The Vermont Senate has given unanimous approval to a bill that requires hospitals to send letters to current patients when acquiring new doctors’ offices.
The Senate approved S.245 in a voice vote Tuesday morning. The bill is expected to get final approval this week before moving over to the House. The requirement would go into effect July 1.
The bill will require hospitals to send letters to patients within 30 days of buying up a practice. The letters must advise the patients to contact their insurance companies to find out if the new ownership will increase the patient’s out-of-pocket cost.
S.245 also directs the Green Mountain Care Board, which regulates hospital budgets and commercial insurance rates, to require hospitals to report acquisitions of practices more often throughout the year.
Sen. Claire Ayer, D-Addison, the chair of the Health and Welfare Committee, called the bill “a reasonable way to address a reasonable need” that has support from hospitals and independent practices alike.
“The problem that exists is that when an independent physician practice is acquired, higher fees are charged (by the hospital-owned practice) for the same service,” Ayer told the Senate. “Patients ought to be notified if they will have to pay more for the same service.”
