Legislature Approves Support for Fiscally-Strained Health Care Institutions
/(BOSTON – 9/22/2025) The Massachusetts Legislature last week enacted a supplemental budget bill that prioritizes care for the state’s most vulnerable populations by strategically targeting support to fiscally-strained hospitals and community health centers.
The legislation, H.4530, addresses a widening funding gap in the Health Safety Net program, which pays acute care hospitals and community health centers for necessary medical care for low-income, uninsured, and underinsured Massachusetts residents. Reckless federal policies and funding shortfalls have exacerbated the fiscal strain on these vital institutions that serve people most in need.
This legislative response provides critical relief in the face of an unfriendly federal government and economic headwinds, distributing aid based on criteria that directs funding to vulnerable populations most in need of assistance.
“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 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, and for sending it to the Governor’s desk for her signature.”
“Massachusetts has a healthcare ecosystem that is the envy of other states, and that doesn’t happen by accident. Supporting every resident is part of what it means to be a leader in healthcare access,” said Senate President Karen E. Spilka (D-Ashland). “This funding will help our hospitals and community health centers provide high-quality care in every region, and provide critical services to our veterans, seniors and municipalities. I’m grateful to Chair Rodrigues for his leadership, Senator Friedman for her unrivaled expertise, my Senate colleagues for their work, and our partners in the House for their support.”
“This supplemental budget focuses on investing in the health of the Commonwealth’s residents at a time when it is needed more than ever,” said Senator John F. Keenan (D-Quincy). “Given uncertainty at the federal level, it is critically important that the Legislature provide much needed support to our community health centers and local hospitals that serve our most vulnerable populations.”
“We took decisive action last week to fully support our hospitals and community health centers given the cuts being made on the federal level,” said Representative Tackey Chan (D-Quincy). “This appropriation gives Massachusetts an opportunity to maximize federal matching dollars before the end of the federal fiscal year.”
“This funding strengthens the safety net for our hospitals and community health centers so they can continue delivering high-quality care to our most vulnerable populations,” said Representative Bruce J. Ayers (D-Quincy). “By directing resources where the need and potential impact is greatest, this budget measure ensures taxpayer dollars are strategically invested to benefit communities across the Commonwealth.”
Strengthening Massachusetts Hospital Systems
The funding agreement makes $199 million available for eligible high public payer acute care hospitals across the Commonwealth through an approach that maximizes federal financial reimbursements, stabilizes the Health Safety Net Trust Fund, and makes targeted payments to hospitals to maximize the impact of taxpayer dollars.
Provides $122 million in targeted relief payments to certain acute care hospitals utilizing eligibility criteria designed to maximize the impact of taxpayers’ dollars for those hospitals and communities which need it most. The eligibility criteria include:
Each hospital’s patient mix, prioritizing those which serve the greatest share of the state’s low-income population.
Each hospital’s affordability, prioritizing those which provide services at the most affordable prices.
Each hospital’s financial standing, prioritizing those which have the most severe fiscal strain.
Transfers $77 million into the Health Safety Net Trust Fund to stabilize the program for hospitals providing services to the greatest share of the Commonwealth’s vulnerable populations.
Supporting Massachusetts Community Health Centers
Community health centers continue to support the Commonwealth’s greatest share of vulnerable populations while facing federal funding delays, Medicaid cuts, and rising pharmaceutical and other medical costs.
The agreement provides $35 million in financial relief to community health centers, including $2.5 million for the Massachusetts League of Community Health Centers to facilitate regional savings initiatives, including shared service options.
Both chambers of the Legislature voted to enact the supplemental budget on Thursday, September 18th, sending the legislation to the Governor for her signature.