New Report Reveals Positive Impact of Michigan Hospitals on State’s Communities, Economy
Posted on September 05, 2019
Michigan hospitals collectively invested nearly $2.9 billion in total community benefits according to a report released Sept. 5 by the Michigan Health & Hospital Association (MHA).
Based on fiscal year (FY) 2017 data, which is the most recent available, the 2019 MHA Community Benefit Report, Healthy Futures, Healthy Communities, provides a detailed overview of how Michigan’s hospitals are working in local communities throughout the state to help people of all ages get and stay healthy, both in and out of the traditional hospital setting. These efforts include:
- Continuing to provide patients and families with high-quality, cost-effective care. A survey from the American Hospital Association based on FY 2017 data shows that the cost of an inpatient admission in a Michigan hospital is 9.8% lower than the national average for a comparable admission.
- Reaching millions of Michigan residents through voluntary community benefit services, programs and activities that range from health education and guidance efforts to community outreach, workforce development and retention, and clinical research. In all, Michigan hospitals invested more than $706 million in the effort, which is designed to enhance the quality of life for residents throughout the state.
- Covering the costs of unpaid patient care, which totaled $2.2 billion. Medicaid and Medicare Allowable payment shortfalls accounted for the largest portion of the total, at $1.5 billion combined, which represents shortfalls in both programs to cover the full cost of care. As baby boomers age and retire, the Medicare Allowable payment shortfall is expected to continue rising. The unpaid patient care also includes $131 million in financial assistance at cost and nearly $419 million for healthcare services not paid in full (commonly referred to as bad debt at cost). Hospitals once again saw a drop in financial assistance at cost thanks to the success of programs like the Healthy Michigan Plan, which has provided access to affordable health insurance for more than 649,000 as of August 2019.
The report also provides a high-level overview of how hospitals help strengthen the state economy. Overall, Michigan hospitals provide nearly 232,000 direct jobs, which accounts for 38% of all directly employed healthcare workers in the state. Overall, there are more than 602,000 healthcare jobs in Michigan, making healthcare one of the state’s largest private-sector employers.
“Michigan hospitals continue to invest significantly in the health, wellness and economic success of their local communities,” said MHA CEO Brian Peters. “Throughout our state, hospitals are offering new and innovative ways to provide preventative care and treatment outside the acute care setting that address health equity barriers. Our member hospitals understand better than ever how social determinants of health, such as food insecurity or lack of readily available transportation, can impact the health and wellness of individuals. These efforts are complemented by programs like the Healthy Michigan Plan, which continues to improve access to care for thousands of low-income Michigan residents. As the MHA celebrates its 100-year anniversary in 2019, we continue to work closely with key stakeholders to further advance the health of individuals and communities across Michigan.”
A full copy of the 2019 Community Benefit Report, Healthy Futures, Healthy Communities, is available online, which also features an itemized listing of community benefit activities and stories exhibiting specific community benefit programs from MHA member hospitals.
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