The following statement can be attributed to Brian Peters, CEO of the Michigan Health & Hospital Association.
Healthcare access is vital for the physical and economic health of our local economies. This budget proposal presented by the Whitmer administration checks the boxes hospitals and health systems need when it comes to crucial state funding. It includes new funding that can make significant impacts on maternal and infant health, behavioral health and the healthcare workforce, while maintaining existing support for a variety of needed healthcare programs.
Hospitals and health systems are focused on addressing health disparities. Supporting additional maternal health services can help reduce the disparity in maternal health outcomes among non-white women. Expanded Medicaid reimbursement for behavioral health services will improve access across the state and benefit the workforce. We’re encouraged to see funding for tuition-free community college pathways for Michiganders. This can increase the number of students pursuing healthcare pathways and address workforce shortages. Continuing funding pools to support rural and critical access hospitals, obstetrical services, graduate medical education, the Healthy Michigan Plan and Michigan’s Medicaid populations will help maintain access to care for underserved populations throughout Michigan.
Gov. Whitmer is clearly a healthcare champion. We look forward to working with other legislative healthcare champions during the budget process to make sure Michigan healthcare providers have the necessary funding support to advance the health and wellness of Michiganders and communities.
“Mankind’s greatest achievements have come about by talking, and its greatest failures by not talking. It doesn’t have to be like this. Our greatest hopes could become reality in the future. With the technology at our disposal, the possibilities are unbounded. All we need to do is make sure we keep talking.” ―Stephen Hawking
The new year always brings two traditional speeches from lawmakers: Gov. Whitmer just recently delivered her annual State of the State address, while President Biden will share the annual State of the Union address on March 7. While the economy, housing, education, border security, climate change and other important issues are featured in these speeches, the reality is that healthcare remains a top concern for millions of Americans, and therefore will continue to be front and center for elected officials and candidates at the state and federal level throughout this election year.
The bottom line is that the fragility of the healthcare continuum was exposed during the pandemic and four years later, the aftershocks can still be felt. Let’s touch on just a few issues that dictate the state of healthcare in 2024:
Healthcare Workforce
Michigan hospitals employ roughly 219,000 people and are desperately trying to hire thousands more in every corner of the state. A survey we conducted last year showed there were over 27,000 job openings in Michigan hospitals. Hospitals are often the largest employer in their respective communities and serve as critical economic engines. It takes longer to deliver care when hospitals don’t have enough staff, impacting the experience of patients and families.
Much like other industries in Michigan, healthcare has a supply and demand issue, but we feel it in a uniquely acute manner: the aging population not only contributes to an exodus of talent from the field, but it increases demand for healthcare services at the same time. And because we are classic “price-takers” when it comes to a huge share of our business (i.e. Medicare and Medicaid tell us what they are going to pay), our ability to pass rising labor (and supply chain) costs along to consumers is extraordinarily limited. The financial performance of hospitals across the state and country has been negatively impacted as a direct result, and it fuels our advocacy efforts related to our ongoing viability.
Healthcare needs to continue to refill the talent pipeline and we’re making progress on these efforts. From the MI Hospital Careers campaign to the individual partnerships created between health system and secondary-education institutions, the effort is being made to increase the supply of future professionals. I’m encouraged to hear Gov. Whitmer’s proposal for tuition-free community college for all Michiganders who graduate from a Michigan high school. We have been active in advocating for such a policy to improve the number of students pursuing these pathways to address the nursing shortage.
Behavioral Health
Behavioral healthcare in Michigan continues to be in crisis. We need to fund, support and reform our systems to better meet the behavioral healthcare needs of our communities. Responding to MHA advocacy, the Michigan Legislature provided $50 million in grant funding last year to increase access to pediatric inpatient behavioral health services. We are encouraged by what our member hospitals have planned to improve access, but more needs to be done. This will be a focus area for us in Lansing through the rest of the year, specifically looking at solutions that include continuing to expand care locations, clarifying insurance coverage policies and increasing the number of providers.
Prescription Drug Affordability
Increasing prescription drug costs are a key driver of escalating healthcare costs. These increased costs are not just experienced by patients at their local pharmacies, but hospitals are also large purchasers of prescription drugs and are experiencing the same costs, threatening their viability. Data shows drug costs rose by 36.9% from 2019 to 2021 and currently account for the largest portion of healthcare insurance premiums, costing 22.2 cents for every dollar.
With these dramatic cost increases, the 340B drug pricing program has never been more important. This critical program allows safety net hospitals and other community care organizations to access certain outpatient prescription drugs at discounted prices. It does not require any state taxpayer dollars and has contributed to supporting access to care to Michigan’s most vulnerable patients for more than 30 years. We’re hopeful to see legislation passed to protect these hospitals and the benefits they provide, such as supporting OB services, financial assistance programs for low-income patients or lowering the cost of prescription drugs.
Emerging Technology and AI
Technology continues to provide many opportunities and growth for healthcare. It can serve as a “force-multiplier” that allows our staff to work smarter, extending their impact. If used correctly, technology can improve the patient experience, care delivery, worker satisfaction and more. We’re already seeing it with the dramatic growth in the utilization of telehealth and the emergence of artificial intelligence (AI) applications throughout healthcare. Technology can help expand access to care for many of our rural or disadvantaged residents who are confronted with a variety of social barriers.
We’re seeing great innovation when it comes to technology and I expect even more in the years ahead. The “disruptors,” that is to say, the large, global companies known for their technological innovation (and deep financial resources) are increasingly turning their attention toward the $4 trillion American healthcare market. These entities could be viewed as a potential threat to traditional healthcare providers, payors and others in the health ecosystem – but could also be viewed as potential collaborators and strategic partners. Without a doubt, the future delivery and financing model will be shaped in some way by this development.
At the same time, the rise of sophisticated technology and the inter-connectedness between healthcare entities, their patients and the rest of the world gives rise to the specter of cybercrime. This topic is worthy of its own special focus (stay tuned for more on that in the months ahead), but for now, let me just point to the fact that the MHA was proud to be ahead of the game in this regard, helping to launch our own healthcare-focused cybersecurity operations center right here in Michigan with MHA Endorsed Business Partner CyberForceQ.
These are just a few of the countless, complex issues that will impact Michigan healthcare in the year ahead. Plenty to be concerned about, for sure. But I remain fundamentally optimistic and hopeful about the future. Our healthcare workers are committed and resilient. And our policymakers continue to acknowledge the dependent relationship their communities have with healthcare. While I know better than to predict much of anything in an election year, I feel confident in predicting healthcare will continue to help make Michigan a better place, no matter what the political winds bring our way. All we need to do is continue our most human connection – let’s keep talking with each other and craft a positive future together.
MHA CEO Brian Peters speaks with LLoyd Jackson as part of the WJR Live in Lansing broadcast.
MHA CEO Brian Peters appeared on Detroit’s WJR 760 AM’s JR’ Morning with Guy Gordon, Jamie Edmonds, and Lloyd Jackson’s “Live from Lansing” broadcast Jan. 25 as part of the station’s annual coverage of legislative and policy issues facing the state the morning after Gov. Gretchen Whitmer’s State of the State address. The MHA sponsored the program, with the broadcast hosted at the Courtyard by Marriott Lansing Downtown.
As part of the program lineup, Peters spoke with Gordon, Edmonds and Jackson about the state of hospitals and the many challenges they face, including the healthcare workforce, behavioral health and prescription drug affordability. Other notable interviewees during the event included Whitmer; Senate Minority Leader Aric Nesbitt (R-Lawton), House Minority Leader Matt Hall (R-Richland Township), Rep. Matt Koleszar (D-Plymouth) and Sandy Baruah, president and CEO, Detroit Regional Chamber.
The State of the State address the previous evening primarily focused on 2023 policy achievements achieved by the first Democratic Legislature in 40 years and shared several policy proposals focused on lowering costs for Michiganders, improving education and strengthening economic development. One specific item mentioned by Whitmer relevant to hospitals is the intention to make the first two years of community college tuition-free for every high school graduate. Doing so would remove any financial barrier that may prevent students from pursuing healthcare degree, certificate and credentialing programs at community colleges. This policy item has been a solution offered by the MHA since last year to address nursing shortages.
As a sponsor of the event, the MHA developed a 60-second message for airing before and during the broadcast. Members with questions should contact John Karasinski at the MHA.
Gov. Whitmer signs House Bills 4520 and 4521 that increase the penalties for assaulting a healthcare worker or volunteer.
The MHA received media coverage the week of Dec. 4 on a new law signed by Gov. Whitmer that increase the penalties for assaulting a healthcare worker or volunteer, as well as stories on expanded nursing education opportunities and proposed Medicaid rate increases. The coverage includes quotes from MHA CEO Brian Peters and MHA Executive Vice President Laura Appel.
Below is a collection of headlines from around the state.
“Let us not seek the Republican answer or the Democratic answer, but the right answer.” ― John F. Kennedy
Given that the Michigan Legislature has officially adjourned sine die, it is now an appropriate time to reflect on the success of our MHA advocacy throughout 2023. As always, healthcare was in the spotlight as a political and public policy priority. Our team was incredibly busy as we worked to support bills that would advance the health of individuals and communities, and to oppose those bills that would run counter to our mission.
A full recap of these pertinent bills is available, but I want to lift up a few of particular importance. First, for many years, the MHA has advocated for healthcare workers to have similar protections from violence as other first responders. We’re thankful House Bills 4520 and 4521 that increase the penalties for assaulting a healthcare worker or volunteer are soon to be signed by Gov. Whitmer. We know this legislation is just one step towards improving workplace safety and our association will continue to work on more opportunities to protect the healthcare workforce from violence through our advocacy at the state and federal level, the MHA Keystone Center and the MHA Service Corporation.
In addition, the governor signed legislation that will add protections found in the Affordable Care Act to Michigan law. Public Acts 156-163 of 2023 memorialize important protections for Michiganders, such as no-cost essential services, including preventive, mental health and emergency services. A variety of other bills await the return of the legislature in 2024 on issues including auto no-fault insurance, telemedicine, sharps containers, behavioral health policy, maternal and infant health and more.
Of course, seeing no action besides testimony on House Bills 4550-4552 is another testament to the work of our team. These bills would mandate one-size-fits-all nurse staffing ratios for all Michigan hospitals and create significant access issues for patients. As discussed at length in a recent CEO Report, the MHA has communicated with all 148 state legislators to explain the complexity associated with hospital staffing and the tangible solutions that will actually address workforce shortages. We have significantly increased the awareness and understanding of the issue for lawmakers, and the bills not receiving a vote in committee is an example of our effectiveness in that regard.
In addition to all these policy-oriented items, we successfully advocated to protect Medicaid funding for hospitals, including graduate medical education, rural access and OB stabilization, and also secured new funding for recruitment and retention of healthcare workers and for pediatric behavioral health. And of course, we stood tall to prevent any erosion in our Certificate of Need laws, or our medical liability reform protections, both of which continue to play an important role in ensuring access to quality, affordable care for all.
Our work also extends to Washington DC and Capitol Hill. We continue to work closely with the American Hospital Association on federal advocacy that supports Michigan hospitals on issues including Medicare policy, site-neutral payments, the 340B drug pricing program, the healthcare workforce and much more. And just as we have benefitted tremendously from our partnership with Public Affairs Associates (PAA) as our long-time advocacy firm here in Lansing, we are also pleased with our new partnership with Cornerstone Government Affairs, which is helping us with our important work at the federal level.
We cannot accomplish our advocacy goals without the individual commitment from our member hospitals and health systems, large and small. At the end of the day, our unity is our strength; a great example of this is the unified opposition letter – representing 100% of our membership – that we shared with lawmakers last month in opposition to the nurse staffing legislation.
There is a lot of uncertainty in the year ahead. As widely reported, the state House is evenly split between Republicans and Democrats until special elections are held next April. It is also no secret that 2024 is a presidential election year, with all the political dynamics and theatre that will inevitably accompany the entire process. Finally, depending on the outcome of the November election, the lame-duck session that will follow could either be a low-key affair with not much on the agenda…. or a nerve-wracking period fraught with unexpected twist and turns that could directly impact multiple priority issues. Regardless, I am extremely confident the MHA will continue to deliver outstanding results that support our healthcare workers, our patients and communities.
The following statement can be attributed to Brian Peters, CEO of the Michigan Health & Hospital Association following Gov. Whitmer’s What’s Next address.
On behalf of Michigan hospitals and health systems, the MHA is very pleased to see Gov. Whitmer prioritize healthcare and improving access to care for Michiganders. Prescription drug costs continue to grow at alarming rates. Addressing prescription drug affordability will help improve access to important medication for residents throughout Michigan, leading to improved health outcomes.
Our association looks forward to working with the administration and lawmakers to support efforts to reduce costs for lifesaving drugs, remove barriers to prescription drug access and protect existing solutions such as the 340B drug pricing program to increase affordable prescription drug access for Michigan residents.
The MHA received media coverage the week of July 17 regarding the healthcare workforce, federal legislation to address drug shortages and bills signed by Gov. Whitmer eliminating burdensome provisions in the Healthy Michigan Plan and making changes to help ensure the program’s long-term success.
MHA CEO Brian Peters is quoted in multiple stories. Below is a collection of headlines from around the state.
Gov. Whitmer signed House Bill 4016 today, appropriating $75 million for the recruitment, retention and training of hospitals workers. This funding will directly benefit hospital workers and play an important role in helping to support hospitals experiencing a generational workforce shortage.
According to a recent survey of hospitals conducted by the MHA, there are more than 27,000 job openings in hospitals throughout Michigan, including nearly 8,500 nursing job opportunities. Other areas with a high need include technicians with more than 4,500 job openings, clinical assistants with 3,000 openings and 1,700 openings for operational support in areas such as environmental services and food service.
Hospital staffing levels determine patient capacity within facilities. Michigan has lost a high of about 1,700 staffed hospital beds since 2020 because of workforce shortages. Filling these job openings would increase statewide inpatient hospital capacity, expand service availability and assist in the transition of care outside of a hospital.
“Maintaining the sustainability of our healthcare workforce is a universal priority for all Michigan hospitals and health systems,” said MHA CEO Brian Peters. “We appreciate the work from the Michigan Legislature and Gov. Whitmer in passing this funding that will support hospital workers and help solve staffing shortages that persist throughout healthcare.”
House Bill 4016 was introduced by Rep. Angela Witwer (D-Delta Township) and passed the Michigan Senate Feb. 28 and the Michigan House of Representatives March 1 with bipartisan support.
Those interested in a healthcare career should visit the careers webpage of their local hospital or health system.
The MHA received media coverage the week of Feb. 6 regarding a variety of topics, including the fiscal year 2024 executive budget recommendation, the role food insecurity has as a social determinant of health, the new state House Behavioral Health subcommittee and the need for hospitals to make infrastructure updates.
Below is a collection of headlines from around the state that includes interviews or statements from MHA representatives. Included is coverage from a media statement from MHA CEO Brian Peters released a statement published in support of the executive budget recommendation, thanking Gov. Whitmer for her continued commitment to protecting hospitals and supporting healthcare workers.
The following statement can be attributed to Brian Peters, CEO of the Michigan Health & Hospital Association.
Gov. Whitmer and her administration demonstrated their commitment to protecting hospitals and supporting healthcare workers with the release today of the 2024 executive budget recommendation. Not only does it continue to protect vital funding pools in the state budget, but also provides health equity resources and includes significant workforce investments that should help grow the healthcare talent pipeline.
Important items included in the state budget include support for rural and critical access hospitals, obstetrical services, graduate medical education, the Healthy Michigan Plan and Michigan’s Medicaid population. The investments to expand the Healthy Moms, Healthy Babies program and to implement recommendations from the Racial Disparities Task Force should help improve health outcomes and reduce disparities in care. The announced workforce development investments such as lowering the eligibility age for Michigan Reconnect are long-term strategies that should help fill the incoming talent pipeline as staffing challenges continue to impact hospitals and their overall patient capacity.
Actions like today show Gov. Whitmer is a healthcare champion and on behalf of Michigan’s hospitals, we thank her for helping Michigan advance the health and wellness of individuals and communities. The MHA is committed to working with lawmakers throughout the budget process to identify funding solutions that expand access to care, protect the viability of hospitals and assist healthcare workers.
