Legislature Approves Supplemental Budget

capitol building

On Dec. 10, the state Legislature approved a supplemental budget that restores vital hospital funding in fiscal year (FY) 2020, which began Oct. 1.

Michigan Capitol BuildingThe supplemental budget will restore some of the 147 line items that were vetoed by the governor earlier this year. Restored funding includes three MHA budget priorities that received bipartisan support as a direct result of the association’s successful advocacy efforts:

  • The Rural Access Pool.
  • The Obstetrics Stabilization Fund.
  • A significant Medicaid outpatient rate increase for critical access hospitals (CAHs).

Gov. Gretchen Whitmer announced that she will sign the bills, which were sent for her signature Dec. 11. The bills include a compromise between the governor and legislative leaders related to State Administrative Board powers to complete funding transfers within the budget, a sticking point in negotiations over the months-long stalemate.

The MHA will continue to advocate to restore funding for an additional line item that was not part of this budget agreement, a 7% increase to Medicaid outpatient reimbursement rates for all Michigan hospitals, not just CAHs. Lawmakers have stated they plan to work on additional supplemental budgets in 2020.

The MHA will work on additional resources for members as they assess the impact of the budget agreement and delayed FY 2020 payments. Members with questions may contact Adam Carlson at the MHA.