Legislature Completes Work on State Healthcare Budget

Posted on June 08, 2018

Michigan capitol buildingThe Legislature took one step closer to finalizing the state healthcare budget during a Joint House and Senate conference committee held June 7 to approve the conference report on Senate Bill (SB) 856, the fiscal year 2018-2019 budget for the Michigan Department of Health and Human Services (DHHS). As in previous years, the DHHS conference report will be rolled into a larger omnibus budget bill with a series of other department budgets. The omnibus bill is expected to be approved by both the House and Senate the week of June 11 before being sent to the governor’s desk for final approval.

As has been the case with previous years’ budgets, the MHA’s early efforts with key legislators, state officials and the governor’s office on MHA Board-identified priorities prior to the release of the executive budget have yielded an outcome that, overall, is positive for Michigan hospitals and the patients they serve. The final budget bill maintains state support for three MHA priorities, including a $10 million appropriation split between small and rural hospitals in Michigan ($6 million) and hospitals delivering obstetrical services in underserved areas of the state ($4 million). The final budget also maintains state general funding for graduate medical education at $57 million. Medicaid reimbursement rates remain the same and preserve the upward adjustment for primary care physician services to the midpoint between Medicaid and Medicare rates. In addition, the state’s obligation for the Healthy Michigan Plan is fully funded.

Throughout the state budget cycle, which begins each year in late January or early February and typically wraps up in June, the MHA vigilantly monitors the progress of the budget bills as it advocates on behalf of Michigan hospitals and the patients they serve. The MHA appreciates the efforts of legislators, state officials and Gov. Rick Snyder in crafting a budget that will help support Michigan’s healthcare community and the patients and families it serves. MHA members are encouraged to thank their elected officials for their work on this year’s DHHS budget. Members with questions should contact Chris Mitchell at the MHA.


  • Legislature Completes Work on State Healthcare Budget

Tags: GME, budget, small and rural, 2019 State Healthcare Budget, obstetrical stabilization fund

Posted in: Issues in Healthcare, Top Issues - Healthcare

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