Michigan Legislature Advances Several Healthcare Bills During State Budget Negotiations

The Michigan Legislature passed more than 65 policy bills, including several healthcare-focused measures, as part of the state budget negotiations during the week of June 30.

Several healthcare bills advanced from the Legislature to the governor’s desk during fiscal year 2026-27 budget negotiations. None of the healthcare-related bills that advanced to the governor’s desk were actively opposed by the MHA.

MHA-supported legislation that passed includes the following:

  • HB 4101, sponsored by Rep. Matthew Bierlein (R-Vassar), creates a physical therapist (PT) licensure compact in the state.
  • HB 4103, sponsored by Rep. Julie Rogers (D-Kalamazoo), creates an occupational therapist licensure compact in the state.
  • House Bill (HB) 4309, sponsored by Rep. Dave Prestin (R-Cedar River), establishes a physician assistant licensure compact in the state.
  • HBs 4805 and  4808, sponsored by Rep. Bryan Posthumus (R-Rockford), make changes to the Children’s Trust Fund in Michigan. HB 4805 increases the annual disbursement cap to 8% for expenditures under the Children’s Trust Fund. HB 4808 amends the Open Meetings Act to allow the Board to meet electronically under any circumstances, including those requiring accommodation for absent members.
  • SB 301, sponsored by Sen. Joe Bellino (R-Monroe), provides tax credits to eligible employers whose employees take time off to serve as living organ donors.
  • SB 415, sponsored by Sen. Ruth Johnson (R-Groveland Township), requires Medicaid coverage for group prenatal care services.
  • Senate Bill (SB) 501, sponsored by Sen. Sylvia Santana (D-Detroit), authorizes and establishes a $90 license fee for a physical therapist seeking to practice under the PT compact.

Other bills the MHA monitored were passed, including:

  • HB 4779, sponsored by Rep. Pauline Wendzel (R-Watervliet), requires health facilities and agencies to develop and implement surgical smoke evacuation policies and systems during procedures likely to generate a surgical smoke plume, beginning one year after the bill takes effect.
  • HB 5249, sponsored by Rep. Dave Prestin (R-Cedar River), establishes a new type of ambulance operation license called an “ambulance operation adaptive care license.” The license would allow certain basic life support ambulance services to provide limited advanced life support when equipped with appropriate staff and resources to safely provide that higher level of care.
  • SB 716, sponsored by Sen. Paul Wojno (D-Warren), reduces the time that the Board of Pharmacy must determine a controlled substance’s schedule after a federal designation, rescheduling, or deletion from 91 days to 60 days.

In addition to these healthcare bills advancing to the governor’s desk, there was no legislative action on the Hospital Cost Review Board or Healthcare Consolidation Prevention Act proposals during the week. Members with questions may contact the MHA advocacy team.

MHA Releases FAQ on Rural Health Transformation Program Funding

The MHA recently released a new frequently asked questions (FAQ) document to help members better understand allowable uses, limitations and compliance requirements related to Michigan’s Rural Health Transformation Program (RHTP).

The FAQ clarifies that RHTP funding is temporary and intended to support specific care transformation activities. Funds cannot be used to cover routine operating costs, financial losses or to replace existing funding. Repayment may be required if funds are used for purposes not approved or if required documentation and reporting are not completed.

The document also addresses common questions raised by hospitals, including the use of RHTP funds for provider payments, health information technology investments, electronic medical record upgrades and limited facility improvements. In all cases, expenses must be directly connected to transformation activities approved by the Centers for Medicare & Medicaid Services (CMS).

Additional RHTP information and resources are available on the MHA’s Rural Health Transformation Program webpage. The MHA will continue to update both the FAQ and the webpage as more guidance becomes available from the Michigan Department of Health and Human Services and CMS.

Members with questions may contact Lauren LaPine-Ray at the MHA.

HHS Announces $100M Investment in Substance Use and Mental Health Treatment

U.S. Department of Health and Human Services (HHS) Secretary Robert F. Kennedy Jr. announced a $100 million investment to expand substance use disorder treatment, mental health services and housing-related supports under the administration’s Great American Recovery initiative.

The funding will launch the Safety Through Recovery, Engagement, and Evidence-based Treatment and Supports (STREETS) initiative, which will support targeted outreach, psychiatric care, medical stabilization, crisis intervention and connections to stable housing for individuals experiencing homelessness and substance use disorder.

HHS also announced a $10 million Assisted Outpatient Treatment (AOT) grant program to support adults who have difficulty engaging in traditional outpatient care. The program uses court-ordered, community-based treatment as an alternative to hospitalization, homelessness or involvement with the criminal justice system.

In addition, HHS announced changes allowing states and tribes to receive a 50% federal match to provide medications for opioid use disorder, buprenorphine, methadone and naltrexone, to parents whose children are at risk of entering foster care. The medications are approved by the U.S. Food and Drug Administration and are intended to support recovery and family stability.

Members with questions may contact Lenise Freeman at the MHA.

MHA Monday Report Feb. 2, 2026

State Legislative Weekly Recap: House Appropriations Committee Continues RHTP Testimony

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MHA Shares Recent Medicare and Medicaid Enrollment Analysis

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New MHA Infographic Provides Overview of RHTP Program in Michigan

The MHA recently released a new infographic that provides an overview of the RHTP in Michigan. This infographic highlights the scope of the program, Michigan’s rural health landscape and the $173 million awarded to the …


Pediatric Vaccination Guidance: What Michigan Providers Need to Know

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Deadline Approaching for MHA Healthcare Leadership Academy

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Hospitals Help: Munson Healthcare, Community Partners Offer Free Family Support Program

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New to Know


News to Know

  • The MHA recently created a dedicated newsroom webpage #HospitalsHelp, highlighting stories from member hospitals across Michigan and their community benefit efforts.
  • Stay connected with the MHA for the latest healthcare updates in Michigan across its social media platforms, including Facebook, X, LinkedIn, Instagram, Bluesky and Threads.

MHA in the News

The Detroit News published a story Jan. 29 on two recent House Appropriations Committee hearings on the distribution of RHTP funds. The article details concern from House lawmakers and rural providers …

New MHA Infographic Provides Overview of RHTP Program in Michigan

The MHA recently released a new infographic that provides an overview of the Rural Health Transformation Program (RHTP) in Michigan. This infographic highlights the scope of the program, Michigan’s rural health landscape and the $173 million awarded to the Michigan Department of Health and Human Services (MDHHS) to support rural health initiatives across the state.  

The infographic also provides demographic and access-related data to help contextualize the need for targeted rural health investment, including information on rural population distribution, Medicaid coverage, distance to care, workforce shortages and the reliance of rural communities on local hospitals as critical access points. 

Timely updates, resources and additional information about the program are available on the MHA RHTP webpage. Members with questions may contact the MHA policy team. 

MHA Trustee Webinar Outlines Information and Planning for the OBBBA

The MHA will host the webinar Understanding the One Big Beautiful Bill Act (OBBBA) and Board Planning for the Impact, from 8 to 9 a.m. ET Sept. 24. The session will explore how the OBBBA would enact nearly $1 trillion in cuts to the Medicaid program, potentially reducing access to care across the country.

The webinar will cover several board-level considerations, including:

  • The Medicaid provisions within the OBBBA, such as state budgeting reductions, state-directed payments and Medicaid work requirements.
  • The Rural Health Transformation Program and eligible funding activities.
  • Strategies for positive messaging and healthcare policy advocacy.

Hospital board of trustees and other healthcare leaders are encouraged to register. The webinar is free of charge to MHA members.

Questions about MHA membership or registration should be directed to Brenda Carr at the MHA.