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.
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.
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)
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.
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.
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.
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 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.
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.
The following statement can be attributed to Brian Peters, CEO of the Michigan Health & Hospital Association.
The budget reconciliation bill passed by Congress is disastrous for access to care for Michiganders and the healthcare providers who care for them.
Cuts to funding are cuts to care. Limiting how states can fund their Medicaid programs puts Michigan in an extremely difficult position. If the state can no longer provide the same reimbursement, hospitals will be faced with difficult choices that will include eliminating service lines or even entire facilities. The added bureaucratic requirements for Michiganders to maintain their health insurance will also take away health insurance benefits from our neighbors, friends and family, resulting in increased uncompensated care for healthcare providers. In total, this bill will cost Michigan hospitals more than $6 billion in total Medicaid funding over the next ten years.
This bill is an attack on Medicaid, expanded health insurance coverage and healthcare access. We are extremely disappointed with the actions taken by Congress. Today is an extremely large step backwards for making and keeping our communities healthier.
The MHA received news coverage during the week of June 9 that included local TV news stories on the Michigan House of Representatives passing a bill that would have the state join the National Nurse Licensure Compact and how federal funding cuts to Medicaid would impact northern Michigan, while the MHA also responded to a hospital drug pricing study story by the Lansing State Journal.
Adam Carlson, senior vice president, advocacy, MHA, speaks with WILX News 10 about the current nurse shortage.
WILX News 10 aired a story June 12 following the 57-52 vote by the Michigan House to have Michigan join more than 40 other states in the nursing compact. Adam Carlson, senior vice president, advocacy, MHA, was interviewed for the story, discussing the current shortage of nurses in hospitals, despite Michigan outperforming the national average retention rate for nurses.
“14% of Michigan nurses are turning over, which is lower than the national average, so Michigan is already doing an above-average job and doing a better job than most other states,” said Carlson. “It’s about trying to find those new ones and bring those new ones in.”
9&10 News also aired a story June 9 about how proposed Medicaid cuts could result in the loss of OB/GYN services in northern Michigan. MHA Executive Vice President Laura Appel spoke to 9&10 News about how having to travel to access healthcare services can impact long-term health.
“You’re traveling a greater distance for any problems you have, and the further that people have to travel, especially people with limited means, the less likely they are to be able to adhere to the best care plan that we might have for them,” said Appel.
The Lansing State Journal also published an article June 9 on a study released by the Michigan Health Purchasers Coalition (MIHPC) related to hospital drug pricing. The MIHPC published their report despite published studies by KFF that conclude price transparency data should not be used to draw broad conclusions about hospital pricing. Appel was interviewed for the piece, expressing the inability to verify the information from the MIHPC, the flaws associated with how they present inpatient drug prices for drugs predominantly administered in an outpatient setting and the lengths hospitals are going to minimize costs.
“Payers are trying to do what they can to keep costs down,” said Appel. “Hospitals are trying to do what they can to keep costs down. Patients are trying to do what they can to keep their out-of-pocket costs down. Everybody’s trying to pull the boat in the same direction, but there are just outside pressures that make our healthcare system somewhat costly and growing. And hopefully we can keep the growth at a minimum, but it takes a lot of effort.”
Lastly, Gongwer published an article June 13 following a press release issued by Gov. Whitmer on a memo from the Michigan Department of Insurance and Financial Services sharing 120,000 Michiganders could lose healthcare access if the Federal budget reconciliation legislation passed by U.S. House of Representatives is signed into law. MHA CEO Brian Peters is quoted in the press release and story.
“These proposed changes will cut healthcare coverage for countless individuals, making Michigan unhealthier and leading to worse outcomes and higher rates of uncompensated care,” said Peters. “Increasing health care costs and reducing access is a bad deal that Michigan hospitals uniformly oppose.”
Members with any questions regarding media requests should contact John Karasinski at the MHA.
The following statement can be attributed to Brian Peters, CEO of the Michigan Health & Hospital Association.