Healthcare Protected in House Appropriations Subcommittee Budget Proposal

Posted on May 15, 2019

Note: This article was updated on May 22, 2019.

Michigan capitol buildingThe House Appropriations Subcommittee on Health and Human Services reported its fiscal year (FY) 2020 budget May 14. While there are still differences to reconcile with the Senate and governor, the House subcommittee budget proposal takes significant steps to improve rural access to care in Michigan.

Due to MHA advocacy efforts, the subcommittee’s proposal includes a one-time appropriation of $15 million in General Fund revenue to support Michigan’s 37 Critical Access Hospitals (CAHs), which are small hospitals with 25 beds or fewer that provide vital access to emergent care in the state’s rural areas. CAHs are federally limited to 96 hours of inpatient care, meaning they primarily provide outpatient services that are reimbursed at lower levels than inpatient services. With federal matching funds, this $15 million appropriation would provide $41.7 million that would be used to bring parity to payment for services provided to Medicaid beneficiaries in CAHs.

The House subcommittee also retained current year funding for the Rural Hospital Obstetrical Stabilization Pool, restoring $3 million that was cut in the governor’s executive recommendation. The MHA applauds the committee’s efforts to support Michigan’s rural hospitals, which play a crucial role in emergency situations when every second counts.

Several other notable provisions are included in the proposal.

  • The House subcommittee concurs with the Senate and governor on continuing the MHA Board-supported multiyear budget agreement.
  • The Healthy Michigan Plan would be fully funded for the increased state match requirements.
  • Medicaid reimbursement rates would be protected in the House subcommittee version of the budget.
  • A behavioral health workgroup would be established to determine an adequate reimbursement methodology for Medicaid inpatient psychiatric hospital care.

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. 


  • Healthcare Protected in House Appropriations Subcommittee Budget Proposal

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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