H.R. 5202: Better Availability of Birth Centers Improves Outcomes and Expands Savings Act

The Better Availability of Birth Centers Improves Outcomes and Expands Savings Act, also referred to as the BABIES Act, aims to improve maternity care in the United States by expanding access to birth centers, particularly in underserved areas. Here are the key provisions of the bill:

Grants to Birth Centers

- The bill authorizes the Secretary of Health and Human Services to award grants to eligible birth centers. These centers must be accredited or planning to seek accreditation.- Grants will be available for various purposes, including: - Renovation or expansion of facilities. - Purchasing or updating equipment. - Accreditation and licensure activities.- Each grant can range from $300,000 to $500,000, and a total of up to 15 birth centers can receive funding each year from 2026 to 2030.

Medicaid Demonstration Program

- The bill establishes a demonstration program to evaluate and develop new payment models for freestanding birth centers. This is intended to improve access to high-quality maternity care for women with low-risk pregnancies who qualify for Medicaid.- The Secretary will publish criteria for states to certify freestanding birth centers as part of this program.- States can apply to participate in the demonstration program, which must include areas with low access to maternity care (referred to as maternity care deserts).

Funding

- The bill allocates $3 million for fiscal year 2027 and $6 million for each following year until 2031 to support the grant and demonstration program efforts. These funds can be used until fully expended.

State Participation and Reporting

- States selected for the demonstration program will need to conduct it for four years and submit annual reports to the Secretary. These reports will assess clinical outcomes and the financial impact of the program.- The Secretary will provide guidance on setting up a prospective payment system for services provided during the demonstration.

Definitions

- The bill defines "freestanding birth center services" and specifies what constitutes a "low-risk pregnancy."

Relevant Companies

• MDU Resources Group Inc. (MDU) - May benefit from expanded birth center services due to potential partnerships or contracts related to construction, renovation, or facility management in healthcare.
• Tenet Healthcare Corporation (THC) - As a major healthcare provider, it may see changes in the maternity care landscape, influencing business strategies and service offerings in response to increased birth center accessibility.