September 25, 2025 |Healey-Driscoll Administration, Health & Wellness, LCTV News, Lynn Community Health Center, News, State of MA

Legislature Approves Support for Fiscally-Strained Health Care Institutions

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From State Senator Brendan Crighton’s office:

Bill Directs $234 Million in Aid to Hospitals and Community Health Centers Around Massachusetts, Including Lynn Community Health Center

Thursday, the Massachusetts Legislature 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.

“Our community health centers and hospital systems provide essential care and we must ensure they have the financial support to continue to do this vital work,” said Senator Brendan Crighton. “As costs continue to rise and other funding mechanisms face uncertain futures, the Massachusetts Legislature is committed to protecting the health and safety of our residents through the passage of this spending bill.”

“This supplemental budget represents a vital step toward ensuring that Massachusetts’ most vulnerable residents continue to receive the care they need, even in the face of federal funding cuts and economic challenges,” said State Representative Dan Cahill. “By targeting critical support to our hospitals and community health centers, we are addressing a widening funding gap and protecting the integrity of the Health Safety Net program. This funding ensures that resources are being directed to the places and populations that need them most, reinforcing our commitment to health equity and the well-being of all Massachusetts residents.”

“We should be expanding access, not cutting it back,” said State Representative Sean Reid. “Health care is one of the clearest examples of a public good — we all rely on it at some point in our lives. I’m proud that the Legislature is working to make sure patients can continue to get the services they need.”

“Hospitals and community health centers are the backbone of care for our most vulnerable neighbors,” said State Representative Jenny Armini. “I’m especially glad that this bill directs nearly $8 million to North Shore Medical Center, ensuring it can continue serving our community despite federal setbacks and rising costs.”

“This critical funding underscores the Legislature’s recognition that community health centers are the front line of care,” said Brenda Rodriguez, Chief Executive Officer of Lynn Community Health Center.

“At a time when rising costs and federal funding shortfalls threaten access, this investment provides stability that allows us to keep our doors open to those who need us most. It’s a powerful affirmation of Massachusetts’ commitment to health equity and the belief that every resident deserves high-quality, affordable care close to home.”

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, sending the legislation to the Governor who signed it on Monday.