State Senate Subcommittee Approves Healthcare Budget

Posted on April 26, 2019

Michigan capitol buildingThe Senate Appropriations Subcommittee on Community Health/Human Services reported its fiscal year (FY) 2020 budget proposal April 25. While there is still work to do before the budgets are finalized, the MHA has been pleased with the budget proposal to date.

The most important takeaway for hospitals relates to hospital-funded provider assessments. In line with Gov. Gretchen Whitmer’s executive recommendation, the Senate subcommittee proposal maintains funding for the MHA Board-supported multiyear budget agreement negotiated a few years ago. 

The Senate subcommittee budget proposal also puts $6 million more in the Rural Access Pool and Obstetrics Stabilization Fund than was proposed in the executive recommendation, for a total FY 2020 appropriation of $28.9 million. 

Several other notable provisions are included within the proposal.

  • A line item in the budget proposal is reserved to recognize the need for additional funding for Michigan’s 37 critical access hospitals.
  • The Healthy Michigan Plan is fully funded for the increased state match requirements.
  • Medicaid reimbursement rates are protected in the Senate subcommittee version of the budget.
  • $10 million is included to help individuals subject to Medicaid work requirements.
  • A behavioral health workgroup would be established to determine an adequate reimbursement methodology for Medicaid inpatient psychiatric hospital care, including temporary funding supports for emergency department patients being “boarded” while awaiting transfer to inpatient psychiatric care.

The Senate Appropriations Committee is expected to consider the subcommittee’s recommendation during the week of April 29. The House Appropriations Subcommittee on Health and Human Services is likely to report its recommendation for the FY 2020 budget in May. 

The MHA will keep members apprised as the Legislature continues its work on the FY 2020 budget.  Members with questions should contact Adam Carlson at the MHA. 


  • State Senate Subcommittee Approves Healthcare Budget

Tags: behavioral health, budget, Healthy Michigan Plan, advocacy, critical access hospitals, small and rural hospitals

Posted in: Issues in Healthcare, Top Issues - Healthcare

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