Michigan Legislature Passes State Budget, Preserves Healthcare Funding

The Michigan House of Representatives and Michigan Senate passed a state budget protecting all existing healthcare funding on Oct. 3.

House Bill (HB) 4706, sponsored by Rep. Ann Bollin (R-Brighton), passed by both chambers, includes the following:

  • Full funding for Medicaid and the Healthy Michigan Plan.
    • Complete recognition of hospital provider taxes and the ability to access those funds without additional legislative action or red tape.
  • Restoration of Specialty Network Access Fee (SNAF) funding.
  • Continued support for the rural and OB stabilization pools.
  • Preserved funding to support Maternal Levels of Care verification.
  • Restoration of funding for the Michigan Clinical Consultation and Care (MC3) program.

This funding reinforces support for Michigan hospitals, healthcare workers and patients. Full funding for Medicaid means maintained access to healthcare for all patients across communities, especially in rural and underserved areas. Furthermore, SNAF supports physician reimbursements for those providing care in vulnerable communities, while rural and OB stabilization pools ensure funding for rural areas and for labor and delivery services. Lastly, Maternal Levels of Care and MC3 funding were both sustained, safeguarding hospitals’ ability to collaborate among facilities and providers to guarantee women receive risk-appropriate maternal care as well as provide access to important pediatric behavioral health services in Michigan.

The MHA worked diligently with state lawmakers over the last several weeks to ensure this state budget protected hospitals, providers and patients, which led to the MHA’s full support of the finalized version of HB 4706. Following its passage, HB 4706 will now be sent to the Governor’s desk for her signature and its enactment into law.

The MHA published a media statement celebrating the budget, which was picked up by Gongwer and Michigan Advance.

Members with questions about the state budget should contact the MHA Advocacy Team.

Headline Roundup: House Budget Reaction

The MHA received a host of media coverage from across the state during the week of Aug. 25 after the MHA issued a media statement reacting to the state budget bill passed Aug. 26 by the Michigan House of Representatives.

House Bill 4706 would institute several harmful changes to hospital funding, which could result in more than 20,000 job losses in Michigan hospitals. The statement from MHA CEO Brian Peters expressed the MHA’s strong opposition to this version of the state budget, expressing the harmful consequences it would bring and the need for a state budget that protects existing hospital funding.

Friday, Aug. 29

Thursday, Aug. 28

Wednesday, Aug. 27

Tuesday, Aug. 26

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

Media Recap: Medicaid and Healthcare Costs

The MHA received media coverage during the week of Aug. 18 that continued to focus on the impact the One Big Beautiful Bill Act (OBBBA) will have on Medicaid as well as comments related to the impact hospital consolidations have on healthcare access.

Gongwer published a story Aug. 20 on the impact hospital consolidations have on healthcare costs and access to care for employees. MHA CEO Brian Peters was quoted in the article disputing the claim that hospitals are profiteers.

“Bashing community hospitals and the 220,000 hospital workers who show up every day of the year to care for Michigan patients is misguided and inflammatory,” said Peters. “Hospitals are focused on providing safe, high-quality, affordable care in every community they serve.”

NPR also published a story following an interview with Peters regarding the impact the OBBBA and new work requirements will have on healthcare in Michigan.

“The state of Michigan Department of Health and Human Services has estimated that as many as 700,000 Michiganders could lose coverage because of the reconciliation bill,” said Peters.

The new work requirements will necessitate that hundreds of thousands of enrollees document their eligibility every six months. Peters noted in the interview that there’s no evidence of widespread waste and abuse in the state’s Medicaid program.

“When you look at the Medicaid population here in the state of Michigan, we know that almost all of those folks are working and working full time,” said Peters.

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

Media Recap: Hospital Cost Pressures and Behavioral Health Partnerships

Lauren LaPine

The MHA received media coverage the week of Aug. 4 on hospital cost pressures, behavioral health partnerships and the impact of Medicaid cuts.

Gongwer published a story Aug. 4 about a PricewaterhouseCoopers report that reviews the trends in the medical sector that are continuing to result in higher costs for services that are placing growing pressure on hospitals. The report shows that factors that include growth in drug spending and reductions in federal funding are leading to decreased hospital margins.

“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.”

Second Wave Michigan also published an article Aug. 5 about behavioral health partnerships that hospitals have in the state. The story looks at both policy solutions such as Senate Bill 316, as well as the partnership between Network180 and Trinity Health Grand Rapids in establishing The Behavioral Health Crisis Center to divert patients in crisis from emergency departments and jails.

Lauren LaPine“If you come to a hospital emergency department and you’re in some level of a behavioral health crisis, that hospital has to work with the CMH in the area where the patient lives,” said Lauren LaPine, senior director of legislative and public policy, MHA. “That takes a lot of time and a lot of coordination.”

MLive and Michigan Public also published stories that include mentions of the MHA following U.S. Sen. Elissa Slotkin’s visit to Helen DeVos Childre’s Hospital. The stories reference the MHA’s estimate that Michigan hospitals will lose $6 billion over the next ten years from the One Big Beautiful Bill Act.

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

Mental Health Awareness Month Highlights Week of Media Coverage

Lauren LaPine

The MHA received news coverage during the week of May 19 highlighted by stories related to Mental Health Awareness Month and the need to expand state psychiatric bed capacity.

Lauren LaPine, senior director, legislative and public policy, MHA, speaks during a May 21 press conference on Mental Health Awareness Month, addressing long emergency department waits for psychiatric beds among Medicaid patients.

Lauren LaPine, senior director, legislative and public policy, MHA, joined state lawmakers and University of Michigan Health-Sparrow clinicians during a press conference May 21 about Mental Health Awareness Month. LaPine focused her comments on the high number of patients waiting in emergency departments across the state for an inpatient psychiatric bed. Many of these patients are Medicaid beneficiaries and experience further delays awaiting a clinical assessment.

WILX News 10 and WLNS 6 News attended the press event and aired stories during their evening news broadcasts.

“Last year, for over 18 months, we collected data from our hospitals and health systems that told us that on any given day, there are more than 155 patients that are stuck in emergency departments across the state that are looking for behavioral health services,” said LaPine.

Other speakers included:

  • Chandu Vemuri, MD, chief medical officer, University of Michigan Health-Sparrow
  • Dominic Barberio, MD, psychiatrist, University of Michigan Health-Sparrow
  • Rep. Angela Witwer (D-Delta Township)
  • Rep. Matthew Bierlein (R-Vassar)

The MHA also provided comment to several stories related to a hospital drug pricing study released by the Michigan Health Purchasers Coalition. The study uses a limited data set of claims data in an attempt to show pricing variances across hospitals for three prescription drugs. MHA Executive Vice President spoke with Crain’s Grand Rapids and WLNS News 6, explaining the differences between hospital charges and what hospitals actually receive as reimbursement, as well as the myriad of factors that determine hospital financing, including legacy contract agreements, mergers and acquisitions, the presence of group purchasing agreements, patient acuity, and labor and overhead costs.

“There are a lot of drugs out there. Picking and choosing a few of them probably doesn’t tell the whole story about the expensive pharmaceuticals in our health care system,” said Appel to Crain’s. “Everybody in the system is trying to do their best. There’s lots of room for improvement, but I don’t think identifying a few items and saying, ‘look at this’ is a way to get us to solving some of the affordability needs that we have for our system for patients.”

Adam Carlson speaks at a Protect MI Care press conference.
Adam Carlson speaks at a Protect MI Care press conference.

Adam Carlson, senior vice president, advocacy, MHA, also spoke at a Protect MI Care coalition press conference May 21 in Lansing about federal Medicaid cuts. Carlson was quoted in an article by Gongwer discussing how the cuts will impact all Michigan residents.

“It’s going to lead to millions of people losing their health insurance coverage, and these funding cuts to Medicaid, they’ll impact access to care for all Michiganders, not just those with Medicaid as their insurance coverage,” said Carlson. “It’s an important program across all state hospitals, but especially for the 65 rural hospitals that depend on it to keep their doors open.”

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

 

Medicaid Cuts and Hospital Economic & Workforce Impact News Coverage

Laura Appel

Laura AppelThe MHA received news coverage during the week of May 12 related to federal Medicaid funding cuts and the release of the hospital economic and workforce impact data.

Crain’s Detroit Business published an article May 13 following the release of draft bill language from the House Energy and Commerce Committee as part of the budget reconciliation process, which calls for imposing federal work requirements and freezing state directed payment programs for healthcare providers.

MHA Executive Vice President Laura Appel spoke with Crain’s, expressing the MHA’s concerns on the draft language.

“We of course remain deeply concerned about things like doing redetermination of folks’ eligibility for the coverage on less than an annual basis and things like work requirements or community benefit requirements for certain folks who currently qualify for coverage,” said Appel. “All of those things are barriers to folks.”

Second Wave Michigan also published a story May 13 about potential Medicaid funding cuts, as part of their MI Mental Health Series. Lauren LaPine, senior director, legislative and public policy, MHA, is quoted in the piece discussing what impact the cuts would have to hospitals.

“A real consequence of Medicaid cuts will be closures of service lines and even hospitals,” said LaPine. “When hospitals have to cut services because Medicaid is cut, those services are lost for all patients and not just those who receive health care coverage through Medicaid. Medicaid is the single largest payer for long-term care, maternity care, and mental health services. It is a cornerstone of our health care system and keeps people healthy at every stage of life.”

The MHA also received news coverage from Gongwer and dBusiness following the release May 12 of the association’s annual Economic Impact of Healthcare report and hospital workforce survey results.

Lastly, MHA CEO Brian Peters provided a quote of support in a press release issued by U.S. Sen. Gary Peters (D-MI) following introduction of the Mapping America’s Pharmaceutical Supply (MAPS) Act.

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

Lee Discusses AI in Healthcare

Jim Lee speaks with Mid-Michigan NOW about AI.
Jim Lee speaks with Mid-Michigan NOW about AI.
Jim Lee speaks with Mid-Michigan NOW about AI.

Jim Lee, senior vice president, data policy & analytics, MHA, appeared in a story about artificial intelligence (AI) in healthcare aired by Mid-Michigan NOW on April 23.

Lee discussed how AI is being used by hospitals and providers to assist with medical data and information and to reduce administrative burden.

“AI and healthcare is sort of like having a super smart assistant that helps doctors and nurses by quickly sorting through mountains of data and medical information,” said Lee.

Lansing political news outlet Gongwer also published two articles on April 23 that quote MHA representatives.

MHA CEO Brian Peters appeared in a story covering the newly launch Protect MI Care coalition to protect against Medicaid funding cuts.

“[Medicaid is] the financial lifeline that keeps hospitals, mental health providers and nursing homes open,” said Peters. “Cuts at this scale would lead to facility closures, creating health care deserts that hurt everyone, regardless of how they’re insured.”

MHA Chief Nursing Officer Amy Brown also appeared in an article following her testimony in the House Health Policy Committee in support of House Bill 4246, which would add Michigan to the nurse licensure compact.

“An important tactic to improve our ability as a state to attract talent and make it easy for nurses to choose Michigan to practice is to join the nurse license compact,” said Brown. “Hospitals continue to prioritize recruitment and retention efforts, but with the aging demographics of our state and the lack of participation in the compact hinder our ability to recruit younger nurses to replace the many nurses nearing and entering retirement.”

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

Media Coverage Includes Focus on 340B, Tariffs & Medicaid

Elizabeth Kutter

The MHA received media coverage the week of March 3 on the Michigan Senate passing legislation that protects the 340B program, the potential impact of tariffs on hospitals and healthcare costs, as well as a radio appearance discussing potential federal Medicaid funding cuts.

Michigan Public aired a story March 6 following the broad bi-partisan passage of Senate Bills 94 and 95 by the full chamber. Senate Bill 94 would safeguard the 340B program, ensuring cost savings and preserves access to affordable healthcare services in both urban and rural Michigan communities. Further, this legislation adds first of its kind drug manufacturer transparency requirements, making Michigan’s legislation the strongest in the nation.

Elizabeth KutterElizabeth Kutter, senior director, government and political affairs, MHA, was interviewed by Michigan Public for the story.

“You have to be an entity that proves their eligibility in the program, which by default means that you are serving patients who are extremely vulnerable,” said Kutter. “You’re serving kids. You’re serving cancer patients. You’re serving people who, if your hospital closes or if healthcare access becomes limited, suddenly you’re seeing a very serious hospital desert for patients.”

Gongwer and MIRS also covered the passage of the bills.

In addition, Crain’s Detroit Business published an article March 3 looking at the impact of potential tariffs on a variety of Michigan industries, including healthcare. MHA CEO Brian Peters is quoted in the story addressing the impact to hospitals.

“Implementing tariffs on Canada, Mexico and China without exceptions for medications and medical supplies could jeopardize the availability and further increase the prices of already-expensive vital medications and health care devices Michigan hospitals need to provide appropriate patient care,” said Peters. “Tariffs will particularly exacerbate existing pharmaceutical shortages. China is responsible for providing a significant number of cardiac and oncology drugs, as well as active pharmaceutical ingredients needed to produce prescription drugs domestically. Many healthcare supplies are also produced in China and the United States does not have existing capacity to meet an increased demand for product.”

Peters also appeared on WJR 760AM March 3 to discuss the impact of potential federal Medicaid funding cuts on Michigan hospitals.

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

Executive Budget Recommendation News Coverage

MHA CEO Brian Peters

A MHA media statement published Feb. 5 was included in stories by Michigan news outlets covering the fiscal year 2026 executive budget recommendation.

The statement, attributed to MHA CEO Brian Peters, was mentioned by WLNS-TV and Gongwer. The WLNS article includes the reactions from numerous leaders, while the Gongwer story focuses specifically on the budget recommendation for the Department of Health and Human Services.

“This budget presented by the Whitmer administration today maintains stability for health care providers across Michigan,” said Peters. “We appreciate the continued protection of funding pools that preserve access to care for Michiganders, whether they require obstetrical services, care at rural and critical access hospitals or coverage from the Healthy Michigan Plan and Michigan’s Medicaid health plans. We are also encouraged to see continued attention towards issues that impact Michigan’s talent pipeline and remove barriers towards pursuing health care careers.”

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

Capitol News Outlets Cover 340B Legislation

MHA CEO Brian Peters

The MHA received media coverage the week of Dec. 9 on Senate Bill 1179, which would protect access to affordable prescription drugs and healthcare services through the 340B Prescription Drug Pricing Program. The bill was reported out of the Senate Oversight Committee Dec. 11 and passed the full Senate Dec. 13.

Lansing political outlets MIRS and Gongwer both published stories Dec. 11 that included portions of a media statement issued by the MHA after SB 1179 moved out of committee. Additional stories were published by MIRS Dec. 12, Gongwer Dec. 13 and 340B Report Dec. 13 following the passage of SB 1179 by the full Senate.

“Michigan’s senators stood up to the out-of-state pharmaceutical interest groups and we applaud them for their efforts,” said Peters. “We now call on the Michigan House of Representatives to follow the Senate’s lead and get this bill over the finish line. Michiganders can’t afford to continue to have their healthcare services attacked to pad PhRMA balance sheets.

Outside of this week’s activity on 340B, the Becker’s Healthcare Podcast published an episode Dec. 12 with Peters that was recorded at the Becker’s Healthcare 12th Annual CEO + CFO Roundtable. Peters discusses the evolving challenges and opportunities in healthcare, including cybersecurity, the role of AI, workforce issues and the importance of community partnerships to address health equity.

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