Issues in Healthcare - MHA | Michigan Health & Hospital Association

Michigan Rural Health Transformation Program Application Diminishes Potential Impact

November 14, 2025 Issues in Healthcare, Top Issues - Healthcare, News Releases

The following statement can be attributed to Brian Peters, CEO of the Michigan Health & Hospital Association.

We are disappointed the Michigan Rural Health Transformation Program application submitted by the Michigan Department of Health and Human Services does not include explicit support for Michigan’s 73 rural hospitals.

The application lists four initiatives, none of which include recommendations from Michigan’s rural hospital leaders, who know rural healthcare needs best. Michigan hospitals are set to lose more than $6 billion over the next 10 years due to the federal H.R. 1 Reconciliation Bill. It’s unfortunate Michigan’s application ignored this impact and the intent of Congress to assist rural hospitals most impacted by these federal changes through this program.

This application provided an opportunity to maximize the healthcare impact for rural communities by providing the resources needed by rural Michigan’s leading healthcare providers. While the four initiatives are well intended, the application as submitted fails to maintain access to care in the most meaningful way.

Bridge: Five reasons health insurance rates are rising so much in Michigan

November 7, 2025 Issues in Healthcare, MHA In The News

Bridge published a story Nov. 5 sharing five reasons why health insurance rates are rising at increasing rates in the state, which included workforce challenges, expiring enhanced premium tax credits, inflation and drug prices.

MHA CEO Brian Peters is quoted in the story, discussing the benefits of hospital mergers and acquisitions when it comes to maintaining access to care and affording high fixed hospital costs. He also highlighted the MHA’s federal advocacy efforts to extend the enhanced premium tax credits.

“The cost of electronic medical record infrastructure is extraordinary today. The cost of medical liability insurance coverage, the cost of physician practice subsidization,” said Peters. “You’re better able to bear that underlying cost if you’re part of a larger system that has more capital resources.”

Members with any questions regarding media requests should contact John Karasinski at the MHA.

Bipartisan State Budget Protects Healthcare

October 3, 2025 Issues in Healthcare, Top Issues - Healthcare, News Releases

The following statement can be attributed to Brian Peters, CEO of the Michigan Health & Hospital Association.

Michigan’s elected officials demonstrated today a strong, bipartisan commitment to protecting healthcare funding in the state budget. We thank all of those who worked together when it mattered most, especially Gov. Whitmer, Senate Majority Leader Brinks and Speaker of the House Hall for their leadership in agreeing to a budget that will continue to advance the health of individuals and communities throughout the state. Hospitals, healthcare workers and patients have secure state funding for another year, maintaining access to care and protecting important service lines.

Michigan Hospital Collaboratives Launch to Improve Community Health

September 9, 2025September 9, 2025 Member News, Issues in Healthcare, Top Issues - Healthcare, News Releases

More than 50 Michigan hospitals are coming together to improve outcomes in maternal health, behavioral health and chronic disease across the state through new community benefit collaboratives launched by the Michigan Health & Hospital Association (MHA). The goal is to leverage community impact programming to maximize statewide improvements in these three areas.

The MHA will lead participating hospitals in implementing multi-year, scalable projects focused on enhancing group prenatal care, improving perinatal mood disorder screening and support, preventing postpartum depression and expanding food access and nutrition education. The collaborative topics were selected based on a review of all Community Health Needs Assessments completed by Michigan hospitals. Each collaborative is modeled after existing programs at Michigan hospitals and healthcare organizations designed to address healthcare barriers and improve health outcomes.

“This work reflects Michigan hospitals’ commitment to investing in their communities far beyond their four walls to improve population health,” said MHA CEO Brian Peters. “These collaboratives are designed to scale local success into making a statewide impact that advances the health and well-being of Michiganders where they live, work and grow.”

Each collaborative has various components that can be tailored to meet the unique needs of a hospital, depending on size, available resources and patient populations. The implementation of the collaboratives is supported by funding from the Michigan Health Endowment Fund. Public Policy Associates will facilitate program evaluations.

The list of participating hospitals for each collaborative is available below.

Behavioral Health Collaborative

Henry Ford Health

MyMichigan Medical Center Alma

MyMichigan Medical Center Clare

MyMichigan Medical Center Gladwin

MyMichigan Medical Center Midland

MyMichigan Medical Center Mt. Pleasant

MyMichigan Medical Center Saginaw

MyMichigan Medical Center Sault

MyMichigan Medical Center Standish

MyMichigan Medical Center Tawas

MyMichigan Medical Center West Branch

ProMedica Monroe Regional Hospital

ProMedica Charles and Virginia Hickman Hospital

Trinity Health Ann Arbor

University of Michigan Health-Sparrow Lansing

University of Michigan Health-West

Chronic Disease Collaborative

Aspirus Iron River Hospital & Clinics

Aspirus Keweenaw Hospital & Clinics

Aspire Rural Health System Deckerville Community Hospital

Aspire Rural Health System Hills & Dales Healthcare

Aspire Rural Health System

Beacon Kalamazoo (formerly Borgess Hospital)

Bronson Battle Creek Hospital

Henry Ford Health

Kalkaska Memorial Health Center

Munson Medical Center

MyMichigan Medical Center Alma

MyMichigan Medical Center Clare

MyMichigan Medical Center Gladwin

MyMichigan Medical Center Midland

MyMichigan Medical Center Mt. Pleasant

MyMichigan Medical Center Saginaw

MyMichigan Medical Center Sault

MyMichigan Medical Center Standish

MyMichigan Medical Center Tawas

MyMichigan Medical Center West Branch

Scheurer Health

Schoolcraft Memorial Hospital

Maternal Health Collaborative

Bronson Methodist Hospital

Corewell Health Lakeland Hospitals – St. Joseph Hospital

Henry Ford Health

MyMichigan Medical Center Alma

MyMichigan Medical Center Clare

MyMichigan Medical Center Gladwin

MyMichigan Medical Center Midland

MyMichigan Medical Center Mt. Pleasant

MyMichigan Medical Center Saginaw

MyMichigan Medical Center Sault

MyMichigan Medical Center Standish

MyMichigan Medical Center Tawas

MyMichigan Medical Center West Branch

Three Rivers Health Hospital (Beacon Health System)

To learn more about community benefit efforts across the state, visit the MHA Community Benefit webpage.

Based in Greater Lansing, the MHA is the statewide leader representing all community hospitals in Michigan. Established in 1919, the MHA represents the interests of its member hospitals and health systems in both the legislative and regulatory arenas on key issues and supports their efforts to provide quality, cost-effective and accessible care. The MHA’s mission is to advance the health of individuals and communities.

Peters Reaffirms Commitment to Protecting Healthcare Access Throughout Michigan

September 3, 2025September 3, 2025 News Releases, Issues in Healthcare, Top Issues - Healthcare

The following statement can be attributed to Brian Peters, CEO of the Michigan Health & Hospital Association.

The Speaker is wasting Michiganders’ time and resources doubling down on defending these disastrous budget cuts and resorting to personal attacks. Attacking me does not change the real cuts his budget threatens to make against patients, healthcare workers and hospitals. I’m happy to be the target of his outrage and criticism if that distracts him from cutting funding for those who report to work every day to save lives.

The fact is the Rural Health Transformation funding is a lottery ticket that pales in comparison to the more than $8.5 billion hospitals would lose from state and federal cuts. State lawmakers have no influence on when or how much federal rural money is distributed. At best, it would only make up for 3% of these cuts, if it comes to fruition.

We will not be bullied away from defending our patients. We remain steadfast in our commitment to protecting healthcare access throughout Michigan.

House Budget Endangers 20,000 Hospital Jobs and $4.9 Billion Economic Loss

September 3, 2025 Top Issues - Healthcare, News Releases, Issues in Healthcare

An estimated 20,000 hospital jobs could be lost in Michigan and lead to a $4.9 billion loss to the state’s economy if the House version of the state budget ultimately is signed into law, according to new estimates from the Michigan Health & Hospital Association (MHA).

The estimates consider the more than $2.5 billion in potential hospital funding cuts included in House Bill 4706. The impact on jobs would be particularly profound, as on average, 60% of a hospital’s budget is due to labor. Such a cut could have an additional estimated induced and indirect economic loss of $2.4 billion on the economy. More than one million jobs are directly, indirectly or induced by healthcare in the state.

“Healthcare is the largest private-sector employer in the state, with hospitals employing the most direct jobs within the sector with approximately 222,000 employees,” said MHA CEO Brian Peters. “Our calculations show the House version of the state budget could ultimately lead to a 9% reduction in the direct hospital workforce. Hospitals are one of the largest employers in each of their communities, meaning job losses to this magnitude would be felt in every corner of Michigan.”

Provisions of the budget bill that would lead to losses include:

New language that places $2.5 billion of hospital provider-tax funded payments in contingency line, requiring unnecessary administrative and legislative actions that could jeopardize timely hospital payments.
Elimination of at least $100 million of funding from the Specialty Network Access Fee (SNAF), which provides reimbursement to physicians caring for patients with Medicaid coverage.
Elimination of $10 million to support the Maternal Levels of Care verification and MI-AIM safety program for birthing hospitals.

Hospitals depend on stable funding, predictable reimbursements and policies that reflect the real costs of care. This is necessary from all healthcare payors, including the state. Eroding established funding levels and risking both the certainty and the timeliness of payments prevents hospitals from making needed investments in the hospital workforce, patient care and capital improvements.

Media Recap: Medicaid and Healthcare Costs

August 22, 2025August 22, 2025 Member News, Issues in Healthcare, MHA In The News

The MHA received media coverage during the week of Aug. 18 that continued to focus on the impact the One Big Beautiful Bill Act (OBBBA) will have on Medicaid as well as comments related to the impact hospital consolidations have on healthcare access.

Gongwer published a story Aug. 20 on the impact hospital consolidations have on healthcare costs and access to care for employees. MHA CEO Brian Peters was quoted in the article disputing the claim that hospitals are profiteers.

“Bashing community hospitals and the 220,000 hospital workers who show up every day of the year to care for Michigan patients is misguided and inflammatory,” said Peters. “Hospitals are focused on providing safe, high-quality, affordable care in every community they serve.”

NPR also published a story following an interview with Peters regarding the impact the OBBBA and new work requirements will have on healthcare in Michigan.

“The state of Michigan Department of Health and Human Services has estimated that as many as 700,000 Michiganders could lose coverage because of the reconciliation bill,” said Peters.

The new work requirements will necessitate that hundreds of thousands of enrollees document their eligibility every six months. Peters noted in the interview that there’s no evidence of widespread waste and abuse in the state’s Medicaid program.

“When you look at the Medicaid population here in the state of Michigan, we know that almost all of those folks are working and working full time,” said Peters.

Members with any questions regarding media requests should contact John Karasinski at the MHA.

New PwC Report Warns of Rising Hospital Costs and Mounting Financial Pressure on U.S. Healthcare System

July 24, 2025 News Releases, Issues in Healthcare, Top Issues - Healthcare

The Michigan Health & Hospital Association (MHA) is drawing attention to a new national report from PricewaterhouseCoopers (PwC) that outlines the severe financial challenges facing hospitals across the country that could soon jeopardize patient care if urgent policy action is not taken.

The report, Inflator: Hospital Costs, from Wages to Hospital Gowns, highlights the mounting pressures on hospitals due to surging costs, workforce shortages and skyrocketing demand for behavioral health services, all while proposed tax cuts and Medicaid funding reductions threaten to widen the gap between costs and revenue.

“This report confirms what hospitals in Michigan and across the country are living every day: skyrocketing costs, growing demand and shrinking margins,” said MHA CEO Brian Peters. “We cannot afford policies that slash Medicaid funding or shift more financial burden to hospitals and patients. Without sustainable support, hospitals – especially those in rural and underserved areas – face real threats of closure.”

Key findings from the PwC report include:

Hospital margins have plummeted, dropping from an average of 7% in 2019 to just 2.1% in 2024, with additional declines reported in early 2025.
Drug spending surged by $50 billion (11.4%) in 2024, more than double the increase seen in 2023, largely driven by high-cost therapeutics in chronic disease areas like oncology, obesity and diabetes.
Behavioral health claims soared, with inpatient claims increasing by 80% and outpatient claims by 40% over a two-year span, reflecting the intensifying behavioral health crisis.
Tariffs and supply chain challenges continue to drive up the cost of everyday medical supplies, compounding inflationary pressures.
Medicaid cuts and federal tax policies could force the closure of service lines at facilities that rely heavily on government payers, impacting access to care for all residents.

The report also outlines how hospitals are working to offset financial pressures by investing in revenue cycle improvements and value-based payment models. Still, the report emphasizes that system-wide stability will require collaboration between payers, providers, policymakers and employers, especially as rural hospitals face ongoing threats of closure.

The MHA is supporting Michigan hospitals facing these mounting challenges through the following actions:

Advocating to preserve and strengthen the federal 340B program, which enables hospitals to purchase outpatient medications at discounted rates, freeing up resources to serve low-income and uninsured patients.
Working with state policymakers to expand access to mental health and substance use treatment, reduce emergency department (ED) strain and support hospitals’ efforts to meet growing behavioral health needs. This includes Senate Bill 806, which expands the three-hour assessment responsibility by allowing clinically-qualified staff to conduct pre-admission screenings for behavioral health patients seeking care in the ED.
Leading efforts to expand the healthcare workforce pipeline through partnerships with post-secondary educators, awareness campaigns and recruitment and retention initiatives to help hospitals manage staffing costs while maintaining high-quality care.
Working to add Michigan to the Nurse Licensure Compact, allowing nurses to practice across state lines without the burden of obtaining additional licenses.
Advocating against Medicaid cuts and pushing for reimbursement rates that reflect the true cost of care, especially for safety net and rural hospitals that disproportionately rely on public payers.

The full report is available on the PwC website.

Headline Roundup: Continued OBBBA Coverage

July 18, 2025July 18, 2025 Top Issues - Healthcare, Member News, Issues in Healthcare, MHA In The News

The MHA continued to receive media coverage during the week of July 14 about the impacts of the federal budget reconciliation bill, officially referred to as the One Big Beautiful Big Act (OBBBA).

Coverage includes references to the association’s financial estimates, as well as quotes from MHA CEO Brian Peters and MHA Executive Vice President Laura Appel.

Members with any questions regarding media requests should contact John Karasinski at the MHA.

Headline Roundup: Medicaid Cuts

July 11, 2025July 18, 2025 Member News, Issues in Healthcare, MHA In The News, Top Issues - Healthcare

The MHA received media coverage during the weeks of June 30 and July 7 on Medicaid cuts included in the federal budget reconciliation bill.

MHA CEO Brian Peters and MHA Executive Vice President Laura Appel participated in a series of print, radio and TV broadcast interviews, outlined below. Additional coverage resulted from a virtual press conference hosted by the Protect MI Care coalition where Peters spoke to the impact Medicaid cuts will have on Michigan hospitals, patients and communities.