The Health Policy Commission voted on Wednesday, April 14 to maintain the state’s healthcare cost growth benchmark at 3.1%, following a year in which COVID-19 destabilized the healthcare system.
The HPC’s interim report entitled
Impact of COVID-19 on the Massachusetts Healthcare System found that hospital inpatient volume dropped 32% from January to April 2020. While the system bounced back a bit after the pandemic’s peak, overall admissions were 9% lower in 2020 than in 2019. Yet the severity of cases was higher; overall, the number of ICU/CCU days increased 10% from 2019 to 2020, even as the number of admissions was lower.
Federal relief helped hospitals and health systems, but the HPC reported that some hospitals, particularly community hospitals and community high public payer hospitals, had negative margins in FY 2020 even with relief funding preventing greater losses. Health insurance companies did better. The HPC reported that Massachusetts-based commercial insurers retained a greater amount of their premium income in 2020 than in the previous two years. Across Massachusetts-based insurers, fully insured premium revenue increased by 2.3% ($10.7 to $10.9 billion) from 2019 to 2020, while medical claims expenditures decreased by 1.9% ($9.5 to $9.3 billion).
On the behavioral health (BH) front, the HPC report states that BH-related ED visits were 16% lower in January to September 2020. “However, the percentage of these visits resulting in ED boarding (waiting over 12 hours in the ED) increased, from 27% of BH-related visits over those months in 2019 to 29% in 2020,” the HPC wrote. “The percentage of BH-related ED visits resulting in ED boarding increased throughout the pandemic, reaching 31% in September. The rate of ED boarding was highest among pediatric patients.” The report also tracked the remarkable rise in telehealth throughout the pandemic and its importance in treating behavioral health patients.
MHA agreed with the HPC’s decision not to lower the benchmark. Steve Walsh, MHA president and CEO, said of the HPC’s findings, “The report also confirms what our providers are seeing on the ground: behavioral health has become an epidemic within the pandemic. Even as we look ahead to a new normal in Massachusetts, it is critical that we grasp the profound impact that the pandemic has had on our healthcare system and its patients. The HPC’s interim report underscores a need for urgency as we work to get patients back after many had delayed care, to empower telehealth to reach its full potential, and to ensure the financial stability of our providers – especially community and safety net organizations.”