
Officials, in statements released before and after the signing, said the relief was necessary to address an “immediate shortfall” providers faced this year due to increased utilization, rising costs and a payer mix shift toward government-funded coverage programs. They also pointed to upcoming federal funding and coverage reductions stemming from the summer’s One Big Beautiful Bill Act.
“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,” Healey said in an announcement. “I’m grateful for the Legislature for passing this essential funding.”
Of the $234 million total, $199 million will go to acute care hospitals and health systems. $122 million of that takes the form of targeted relief payments, with eligibility criteria lawmakers said prioritize hospitals with larger shares of low-income patients, hospitals under severe financial strain and hospitals that offer their services at lower prices.
Another $77 million will go to Massachusetts’ Health Safety Net Trust Fund, which reimburses hospitals for treating uninsured or underinsured patients. The fund has logged increasingly high nine-figure deficits during the past three fiscal years and is reportedly expected to exceed a $300 million deficit in fiscal 2025.
Roughly 40 Massachusetts hospitals are estimated to qualify for part of the relief allocation, reports State House News Service.
The remaining $35 million will shore up community health centers and hospital-licensed health centers across the state, with $2.5 million intended to facilitate regional savings strategies such as shared service options.
“Our local leaders have taken an extraordinary step to protect the viability of Massachusetts healthcare,” Steve Walsh, president and CEO of the Massachusetts Health & Hospital Association, said in the governor’s announcement.
“This investment will give providers the supports they need to carry forth their most fundamental mission: delivering accessible, sustainable care for the commonwealth’s seven million patients. We will continue working with local policymakers on long-term solutions to our commonwealth’s safety net challenge, but this is an immediate step that will benefit countless patients and caregivers across the state,” Walsh said.