Gov. Gretchen Whitmer signed two bills March 30 that will send additional funding to Michigan hospitals: a supplemental budget bill that raises Medicaid rates and a bill providing $50 million in funding for healthcare providers during the 2019 novel coronavirus (COVID-19) pandemic.
The supplemental budget includes a 7% increase in Medicaid outpatient reimbursement rates for all Michigan hospitals. If approved by the Centers for Medicare & Medicaid Services, it is projected to result in nearly $50 million in new net revenue to hospitals through the remainder of fiscal year 2020. The rate increase will help address the challenges that inadequate outpatient Medicaid reimbursement rates place on all hospitals in Michigan, particularly the small and rural.
The COVID-19 relief funding was included in another supplemental bill passed March 12. The newly signed bill provides $50 million in funding dedicated to expanding the capacity and capabilities of healthcare providers to treat COVID-19 patients. The MHA is working with state officials to ensure these funds are distributed to hospitals quickly as the impact of the COVID-19 pandemic is felt across the state.
The association encourages members to contact state elected officials and thank them for ensuring every Michigander continues to receive the highest quality healthcare in Michigan’s hospitals. Members with questions may contact Adam Carlson at the MHA.