Gov. Whitmer signed July 20 the fiscal year 2023 state budget. Included in the 2023 budget agreement is $625 million in new investments for behavioral health funding and the healthcare workforce. This includes:
- $50 million to expand pediatric inpatient mental and behavioral health capacity throughout the state.
- $30 million to establish crisis stabilization units for mental and behavioral healthcare.
- $10 million to fund the essential health provider loan repayment program to cover behavioral and mental health professionals.
- New and ongoing funding of $3.5 million to support the statewide trauma system.
- $56 million to increase Medicaid reimbursement rates for primary care clinician services.
- $56 million to fund the Michigan Associate Degree in Nursing to Bachelor of Science in Nursing program at community colleges across the state.
Additionally, the state budget provides the resources necessary for hospitals and health systems to continue advancing the health of individuals and communities throughout Michigan. Specifically, the budget reflects the protection or enhancement of many MHA priorities, including:
- Maintains funding for the Healthy Michigan Plan.
- Protects funding for the graduate medical education of physician residents.
- Supports disproportionate share hospitals.
- Continues funding for the rural access pool and obstetrical stabilization fund.
Each of these funding sources are instrumental to keeping hospitals financially secure, particularly those serving vulnerable and underserved populations. MHA CEO Brian Peters released a statement July 1 applauding the healthcare focus of this budget and highlighting significant investments toward rural and behavioral health. These new appropriations will allow hospitals to continue and expand upon service lines that are in increased demand due to the pandemic.
The governor also made several line-item vetoes that do not directly impact hospital priorities when signing the budget, including vetoes of funding the administration argues is anti-abortion.
Members with questions may contact Adam Carlson.