Medicare & Medicaid Improve Michigan’s Health for 60 Years

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

Today marks the 60th anniversary of Medicare and Medicaid making a monumental difference in improving the health of Michiganders and supporting healthcare providers.

This anniversary reminds all of us about the value these programs bring to the health of our citizens and access to care throughout Michigan. At a time when the federal government has taken steps to limit these programs that will result in Michigan hospitals losing $6 billion over the next ten years, healthcare providers will continue to do everything in our power to protect these vital programs and the people they serve.

Nearly half of Michigan residents receive health coverage from these two insurance programs, and 40% of all babies born in the state every year are covered by Medicaid, demonstrating the reliance our state has on publicly available health insurance coverage. These programs help vulnerable Michiganders receive preventative care, cancer treatment, and important hospital and post-acute services during their time of need.

Our message to lawmakers is clear: act now to protect these programs before it is too late. If the harmful policies signed into law earlier this month come to pass, we will see less healthcare services offered in all areas of the state, more uninsured and sicker patients, and longer wait times in emergency departments.

The creation of these programs was a huge step forward for the health of our country. We can’t afford to go backwards by undermining Medicare and Medicaid and what they do for millions of Michiganders.

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

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: Medicaid Cuts

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.

Friday, July 11

Thursday, July 10

Wednesday, July 9

Tuesday, July 8

Monday, July 7

Thursday, July 3

Wednesday, July 2

Tuesday, July 1

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

Medicaid Funding Cuts Are Disastrous for Michigan Healthcare

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.

MHA CEO Report — A Year of Progress and Purpose

MHA Rounds image of Brian Peters

“There is no power for change greater than a community discovering what it cares about.” — Margaret J. WheatleyMHA Rounds graphic of Brian Peters

With another program year behind us, the MHA Annual Meeting served as a powerful reminder of our shared mission to advance the health and well-being of Michigan’s patients and communities. Despite an evolving political landscape, we’ve made meaningful progress and are moving ahead with clear purpose.

As you can imagine, the 2024-2025 MHA program year was marked by busy periods of state legislative activity and various developments at the federal level. We can attribute a tremendous amount of our success to Dr. Julie Yaroch, president of ProMedica Charles and Virginia Hickman Hospital, who served as board chair. Dr. Yaroch’s leadership, clinical expertise and passion for public health had significant impact across countless areas of work.

It’ll come as no surprise that ensuring access to quality healthcare for all Michiganders continued – and continues – to be a priority. This program year, the MHA successfully prevented proposed government mandated nurse staffing ratio legislation from receiving a committee vote. Advocacy efforts also continued around 340B to maintain access to community-based care and prevent drug manufacturer overreach. This resulted in strong bipartisan support for legislation that passed the Michigan Senate and collaboration at the federal level with Senator Debbie Stabenow on the SUSTAIN 340B Act.

I’d be remiss not to mention our response to proposed federal cuts to Medicaid. The MHA, alongside urban and rural members, has prioritized congressional meetings, grassroots communications, coalition efforts and collaboration with state executive leadership to send a strong, clear message: Michigan needs Medicaid.

All that said, playing defense didn’t define our program year. In an effort to grow and develop our healthcare workforce, the MHA successfully hosted the inaugural Healthcare Careers Conversation and led changes to the Michigan Reconnect Program. This resulted in 4,300 students enrolling in short-term healthcare programs, a complement to our ongoing MI Hospital Careers campaign work. Additionally, we pursued state legislation to address provider credentialing delays, secured key amendments to the Earned Sick Time Act and had a hand in proposed changes to the state’s unemployment compensation benefits, among many other employer-related policies.

I’m also incredibly proud to share that we worked with state legislators to design, draft and introduce legislation that makes assaulting a healthcare worker a felony, while tying it to appropriate criminal justice system diversions. Our MHA Keystone Center collaborated to offer active shooter trainings and workplace violence gap analyses to our members while serving as a founding partner of Lawrence Technological University’s Healthcare Violence Reduction Center (HVAC).

We were fortunate to see several MHA priorities included within the FY 2024 state budget, notably a large sum put toward mental and behavioral health. The MHA team successfully secured $8.3 million to launch a competitive grant program for hospital-based peer recovery coach (PRC) programs while leading the charge on a series of impactful prevention and data-driven efforts. Understanding that gaps in behavioral health continue to effect urban and rural hospitals alike, these successes lay the groundwork for what’s ahead.

Emerging technologies and the integration of artificial intelligence (AI) reinforced our commitment to addressing cybercrime and strengthening cybersecurity policy. With this in mind, the MHA worked directly with the Michigan Attorney General and state policy leaders to ensure hospitals are reflected as victims of cybersecurity events. Simultaneously, we engaged our MHA Service Corporation, MHA AI Task Force, CFO Council and industry experts to deploy a series of cybersecurity events and resources to members.

I’d like to applaud our teams for handling a handful of unforeseen challenges, including working over the course of many months to address critical supply chain needs following the devastating impacts of Hurricane Helene. We also saw impressive engagement across annual member events, from our MHA Human Resources Conference and MHA Keystone Safety & Quality Symposium to the Healthcare Leadership Academy and Excellence in Governance Fellowship.

These milestones are just a glimpse into what we accomplished together this program year. I’m deeply grateful to our MHA Board of Trustees, members, sponsors, business partners and dedicated MHA staff – your unity and unwavering dedication to this work continues to have a lasting impact.

As always, I welcome your thoughts.

Peters Appears on Becker’s Healthcare Podcast

Headshot of Brian Peters

The Becker’s Healthcare Podcast published an episode June 16 that features MHA CEO Brian Peters joining host Scott Becker to discuss the current healthcare landscape and what the future looks like.

Peters spent time discussing how relationships, advocacy and values-driven leadership help to maintain member unity at the MHA. Other topics of discussion include Medicaid policy, building lasting networks and lessons for emerging leaders.

“It is very rare to see a state hospital association that has literally every single hospital and health system in the state inside the membership,” said Peters. “We have every single member organization actively engaged with our organization and that really is the strength of the MHA.”

The Detroit News also published an article June 20 on the cuts to Medicaid funding included in the Senate Finance Committee’s proposed version of the budget reconciliation bill that includes an interview with MHA Executive Vice President Laura Appel. She focused on how the proposed reductions to provider taxes will impact patients and all Michiganders, regardless of insurance coverage.

“What’s in the Senate version, I want to be very clear, is specifically cutting Medicaid. It’s not addressing waste, fraud and abuse,” said Appel. “It’s cutting the funding that Michigan uses ― as do 48 other states ― to support Medicaid.”

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

Healthcare Makes $100+ Billion Impact to Michigan’s Economy

Healthcare Remains the Largest Private-Sector Employer in Michigan & Demand for Healthcare Jobs Remains High

The Michigan Health & Hospital Association published results from the 2025 Economic Impact of Healthcare in Michigan report as part of National Hospital Week (May 11-17), demonstrating a $106 billion total economic impact healthcare had in fiscal year 2023, the most recent data available.

More than one million jobs are either directly, indirectly or induced by healthcare in the state, contributing $79 billion a year in wages, salaries and benefits and an additional $23.6 billion a year in tax revenue. Hospitals alone provide more than 222,000 direct jobs and $10.7 billion a year in tax revenue, representing 44% of healthcare’s direct tax revenue and remaining the largest healthcare sector in the state. Overall, healthcare remains the state’s largest employer of direct, private-sector jobs.

Also released are the results from the MHA’s third annual Michigan hospital workforce survey, which shows the demand for hospital workers remains high, with hospitals hiring 58,000 employees in calendar year in 2024 and having 23,000 open positions statewide. The survey includes responses from more than 95% of all Michigan acute-care inpatient hospitals.

The results also show Michigan hospitals continue to outperform national nurse retention rates. The registered nurse (RN) turnover rate for Michigan hospitals is 2.3 percentage points lower than the national average of 16.4%. Collectively, Michigan hospitals now employ roughly 64,500 RNs.

“The success of Michigan’s economy is closely connected with the strength of our healthcare system,” said Michigan Health & Hospital Association CEO Brian Peters. “Healthcare is the foundation for many local communities. As Michigan ages and more individuals need complex care, the demand for healthcare services and workers continues to grow – and hospitals must meet that demand. As we celebrate National Hospital Week, we commend the hospital workers who show up to work every day to care for us and make Michigan healthy.”

To complement the hiring efforts of individual hospitals, the MHA continues to operate the statewide MI Hospital Careers public awareness campaign. Originally launched in 2023, it targets Michigan students and professionals considering a career change to express the value of healthcare careers.

The 20th 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).

The Majority of Michiganders Oppose Medicaid Cuts, New Statewide Polling Shows

New statewide polling shows 83% of Michiganders want to see Medicaid spending increased or kept about the same as Congress considers cutting hundreds of billions of dollars from the Medicaid program, which would terminate healthcare for thousands of Michigan residents. The local results mirror national polls from the Kaiser Family Foundation, Modern Medicaid Alliance, and others that consistently show a lack of support for Medicaid cuts.

EPIC·MRA, with support from the Community Mental Health Association of Michigan, Michigan Association of Health Plans, Michigan Health & Hospital Association, Michigan Primary Care Association, and Protect MI Care, conducted the new statewide poll to determine where Michiganders stand on proposed cuts to Medicaid.

Across political views and party affiliations, the percentage of Michiganders who want to see Medicaid spending decreased does not exceed 20% for any specific group, with only 19% of self-identifying Republicans seeking reduced Medicaid support.

Results reveal that 62% of Michigan residents believe the changes Congress is considering making to the Medicaid program are more about reducing federal spending than improving how the program works for people. Furthermore, 82% of Michigan residents oppose cutting Medicaid spending to pay for tax cuts, and 71% oppose cutting Medicaid in ways that would create a deficit in Michigan’s state budget.

Reflecting on the significance of Medicaid in Michigan, the poll found that 86% of Michigan residents feel Medicaid is important for people in their local community, and 76% express that Medicaid is important for their family members and friends. Michiganders’ feelings about the impact of Medicaid in their communities showed up statewide, with over 80% of people agreeing that Medicaid is important in their community across all regions of the state (From 86% in Wayne, Oakland, and Macomb Counties to 91% in West Michigan, 80% in Central Michigan, and 87% in Northern Michigan).

“This data sends a clear message: Michiganders from across the state and all walks of life see Medicaid as the important lifeline it is,” said MPCA CEO Phillip Bergquist. “Medicaid cuts under consideration in Congress threaten the health and financial stability of families across our state, and Michiganders don’t support them.”

2.6 million people get their health insurance through Medicaid in Michigan, representing approximately one in four Michiganders. Medicaid provides coverage for 38% of births in Michigan, 2 in 5 children, 3 in 5 nursing home residents, and 3 in 8 working-age adults with disabilities. And, Michigan’s Medicaid program is efficient, with per-enrollee costs among the ten lowest states in the country.

“These results show Michiganders understand that funding cuts to Medicaid are cuts to everyone,” said MHA CEO Brian Peters. “Medicaid allows healthcare providers to continue to offer access to care and healthcare services throughout the state and Michigan residents are clear in expressing the need to protect these services.”

MHA CEO Report — Highlighting Hospitals

MHA Rounds image of Brian Peters

“Sometimes when you sacrifice something precious, you’re not really losing it. You’re just passing it on to someone else.” ― Mitch Albom, The Five People You Meet in Heaven

MHA Rounds image of Brian PetersThis month’s CEO Report is being filed from Washington, DC, where I am honored to join my colleagues from throughout our state and nation at the American Hospital Association’s Annual Meeting. On the agenda are robust conversations about the many challenges confronted by the healthcare field amid a tumultuous and often unpredictable political environment. The timing is fortuitous, as we officially celebrate our healthcare providers with National Nurses Week beginning May 5, followed by National Hospital Week. These honorary weeks shine a spotlight on the amazing dedication of hospital and healthcare workers in service to their patients and communities and encourage us to show our deep appreciation.

Our nurses, and many other healthcare workers, were widely hailed as heroes throughout the pandemic, and the reality is that they continue to show extraordinary commitment to service on a regular basis.  Just one recent example: northern Michigan was ravaged by a devasting ice storm earlier this year and despite power outages that were measured in weeks, the healthcare providers in that region did whatever was necessary to make sure people received the medications and care they needed. This included utilizing snowmobiles and ATVs for patient and staff transport when countless roads remained inaccessible due to downed trees and power lines.

Hospitals annually quantify the benefits they provide to the community through the IRS 990 form, and the MHA disseminates our own Community Impact Report. However, in reality, it is impossible to adequately document or fully do justice to the examples shared above, and countless others.  Healthcare interactions change people forever. And I’m not talking about the physical changes from surgery or treatment, but the emotional impact that saving a life, lending a helping hand or crying shoulder can make for someone. In times of need, emergency and disaster, hospitals – and more specifically, the people who work inside of them – are there WHEN and WHERE you need them. The sacrifices made by these extraordinary people are real, and they do so for our benefit.

Later this month we’ll be able to share our latest economic impact and workforce data for Michigan hospitals and healthcare. While the data may be slightly different, the overall story remains the same: healthcare is the leading private-sector employer in Michigan and the demand and reliance on healthcare has never been greater. So, what can we do to help? May is a time to unite behind our healthcare institutions and the work they do every day to touch and change lives, improving the health and wellness of our communities. While Congress continues to contemplate potential Medicaid funding cuts that would have devasting consequences to healthcare access for all Michiganders, please join us in speaking up and sharing the importance Medicaid plays in our state. You can do so by using the MHA’s action alert to send a personalized message to your member of Congress. Your local hospitals – and more importantly, the nurses, doctors and other healthcare workers who work there – need your help.

As always, I welcome your thoughts.

Medicaid Remains Focus of Healthcare News Coverage

The MHA was successful in placing several news stories during the week of April 28 related to potential federal Medicaid funding cuts.

The Lansing State Journal published an op-ed from MHA CEO Brian Peters that was shared as part of the MHA’s participation in the Protect MI Care coalition that is urging members of Congress to protect Medicaid. The op-ed expressed the importance of Medicaid to Michigan’s healthcare system and the consequences to access to care for all Michiganders if significant funding cuts are implemented.

“The effects would ripple far beyond those who rely on Medicaid — every hospital, mental health clinic and nursing home that depends on Medicaid funding would feel the impact,” said Peters. “When facilities close, it’s not just Medicaid patients who lose out — it’s everyone in the community, regardless of what kind of insurance they have.”

MHA Executive Vice President Laura Appel also sat down with WILX News 10 on April 30 to discuss the potential funding cuts and appeared in a story published by Bridge on May 1 about the impact to rural providers.

“When we close intensive care for newborns, when we close labor and delivery units, they are closing for everyone,” said Appel to Bridge.

In other news, Crain’s Detroit Business published an article April 30 committee testimony on legislation that would have Michigan join the nurse licensure compact. MHA Chief Nursing Officer Amy Brown testified in support of the legislation and is quoted in the article.

“In addition to recruitment and coordination of care in our state’s border areas, joining the compact would positively benefit telehealth access,” said Brown. “Compact licensure means residents in Michigan can access more telehealth professionals in other compact states, increasing access points for our state’s residents.”

Appel also appeared on 760 WJR’s All Talk With Kevin Dietz on May 1 to discuss the compact.

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