One big thing:
Utah lawmakers passed significant healthcare reforms during the 2024 legislative session, including changes to Medicaid funding, prescription drug pricing, and medical malpractice – with major implications for both healthcare providers and patients across the state.
Why it matters: These changes could affect everything from rural healthcare access to prescription drug costs, while putting new financial pressures on hospitals. The decisions made during this session will shape healthcare delivery and accessibility for years to come.
The details:
On Medicaid funding:
- A new hospital assessment of $18 million was approved – significantly reduced from an initial proposal of $37 million
- The assessment allows for federal matching funds at a 2-to-1 ratio
- “This is $18 million that the state of Utah does not have to pay and that they can now use in other funding areas throughout the budget,” explains Francis Gibson
- Dave Gessel notes that hospitals “can be assessed up to 6% under federal law, and this will take us essentially up there”
Implementation timeline:
The increase won’t take effect until July 2026, giving hospitals what Gessel calls “a glide path to get there.”
On prescription drug pricing (340B program):
- The legislature passed landmark protections for the 340B drug pricing program
- The program currently provides nearly $200 million in annual savings to Utah hospitals
- Particularly crucial for rural healthcare providers
- Maintains contract pharmacy networks, ensuring better patient access
“This program saves Utah hospitals nearly $200 million a year collectively,” Gibson explains. “It’s the rural hospitals that are able to keep their doors open… you’re talking about 2 to $3 million savings a year [for rural facilities] up to $70 million for larger systems.”
By the numbers:
- Rural facilities: $2-3 million in annual savings
- Major health systems: Up to $70 million in savings
- Total statewide impact: Nearly $200 million
Looking ahead:
- Dave Gessel calls the 340B legislation “historic” and notes Utah joins just “8 or 9 states” with similar protections
- Potential legal challenges from pharmaceutical companies are expected
- However, Gessel remains confident: “virtually every other state they’ve sued in, the hospitals and providers have won”
The bottom line:
While hospitals face new financial obligations through the Medicaid assessment, the preservation and protection of the 340B program represents a major victory for healthcare providers and patients alike. The changes particularly benefit rural communities, helping ensure continued access to essential healthcare services across Utah.
