Senate passes $234 million FY2025 supplemental to shore up hospitals, community health centers

The Senate voted to pass H.4530, an FY2025 supplemental appropriation that sponsors said provides $234,000,000 in gross funding to stabilize the Health Safety Net and deliver targeted payments to acute care hospitals and community health centers.

Senator Roberts (chair, Committee on Ways and Means) told the chamber the agreement with the House ‘‘provides an infusion of $234,000,000 to strengthen hospitals and support community health centers throughout the state as they confront rising health costs and hostile federal government.’’ He later said, ‘‘The total cost of this bill gross is $234,000,000. We expect $93,000,000 to be returned to the commonwealth in terms of what we call FFP, federal financial participation, so that the net cost, of this bill to the commonwealth of Massachusetts is $140,000,000.’’

Senators pressed sponsors for context on the Health Safety Net shortfall, citing rapid health-care inflation, underinsured or newly uninsured residents, and rising unit and pharmaceutical costs. Senator Friedman, chair of the Health Care Finance Committee, emphasized that ‘‘the hospitals have spent this money. The hospitals have given this care’’ and described emergency-room demand and coverage gaps as ongoing drivers of the shortfall. Several senators urged continued work on cost containment, reimbursement rates, and other structural issues that they said are necessary to prevent future gaps.

Senator Roberts and other supporters argued the funds are time sensitive because many hospitals face September 30 fiscal-year deadlines and near-default bond covenant risks. Roberts said the FY2025 closeout returned approximately $2.1 billion above benchmark—largely from capital gains and the millionaire’s surtax—allowing a timely supplemental targeted at providers in urgent need.

The Senate ordered the bill to be engrossed. The clerk announced 39 members voted in the affirmative and none in the negative; the measure passed to be engrossed and will be laid before the governor for approval.

Supporters said the appropriation aims to stabilize cash flow for essential providers while the Legislature addresses longer-term cost and reimbursement challenges.