An Act to ensure the efficient operation of hospitals

HD 2851 requires the state commission to create a hospital efficiency index measuring performance across key areas like avoidable care (e.g., readmissions, infections), cost comparisons to payments, and administrative waste. The index must be developed with public input via hearings, published annually, and evaluated every two years. It mandates recommendations for payers (including Medicaid and insurers) to adjust payments based on efficiency scores, require correction plans for underperforming hospitals, and prohibit payment for low-value services. This directly affects hospitals, insurers, and Medicaid by establishing new metrics for hospital performance and payment adjustments.