The following statement can be attributed to Brian Peters, CEO of the Michigan Health & Hospital Association.
The fiscal year 2024 state budget approved by the Michigan Legislature renews a longstanding commitment lawmakers have made to the health and wellness of Michigan’s hospitals, health systems and communities.
We are extremely pleased to see the inclusion of new funding to support trauma centers and inpatient psychiatric services that will provide a net benefit of $92 million. Trauma centers at hospitals provide lifesaving treatment to people with the most severe injuries, ready at a moment’s notice for mass casualty events and catastrophic accidents with a vital network of EMS services. This added funding makes Michigan a national leader in recognizing the importance of access to trauma services and makes sure trauma centers can continue to be equipped with the resources needed to staff these services 24/7, year-round.
Michigan is also in the middle of a behavioral health crisis where the demand of patients needing inpatient care continues to increase. We commend the Legislature for recognizing this need and increasing rates to inpatient psychiatric facilities based on patient acuity to help hospitals afford the staffing, security and facilities necessary to accept patients with more severe illness.
In addition, the budget continues to support long-standing programs crucial to access to healthcare services throughout Michigan. These include funding for rural and critical access hospitals, obstetrical services, graduate medical education, the Healthy Michigan Plan and Michigan’s Medicaid population.
We look forward to a signed budget that provides hospitals with the needed support to continue to provide high-quality care to every patient.
Members of the Michigan Health & Hospital Association (MHA) elected new officers and appointed board members during the association’s Annual Membership Meeting June 29. Officers of the 2023-2024 MHA Board of Trustees include Shannon Striebich, chair; Julie Yaroch, DO, chair-elect; and Bill Manns, treasurer. In addition, Brian Peters was reappointed to serve an indefinite term of office as CEO of the association. The board directs the greater Lansing-based association’s statewide representation of hospitals and healthcare providers.
Striebich, ministry president and senior vice president, Operations, Trinity Health Michigan, will serve as chair during the association’s 2023-2024 program year beginning July 1. The terms of service of Yaroch, president, ProMedica Charles and Virginia Hickman Hospital, Adrian; and Manns, president and CEO, Bronson Healthcare Group, Kalamazoo, will also span the 2023-2024 program year. T. Anthony Denton, senior vice president and chief ESG officer, University of Michigan Health/Michigan Medicine, Ann Arbor, will serve as immediate past chair.
MHA CEO Brian Peters.
“On behalf of the full MHA membership, I want to thank Tony Denton for his terrific leadership of the MHA Board through a year of challenges that included the ending of the COVID-19 public health emergency, workforce shortages and more,” said MHA CEO Brian Peters. “We are grateful for Tony’s service. We are also excited to welcome Shannon Striebich as our incoming chair. There is no questioning Shannon’s commitment to advancing the health of individuals and communities throughout our state.”
Lydia Watson, MD, president and CEO, MyMichigan Health, Midland, was appointed as trustee at-large for a three-year term.
Reappointed for three-year terms on the 2023-2024 MHA Board of Trustees as trustees at-large were Denton, Manns, Gar Atchison, chief executive officer, UP Health System – Marquette, and market president, UP Health System; Mark Eastburg, PhD, president and CEO, Pine Rest Christian Mental Health Services, Grand Rapids; and Ed Ness, president and CEO, Munson Healthcare, Traverse City.
Continuing to serve their current terms of service as trustees at-large are Douglas Apple, MD, MS, FHM, chief clinical officer, Ascension Michigan, Warren, and interim president & CEO, Ascension Genesys Hospital, Grand Blanc; Beth Charlton, president and CEO, Covenant HealthCare, Saginaw; Karen Cheeseman, president and CEO, Mackinac Straits Health System, St. Ignace; Tina Freese Decker, president and CEO, Corewell Health, Grand Rapids and Southfield; Jeremiah J. Hodshire, president and CEO, Hillsdale Hospital; Gregory R. Lane, executive vice president and chief administrative officer, McLaren Health Care, Grand Blanc; Brittany Lavis, CEO, Detroit Medical Center; Hunter Nostrant, president and CEO, Helen Newberry Joy Hospital & Healthcare Center, Newberry; Kent Riddle, CEO, Mary Free Bed Rehabilitation Hospital, Grand Rapids; and Bob Riney, president and CEO, Henry Ford Health, Detroit.
Michigan has 27,000 job openings in hospitals across the state
LANSING, Mich. – Michigan hospital and education leaders joined forces June 8 to highlight the current state of Michigan’s healthcare workforce shortage and launch a campaign to expand interest in health careers in Michigan.
“Michigan’s healthcare industry is the largest private sector employer in the state. More than one million Michiganders work in healthcare, making a combined $73.7 billion in wages, salaries and benefits,” said Brian Peters, CEO of the Michigan Health & Hospital Association (MHA). “Unfortunately, we are seeing continued job shortages in hospitals and health systems, which pose a risk to healthcare service accessibility across the state.”
While many are aware of the shortage of physicians and nurses, high demand exists for non-clinical roles as well, with more than 27,000 total open positions at hospitals across the state. Within the next five years, the U.S. faces a projected shortage of more than 3.2 million lower-wage healthcare workers such as medical assistants, home health aides and nursing assistants, according to a Mercer report.
The healthcare and education industries are working to raise awareness of the current openings and career paths that exist within hospitals and healthcare systems. The goal of the new Mi Hospital Careers campaign is to ensure that students in high school and college know about those opportunities, as well as working professionals looking for a rewarding career. Without addressing the existing healthcare workforce shortage, Michigan residents risk losing access to quality, accessible healthcare services within their local community.
“Michigan’s public universities are primed and ready to help address the healthcare workforce shortage facing the state,” said Daniel J. Hurley, CEO of the Michigan Association of State Universities. “Strengthening the talent pipeline for these high-demand careers will require additional investments in higher education that improve college affordability and increase enrollment.”
Michigan hospital employees make an average of $65,000 per year – higher than the state average of $48,000. Still, hospitals across Michigan have gotten creative to offer competitive modern workplaces for employees, including increased bonuses and benefits, on-site daycare, tuition support, wheels-to-work programs and more.
“Healthcare careers, particularly nursing, provide an opportunity to contribute to a meaningful, long-term and successful career,” said Amy Brown, MSN, RN, NE-BC, chief nursing officer of E.W. Sparrow Hospital. “Our state and our current pool of nurses continue to age, creating a situation where we need young professionals entering the workforce to consider nursing careers to meet the future demand of our hospitals.”
Caring for Michiganders isn’t limited to only multi-year medical degrees. Quality patient care relies on professionals from almost every sector, and local hospitals in every community around Michigan are seeking hardworking, passionate residents to help save lives.
“For Michigan hospitals to continue to deliver safe, high-quality care to the communities we serve, we are all in need of clinical and non-clinical talent,” said Shannon Striebich, MHA Board of Trustees Chair-elect, ministry president and senior vice president of Operations at Trinity Health Michigan. “Like most hospitals across the state, Trinity Health Michigan is working very closely with our neighboring colleges and universities to ensure students are aware of rewarding career opportunities within healthcare and the many good-paying jobs available within their own community.”
The campaign will launch Monday, June 12 and run through September 2023. Residents will be directed to mihospitalcareers.com where they can learn more about the career paths available in healthcare and the different training programs and scholarships available across Michigan.
Manufacturing delays at several pharmaceutical companies are causing nationwide shortages of two critical chemotherapy medications – forcing Michigan hospitals and health systems to find alternative treatments for patients, some of which may be less effective. The two drugs are cisplatin and carboplatin and are used to treat several types of cancer, including bladder, lung, ovarian and testicular cancers. The shortage of these chemotherapy drugs is widespread across the country, impacting hospitals throughout all regions of Michigan.
Both drugs are provided by healthcare providers as injections to oncology patients. The shortage of cisplatin was originally reported to the U.S. Food & Drug Administration (FDA) Feb. 10, 2023, while carboplatin was reported April 28, 2023. Both shortage durations are expected to last at least into June 2023.
To reduce the impact of shortages on patients, hospitals are trying many different solutions, including managing existing supply, seeking alternative sources for drugs in short supply, adjusting chemotherapy regimens for impacted patients and working with healthcare systems, as well as state and federal officials, to mitigate these challenges.
“The priority of hospitals is delivering the right care to every patient, every time,” said MHA CEO Brian Peters. “Drug shortages severely hamper a hospital’s ability to provide patients with the best treatment, while forcing hospitals to implement strategies that may increase the cost of care and sometimes do not offer the same effectiveness in treatment.”
This current shortage follows a national trend of drug shortages impacting healthcare providers for years. A survey of medical oncologists published in the New England Journal of Medicine found 83% were unable to prescribe their preferred chemotherapy agent due to shortages.
The MHA supports the following strategies that will address the issue:
Relaxing prior authorization requirements from health insurers for alternative therapies so they can be widely used, as appropriate.
Establishing an early warning system to help avoid or minimize drug shortages.
Removing regulatory obstacles faced by manufacturers and the FDA as a way of averting or mitigating drug shortages and allowing drug imports.
Improving communication with healthcare providers, including extent and timeliness of information. There often is no transparency on the cause of a drug shortage and many shortages occur with generic drugs.
Exploring incentives to encourage drug manufacturers to stay in, re-enter or initially enter the market.
Patients concerned about the impact of this drug shortage should contact their healthcare provider.
The following joint statement can be attributed to Brian Peters, CEO of the Michigan Health & Hospital Association, and Kim Meeker, RN, BSN, MBA, president of the Michigan Organization for Nursing Leadership (MONL).
Kim Meeker, RN, BSN, MBA, president of the Michigan Organization of Nurse Leaders.
A package of bills announced today in the Michigan Legislature has the potential to severely harm hospitals and access to important services for patients, if ultimately passed. Proponents of the legislation falsely claim this will address nursing shortages in Michigan, but those claims couldn’t be further from the truth. Michigan hospitals are trying to fill 8,500 job openings for nurses. Instituting a one-size-fits-all mandate requiring hospitals hire more nurses who do not currently exist will limit the services hospitals can offer to their communities, prolong the time it takes for a patient to receive care and hinder the ability of hospitals to respond to a crisis in fear of violating Michigan law.
Tangible, proven steps are needed to attract more nurses to Michigan. Those include passing legislation that allows Michigan to join the Nurse Licensure Compact, expanding Michigan Reconnect eligibility and increasing penalties for those who commit acts of violence against healthcare workers.
MHA CEO Brian Peters.
Michigan hospitals and health systems have been hard at work addressing nursing shortages over recent years. Those efforts include:
Obtaining a total of $300 million in state funding that has benefitted at least 69,000 healthcare workers for the purposes of the recruitment, retention and training through Public Act 9 of 2022 and Public Act 5 of 2023.
Securing additional nurse training opportunities including expanded state policy allowing four-year BSN programs at community colleges.
Expanding Michigan Reconnect to allow funds to support Michiganders moving from a licensed practice nurse (LPN) to a registered nurse, or from a patient care technician certificate to a LPN.
Modernizing the scope of practice for certified registered nurse anesthetists which allows flexibility for each hospital to choose the anesthesia care model that best fits its location, staffing and resources under Public Act 53 of 2021.
Providing emotional well-being support to healthcare workers through a partnership with the Duke Center for Healthcare Safety and Quality that has so far assisted 5,000 healthcare workers from 144 organizations throughout Michigan.
Nursing careers not only provide stable, well compensated jobs with a set of transferrable skills that rarely become obsolete, but in a rewarding environment that truly make a difference in the lives of the patients they serve. The MHA and our member hospitals and health systems, together with MONL, remain committed to focusing on effective solutions that support Michigan nurses and ensure safe patient care.
Provides Nearly 568,000 Direct Jobs, 219,000 in Hospitals Alone
The Partnership for Michigan’s Health reports healthcare directly employed nearly 568,000 Michigan residents in 2021, demonstrating that healthcare remains the largest private-sector employer in the state despite continued staffing losses attributed to the COVID-19 pandemic. The 2023 release of The Economic Impact of Healthcare in Michigan shows direct healthcare workers in Michigan earned nearly $46 billion that year in wages, salaries and benefits. Hospitals alone employed 219,000 individuals in the state in 2021.
Direct healthcare employment helps create additional jobs that are indirectly related to or induced by healthcare. These indirect, healthcare-supported jobs are held by more than 470,000 people who earned about $28 billion in 2021 in wages, salaries and benefits. Together with their employers, the more than one million workers in healthcare contributed $19.6 billion that year in local, state and federal taxes. These taxes include Social Security, income, motor vehicle, sales, property, corporate and more.
Data from 2021 shows the impact the pandemic had on the healthcare workforce in Michigan. While direct jobs decreased by nearly 4,000 total positions, direct wages increased by 4% year-over-year as labor costs rose due to increased demand. Direct wages in hospitals increased by 6.8%, as many hospitals offered wage adjustments and bonuses to recruit and retain employees, and increased the use of contract labor with staffing agencies. A separate study conducted by the MHA in 2022 showed expenses related to contract labor and recruitment and retention bonuses increased by $516 million from 2020 to 2021. Nursing and Residential Care also experienced a similar trend, as the number of jobs in the category fell by about 8,000 but compensation remained about the same.
The increase in direct wages for hospital employees follows a national trend. A recent American Hospital Association report shows labor costs increased 20.8% between 2019 and 2022. The increase is due in large part to a greater reliance on contract staffing agencies due to staffing challenges and to meet patient demand. Increased labor expenses have a more profound impact on hospitals and health systems, as labor expenses account for more than 50% of total expenses for most hospitals. In addition, healthcare reimbursement is unable to quickly respond to inflationary pressures since rates with commercial payers are negotiated months in advance while Medicare and Medicaid rates are even slower to adjust, presenting additional financial challenges when responding to sudden labor market demand.
The loss of healthcare workers has also had a detrimental impact on physician practices. According to a survey conducted by the Michigan State Medical Society, 86% of participating physician practices experienced a decline in the number of health professionals and administrative staff employed by the practice since the start of the COVID-19 pandemic, including physician assistants, nurse practitioners, registered nurses and medical assistants. In addition, 69% reported staffing shortages led to increased wait times for patients, 55% had to reduce hours or available appointments and 43% experienced an estimated 10-25% reduction in patient revenue.
The report was compiled by the Partnership for Michigan’s Health, which consists of the Michigan Health & Hospital Association, the Michigan State Medical Society and the Michigan Osteopathic Association, all based in the greater Lansing area. It uses 2021 data, which is the most recent available.
“Hospitals rely on many workers in a variety of clinical and non-clinical roles to operate every hour of the day, year-round.,” said Michigan Health & Hospital Association CEO Brian Peters. “This report demonstrates the significant number of people it takes to have a high-quality, functioning healthcare system available to all Michiganders.”
“Healthcare is a key driver of not only physical health, but the economic wellness of Michigan,” said Kris Nicholoff, executive director of the Michigan Osteopathic Association. “The Economic Impact of Healthcare in Michigan shows the extensive value healthcare provides to our state, both as an employer and in providing tax revenue for communities.”
“The same dynamics that are at play in our hospitals affect Michigan’s physician practices, which are also struggling to recruit and maintain physicians and ancillary staff,” said Tom George, MD, Interim Chief Executive Officer of the Michigan State Medical Society. “We encourage students to consider pursuing a profession in healthcare, which offers rewarding and stable careers across a variety of disciplines.”
Demand for healthcare careers remains high. A March survey of Michigan hospitals reported more than 27,000 current job openings, including nearly 8,500 open nursing positions, 4,500 technician openings and 3,000 positions for clinical assistants from the 95% of the MHA membership who participated. The need for healthcare workers is not unique to hospitals, and is shared by physician practices, nursing and residential care facilities, home health services, ambulatory services and other healthcare organizations.
The 18th edition of The Economic Impact of Healthcare in Michigan was compiled using IMPLAN® cloud software to quantify healthcare’s significant economic impact in the state. The data represents direct, indirect[1] and induced[2] healthcare jobs; taxes paid by those workers and their employers; and salaries, wages and benefits earned. The report is an online, interactive tool that allows users to examine these economic impacts from a statewide perspective and by region, county or congressional district. It is available at www.economicimpact.org.
[1] Indirect jobs are those created to support a larger employer or industry (for example, a laundry that cleans linens for a hospital).
[2] Induced jobs are those created by the spending of people who work in the indirect jobs (for example, a restaurant waiter who serves the laundry workers).
Gov. Whitmer signed House Bill 4016 today, appropriating $75 million for the recruitment, retention and training of hospitals workers. This funding will directly benefit hospital workers and play an important role in helping to support hospitals experiencing a generational workforce shortage.
According to a recent survey of hospitals conducted by the MHA, there are more than 27,000 job openings in hospitals throughout Michigan, including nearly 8,500 nursing job opportunities. Other areas with a high need include technicians with more than 4,500 job openings, clinical assistants with 3,000 openings and 1,700 openings for operational support in areas such as environmental services and food service.
Hospital staffing levels determine patient capacity within facilities. Michigan has lost a high of about 1,700 staffed hospital beds since 2020 because of workforce shortages. Filling these job openings would increase statewide inpatient hospital capacity, expand service availability and assist in the transition of care outside of a hospital.
“Maintaining the sustainability of our healthcare workforce is a universal priority for all Michigan hospitals and health systems,” said MHA CEO Brian Peters. “We appreciate the work from the Michigan Legislature and Gov. Whitmer in passing this funding that will support hospital workers and help solve staffing shortages that persist throughout healthcare.”
House Bill 4016 was introduced by Rep. Angela Witwer (D-Delta Township) and passed the Michigan Senate Feb. 28 and the Michigan House of Representatives March 1 with bipartisan support.
Those interested in a healthcare career should visit the careers webpage of their local hospital or health system.
The following statement can be attributed to Brian Peters, CEO of the Michigan Health & Hospital Association.
Michiganders deserve local access to care from their hospitals, but that access has been threatened by a generational workforce shortage. On behalf of our member hospitals and health systems, we are very thankful our partners in the Michigan Legislature recognized this need and continue to be involved in developing solutions to retain and expand healthcare talent in Michigan. This supplemental appropriation will continue to assist in recruiting a talented and skilled workforce to Michigan hospitals, in addition to keeping and training existing staff.
There are currently more than 27,000 jobs available in Michigan hospitals. While our members continue to work closely with the education community to expand opportunities in the talent pipeline, this funding plays a crucial role in ensuring the viability of hospital service lines and capacity. We plan to work with the administration to ensure this funding is available as quickly as possible to make sure hospitals are staffed and ready for the health needs of all members of the community.
The following statement can be attributed to Brian Peters, CEO of the Michigan Health & Hospital Association.
Words can’t express the sadness and concern we feel this morning for the victims from the shooting last night on the Michigan State University campus. Our hearts break for the families of the victims and we have in our thoughts those we lost last night and those fighting for their life in the hospital.
The MHA and our member hospitals have extremely close relationships with our higher education partners. We have particularly close ties with Michigan State University due to the many connections the MHA has with the university here in the Greater Lansing area. However, much more than our close proximity, healthcare employs countless Spartans who graduate from East Lansing every year. Our hearts ache for our fellow Spartans and we mourn together.
Lastly, we want to applaud the first responders, including police, EMS and healthcare workers who selflessly responded to this senseless act of violence.
The following statement can be attributed to Brian Peters, CEO of the Michigan Health & Hospital Association.
Gov. Whitmer and her administration demonstrated their commitment to protecting hospitals and supporting healthcare workers with the release today of the 2024 executive budget recommendation. Not only does it continue to protect vital funding pools in the state budget, but also provides health equity resources and includes significant workforce investments that should help grow the healthcare talent pipeline.
Important items included in the state budget include support for rural and critical access hospitals, obstetrical services, graduate medical education, the Healthy Michigan Plan and Michigan’s Medicaid population. The investments to expand the Healthy Moms, Healthy Babies program and to implement recommendations from the Racial Disparities Task Force should help improve health outcomes and reduce disparities in care. The announced workforce development investments such as lowering the eligibility age for Michigan Reconnect are long-term strategies that should help fill the incoming talent pipeline as staffing challenges continue to impact hospitals and their overall patient capacity.
Actions like today show Gov. Whitmer is a healthcare champion and on behalf of Michigan’s hospitals, we thank her for helping Michigan advance the health and wellness of individuals and communities. The MHA is committed to working with lawmakers throughout the budget process to identify funding solutions that expand access to care, protect the viability of hospitals and assist healthcare workers.
