Volume IV, Number 1
January 2006
Printer-Friendly Version

Published by the Michigan Health & Hospital Association

A monthly report of health care issues for Michigan news media.

Contact Sherry Mirasola, (517) 323-3443

Web site: www.mha.org

In this issue:

New Study: Unlike Rest of America, Michigan’s Health Not Improving
Michigan Hospital Costs Below National Average
Anti-Consumer Health, Auto Insurance Bills Stall in Lansing
Nursing Schools Turn Away More Than 32,000 Applicants
Health-E View: What’s in a Headline?

New Study: American’s Health Continues to Improve —
But Not in Michigan

A new study finds that health status is improving in most of the nation, but not in Michigan and a handful of other states.

The health of the American people has improved 18.4 percent since 1990, based on 18 measures analyzed in a new report by the United Health Foundation, the American Public Health Association (APHA) and the Partnership for Prevention. The 16th annual report was released at the APHA’s annual meeting in Philadelphia.

Improvements nationally include a 40 percent decrease in the incidence of infectious disease, 34 percent decrease in infant mortality, 30 percent decline in smoking, and 18 percent decline in the death rate for cardiovascular disease.

Minnesota ranks as the nation’s healthiest state, while Mississippi is last. Michigan ranks 29th, unchanged from 2004. Michigan’s poor showing is largely due to the state’s high obesity rate, high rate of cardiovascular disease, high rate of smoking (though Michigan improved in this area), and high infant mortality rate. The study also notes a sharp increase in the percentage of Michigan children in poverty — 19.3 percent in 2005 compared to 14.6 percent in 2004.

Back to Top


Michigan Hospitals Keep Costs Below National Average

The hard work by hospitals to keep costs down represents
$1.2 billion less costs for
FY 2004 and represents significant savings for Michigan’s employers and other health care payers.

For the second consecutive year, Michigan hospital costs are 6.3 percent lower than the national average, according to a study recently released by the American Hospital Association (AHA).

This means Michigan citizens paid $1.2 billion less in hospital costs in fiscal year (FY) 2004 than if Michigan’s hospital costs had mirrored the national average, the AHA study found.

“This study affirms that Michigan hospitals have acted as responsible stewards of our limited financial resources. Our efficiencies directly assist Michigan employers in their continued efforts to control health care costs and contribute to a more attractive environment for new business in the state,” said Michigan Health & Hospital Association President Spencer Johnson.

The new study examined both inpatient and outpatient volumes and hospital business operations for FY 2004.

Back to Top


Bills to Gut Consumer Protections in Health and
Auto Insurance Laws Stall in Lansing

A package of bills that could stick thousands of Michigan residents, hospitals and physicians with millions of dollars in unpaid medical bills has stalled in the state legislature.

The Michigan Health & Hospital Association (MHA), the state insurance commissioner, Blue Cross Blue Shield of Michigan, the Michigan Education Special Services Association, the Michigan State Medical Society and other groups worked to stop Senate Bills (SBs) 895-898 during the final week of the legislature’s 2005 session.

Of particular concern is SB 896, which would create a new type of health insurance pool to cover Michigan school employees. The MHA objects to provisions in the bill that would exempt school employers from all requirements of Michigan’s insurance code, including reserve requirements and regulatory oversight. Those provisions would potentially place patients, hospitals and physicians at risk if the new plans become insolvent. Supporters of the bills have vowed to restart debate in early 2006.

The MHA’s advocacy efforts also successfully stopped House Bill 4742, which would provide a managed care option for auto no-fault protection benefits. Passage of the bill would result in reduced health care benefits for people injured in auto accidents and payment reductions for hospitals and physicians.

Back to Top


Nursing Schools Turn Away More Than 32,000 Applicants

Despite a worsening shortage of nurses across Michigan and the nation, nursing colleges and universities in 2005 turned away 32,617 qualified applicants due to capacity constraints, found a new study by the American Association of Colleges of Nursing (AACN).

Although enrollment in entry-level baccalaureate nursing programs increased 13 percent in 2005, the federal government projects a shortfall of 800,000 registered nurses (RNs) by the year 2020, the study said.

"Despite the successful efforts of schools nationwide to expand student capacity, our nation’s nursing schools are falling far short of meeting the current and projected demand for RNs," said AACN President Jean Bartels.

Pamela Thompson, CEO of the American Organization of Nurse Executives, said, “This data from AACN is troubling for all of us. We desperately need to increase the number of students graduating from baccalaureate programs, but the constraints on schools to accomplish this seem to be increasing. The shortage of faculty and limits to capacity could cripple our ability to graduate enough nurses to meet our future needs. We must continue to search for multiple solutions to this growing problem.”

Back to Top



What’s in a Headline?

Spencer Johnson, president Michigan Health & Hospital Association

By Spencer Johnson

Phil Power has seen a lot in his years of hanging around and observing Michigan politics. Power was elected statewide to serve on the University of Michigan Board of Regents. He was an appointee of Govs. James Blanchard, a Democrat, and John Engler, a Republican. He was also a successful employer for many years, publishing a network of 70 weekly newspapers in communities across Michigan.

Power continues to pen a weekly column that examines statewide politics and issues, pulling no punches and often landing a few blows to elected officials and proposals that he considers harebrained or just plain wrong. His Dec. 11 column was particularly tough, running under the headline, “Governor and legislature practicing economic idiocy.”

His column challenged the steady drumbeat of business tax cut proposals that continue to roll out of Lansing, regardless of mounting evidence suggesting that Michigan can no longer afford to continue disinvesting in education, health care and other vital programs and services.

By studying per capita income changes, taxes paid per capita, and taxes paid by Michigan citizens as a percentage of personal income, Power thoughtfully answered the questions: Is Michigan still a high-tax state? Has cutting taxes since 1993 boosted Michigan’s economic performance?

He concluded that Michigan today “is not a high-tax state,” and in fact, is now “slightly below the national average.” In 1993, the state’s tax burden was above the national average, he said.

He also noted that, since 1993, when the unbroken wave of tax cuts began rolling in from Lansing, “per capita personal income has dropped by 2.3 percent, while employment declined by 7.6 percent.” In fact, Power noted that states recognized for having the “lowest per capita tax burden — Tennessee, Alabama, South Dakota, Oregon and South Carolina — are all below the national average in per capita income growth since 1993.”

Finally, Power observed: “Insightful readers will realize at once that cutting taxes bleeds money from exactly these essential components for a successful economy in a globalized 21st century. Or, put another way, we could save money in the short run if we didn’t insist on clean drinking water.”

Or if we didn’t insist on affordable and accessible health care for all Michigan residents, safe roads and bridges, adequate police and fire services, and high-quality public schools and universities.

Back to Top


©2006 by the Michigan Health & Hospital Association. All rights reserved. Materials may be reproduced with credit attributed to the MHA.