MHA Monday Report March 9, 2020

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Combating the 2019 Novel Coronavirus (COVID-19)

The MHA is working closely with the Michigan Department of Health and Human Services (MDHHS), the American Hospital Association (AHA), the Centers for Disease Control and Prevention (CDC), and other state and federal agencies and organizations to ensure …

U.S. Supreme Court Agrees to Review ACA Determination in Fall

The U.S. Supreme Court decided March 2 that it will review, during its term beginning in October, a federal appeals court decision that held the Affordable Care Act’s (ACA) individual mandate unconstitutional.The high court also granted many healthcare

Court Blocks Michigan’s Medicaid Work Requirements

A U.S. District Court ruling issued March 4 invalidated Michigan’s Medicaid work requirements, which posed a threat to healthcare coverage for tens of thousands of Healthy Michigan Plan recipients. Judge James Boasberg’s order blocks Michigan…

MHA Members Asked to Submit Comments on CMS 340B Survey by March 9

A proposed survey by the Centers for Medicare & Medicaid Services (CMS) seeks to collect pricing data on Specified Covered Outpatient Drugs from all hospitals that participate in the 340B Drug Pricing Program. …

Critical Incident Stress Management Bill Signed Into Law

Gov. Gretchen Whitmer signed House Bill 4862 into law March 3, which expands confidentiality protections for participants and providers at healthcare facilities performing Critical Incident Stress Management services. …

Bills to Expand Telehealth Services Reported from House Committee

Members of the House Health Policy Committee voted March 5 to report House Bills 5412 through 5416, which would expand opportunities for providers to receive Medicaid payment for telehealth services. The MHA has supported…

Celebrate Patient Safety Awareness Week

Patient Safety Awareness Week, hosted by the Institute for Healthcare Improvement, will be celebrated March 8-14 to increase awareness about patient safety and recognize the work that is already in-progress to reduce the risk of preventable patient harm …

Nominations Sought for Healthcare Leadership, Advancing Safe Care Awards

The MHA is seeking nominations for two awards that recognize healthcare professionals for their efforts to lead the way to healthier communities. The MHA Healthcare Leadership Award recognizes outstanding members of the healthcare governing boards…

Proposed Policy on Medicaid Payments for Rural Hospitals Released

The Medical Services Administration recently released a proposed policy to implement the supplemental budget appropriation for fiscal year 2020, which included additional general funds to increase critical access hospital reimbursement.  Pending approval by the …

Healthcare Leaders Explored Rural Healthcare Issues at Breakthrough Event

More than 100 chief executive officers and senior leaders attended MHA Breakthrough Feb. 27 and 28 to discuss the competitive landscape and tactics to reinforce long-term viability. In a special Town Hall on Michigan’s Rural Healthcare Strategy, a coalition of Tennessee providers and government outlined how they are making several ambitious …

The Keckley Report

Paul KeckleyThe Road to Value-based Care is Inevitable but Bumpy: The Realities that Must Be Addressed​

“The U.S. health delivery system is destined to replace its flawed volume-based incentives with value-based purchasing, but the process is proving difficult. That’s the consensus view from Chief Strategy Officers of major health systems convened by Lumeris over the weekend in Montana.”

Paul Keckley, Feb. 2, 2020

News to Know

Upcoming events and important healthcare news for the week of March 9:

  • The Institute for Healthcare Improvement (IHI) is celebrating Patient Safety Awareness Week March 8 through 14.
  • The MHA Michigan Green Healthcare Committee will meet from 9 a.m. to noon Tuesday at MHA headquarters, Okemos.
  • As part of the webinar series from the MHA Endorsed Business Partner program, a webinar titled 340B Regulatory Update – Past, Present and Future will be hosted with SUNRx from 2 to 3 p.m. Tuesday.
  • The 2020 Patient Safety Organization (PSO) Annual Meeting will take place from 8 a.m. to 3 p.m. Wednesday at the VisTaTech Center – Schoolcraft College, Livonia.

MHA in the News

Read recent coverage about the MHA, including articles from Crain’s Detroit Business, Bridge Magazine and Interlochen Public Radio about the MHA’s 2020 Economic Impact of Healthcare in Michigan report, Medicaid work requirements and rural healthcare.

Proposed Policy on Medicaid Payments for Rural Hospitals Released

The Medical Services Administration (MSA) recently released a proposed policy to implement the supplemental budget appropriation for fiscal year (FY) 2020, which included additional general funds to increase critical access hospital reimbursement.  Pending approval by the Centers for Medicare & Medicaid Services (CMS), the proposal would:

  • Restore the rural access pool for small rural hospitals and sole community hospitals.
  • Remove critical access hospitals (CAHs) from the rural access pool.
  • Increase Medicaid outpatient rates for CAHs effective Jan. 1, 2020

Medicaid outpatient services provided by CAHs on and after Jan. 1, 2020, would be paid 71.7% of the Medicare outpatient prospective payment system (OPPS) rate, excluding an area wage adjuster, upon approval by the CMS. All other hospitals are paid 50.3% of the Medicare OPPS rate. The MSA will adjust the reduction factors annually to reflect changes to Medicare rates and maintain budget neutrality, consistent with current policy. The MHA encourages hospitals to review the proposed policy and submit comments to the MSA by April 8.  Members with questions should contact Jason Jorkasky at the MHA.

Executive Budget Recommendation Protects Hospital Funding

Chris Kolb

The fiscal year (FY) 2021 executive budget recommendation was presented to the Legislature Feb. 6 by State Budget Director Chris Kolb, and a FY 2020 supplemental budget request was also released.

 State Budget Director Chris Kolb presents the FY 2021 executive budget recommendation to the Legislature. While the state is facing flat general fund revenue and $600 million in increased ongoing fund costs in the FY 2021 budget, the administration presented a recommendation that addresses these challenges without making significant cuts to Michigan hospitals. Key elements in the proposals for FY 2020 and 2021 are as follows:

  • As a direct result of the MHA’s advocacy efforts, the governor proposed the first outpatient Medicaid fee increase since 2002, which would begin April 1, 2020, and extend through the FY 2021 budget. If approved by the Legislature and the Centers for Medicare & Medicaid Services, this is projected to result in nearly $300 million in net new revenue to hospitals from April 1, 2020, to Sept. 30, 2021 and will help address the challenges that inadequate outpatient Medicaid reimbursement rates place on all hospitals in Michigan, particularly the small and rural.
  • The executive budget recommendation protects Critical Access Hospital funding, the Rural Access Pool and Obstetrics Stabilization Fund from reductions.
  • Disproportionate share hospital payments and graduate medical education funding are also protected from reductions, continuing to reflect the MHA’s 2016 budget deal.
  • The state’s obligation for Michigan’s Medicaid expansion, the Healthy Michigan Plan, is fully funded. In addition, the executive recommendation includes $25 million in funding for extended postpartum coverage of 12 months for new moms who rely on Medicaid, which follows the announcement in the governor’s Jan. 29 State of the State address. The MHA will continue to work with this and future administrations and legislatures to ensure its protection at the state and federal levels.

The MHA will continue to keep members apprised as budget negotiations continue with the Legislature this spring. As outlined by a media statement issued by MHA CEO Brian Peters, the MHA will work with legislators and state officials on improving maternal health in the state while protecting our long-standing priorities to ensure every Michigander continues to receive the highest quality healthcare in Michigan’s hospitals.  Members with questions may contact Adam Carlson at the MHA.