Tag: healthcare workforce

MHA Monday Report April 20, 2026

Member News, Monday Report

House Budget Proposal Advances; Other Hospital Bills See Action

Several healthcare bills, including mandatory nurse overtime, medical debt collections, prescribed pediatric extended care facilities and the Michigan Department of Health and Human Services budget, saw action in the legislature during the week of April 13. The Michigan Senate voted in support …

MHA Unemployment Compensation Program Receives Fifth Consecutive Award for Outstanding Performance

The MHA Unemployment Compensation Program was recognized by the National Association of State Workforce Agencies April 17 for its continued commitment to using the State Information Data Exchange System to receive new claims and respond to …

Trinity Health Michigan Team Members Recognized with MHA Keystone Center Speak-up! Award

The MHA Keystone Center recognized Camryn Smith and Alicia Evans, medical assistants at Trinity Health IHA Medical Group, as its quarterly MHA Keystone Center Speak-up! Award recipients. The Speak-up! Award …

MDHHS Convenes Statewide RHTP Advisory Council

The Michigan Department of Health and Human Services (MDHHS) convened the first Rural Health Transformation Program (RHTP) Advisory Council meeting on April 13. Three rural hospital leaders from MHA-member hospitals serve on the council: Julie …

CMS Releases FY 2027 Hospital Inpatient Prospective Payment System Proposed Rule

The Centers for Medicare & Medicaid Services (CMS) recently released a proposed rule to update the Medicare fee-for-service inpatient prospective payment system for fiscal year (FY) 2027. Highlights of the proposed rule include: …

LARA to Host Webinar on Proposed Psychiatric Hospital Licensing Rule Changes

The Michigan Department of Licensing and Regulatory Affairs (LARA), through its Bureau of Community Health Systems, will host a webinar from 3 to 3:30 p.m., May 7, to review proposed updates to administrative rules …

MEJI Seeks Input on Guardianship Training Initiative

The Michigan Elder Justice Initiative (MEJI) is seeking feedback from members to help shape upcoming guardianship training. Members are encouraged to complete a brief survey to share input on what is needed, how it should …

Upcoming Opportunities to Prioritize Workplace Safety

As MHA CEO Brian Peters stated in his April CEO Report, it’s critical – especially during Workplace Violence Prevention Month – to prioritize the safety and well-being of healthcare workers. The MHA Keystone Center and …

Hospitals Help: Bronson Drives Change in Maternal and Infant Health

From prenatal care and labor and delivery to neonatal intensive care and postpartum follow-up, Bronson Healthcare plays a critical role in influencing health outcomes for mothers and babies across Southwest Michigan. In celebrating a historic …

Keckley Report

The AHA Annual Membership Meeting: Three Issues that Require Attention

“This weekend, the American Hospital Association will convene its 2026 Annual Membership Meeting in DC. Its purpose is to equip leaders to engage with lawmakers and government officials on issues of consequence to hospitals.

The agenda includes panels on age-friendly health systems, post-acute services, AI and more, interspersed with punditry from members of Congress and political commentators. It’s a federally-focused meeting at a time when the current administration has signaled distaste for healthcare and frustrations with hospitals. …

Key questions for hospitals: What does value mean in our organization? To whom is our value focus directed? Is quality in our organization an end in itself or a means to a financial result? Is participation in VBC projects helpful to our organization or is watchful waiting prudent?

The American Hospital Association, its state affiliates and its members face unprecedented challenges in 2026 and beyond. While attention is focused on short-term rules and regulations that protect hospital revenues (340B, site neutral payments, Medicaid cuts, et al), equal consideration is needed to the long-term role and scope of hospitals in emergent systems of health. That makes the AHA Board’s selection of retiring CEO Rick Pollock’s successor and the deliberation of the AHA Board about the long-term future for hospitals even more consequential.”

Paul Keckley, April 12, 2026

New to Know

News to Know

  • Applications are being accepted for the 2026-27 MHA Excellence in Governance Fellowship for hospital and health system trustees.
  • MHA Endorsed Business Partner SmarterDx is hosting the webinar “Making the Case for AI-Powered CDI” May 7 at 1 p.m. ET in partnership with ACDIS.

MHA in the News

Recent coverage of the Michigan Senate’s April 15 action on mandatory nurse overtime highlighted the MHA’s active engagement in ensuring hospital concerns were reflected in the final package. MHA Chief Nursing Officer Amy Brown was …

MHA Monday Report April 13, 2026

Member News, Monday Report

Michigan Health & Hospital Association Establishes MHA Center of Rural Excellence

The Michigan Health & Hospital Association (MHA) announced April 10 the establishment of the MHA Center of Rural Excellence, a 501(c)(6) organization created to formalize and strengthen the collective voice of rural hospitals through support tailored …

State Senate Majority Leader Winnie Brinks Addresses MHA Board

The MHA Board of Trustees welcomed Senate Majority Leader Winnie Brinks (D-Grand Rapids) as a guest speaker at its April 8 board meeting at the MHA Capitol Advocacy Center in downtown Lansing. Sen. Brinks shared …

CMS Releases FY 2027 Proposed Rules Across Care Settings

The Centers for Medicare & Medicaid Services (CMS) recently released several proposed rules for fiscal year (FY) 2027 that update Medicare payment systems and quality reporting requirements.

MDHHS Recommends Early Measles Vaccination in Select Counties and Extends RSV Immunization Season

The Michigan Department of Health and Human Services (MDHHS) is recommending early measles vaccination for infants in select southeast Michigan counties and extending the respiratory syncytial virus (RSV) immunization season through April 30, in …

Keystone Quality and Safety Dashboard Provides At-a-Glance Insights

The MHA Keystone Center recently rolled out its Quality and Safety Dashboard, a resource that helps Michigan hospitals monitor performance, identify improvement opportunities and reduce patient harm. The dashboard provides an at-a-glance view of performance …

MHA Submits Comments on Proposed Behavioral Health Medicaid Policy

The MHA recently submitted comments to the Michigan Department of Health and Human Services on proposed policy 2553-BH, which addresses reimbursement for specialty behavioral health services based on service location. While the policy largely reflects …

Council Workgroups Advance Care Delivery Strategies

The MHA Council on Health Access and Community Impact, established in June 2024, brings together voices from across the MHA membership to advance a shared commitment to improving healthcare and health outcomes. Over the past …

MDHHS Seeks Applications for Loan Repayment Program to Expand Substance Use Disorder Treatment

The MDHHS is accepting applications through April 30 for the Michigan Opioid Treatment Access Loan Repayment Program, which supports providers who offer or expand access to opioid addiction …

YesRx Donation Drive Expands Access to Cancer Medications

The MHA continues to support the YesRx statewide cancer medication donation drive, taking place April 20-24, to help expand access to treatment and reduce medication waste across Michigan. YesRx is a statewide cancer drug repository …

Hospitals Help: Hillsdale Works to Improve Access for Rural Residents

Rural hospitals are the heart of their communities, providing care close to home in addition to jobs, stability and reassurance that help is nearby in life’s most pivotal moments. Despite their essential role, rural providers …

Keckley Report

In OMB’s FY 2027 Proposed Budget, Healthcare is the Big Loser

“In 1970 before there was ESPN Sports Center, there was ABC’s “Wide World of Sports” and its iconic montage opening featuring a disastrous ski jump attempt by Yugoslavia’s Vinko Bogataj and Jim Kay’s voice-over “the thrill of victory and agony of defeat.” It’s an apt framework for consideration of current affairs in the U.S. today and an appropriate juxtaposition for consideration the winners and losers in the White House Office of Management and Budget FY2027 released Friday. …

In its current form, this budget is unlikely to be enacted October 1, 2026: it’s best viewed as a signal from the White House about priorities it deems most important to the MAGA faithful in Congress, 28 state legislatures and 26 Governors’ offices controlled by Republicans. Though its explosive growth in of War Department funding to $1.5 trillion is eye-popping, cuts to healthcare are equally notable. Both are calculated bets as the mid-term election draws near (six months) and clearly OMB is betting healthcare cuts will be acceptable to its base. …

This budget proposal clearly illustrates why state legislators and Governors will play a bigger role in its future at home and abroad. And it means consumer (voter) awareness and understanding on key issues will be key to the system’s future, lest it is remembered for the agony of its defeat than the thrill of its victory.”

Paul Keckley, April 6, 2026

New to KnowNews to Know

The MHA will host a Health Access and Community Impact Office Hours session April 29 from noon to 12:45 p.m. ET, featuring Michigan 211.

MHA in the News

Elizabeth Kutter, vice president and deputy general counsel, MHA, joined Paul W. Smith for a WJR Spotlight interview April 9 about the value the federal 340B Drug Pricing Program brings to Michigan communities. The conversation …

MHA Monday Report April 6, 2026

Member News, Monday Report

MHA EventsHospital HR Professionals Gather at MHA Human Resources Conference

The MHA welcomed human resources leaders from across the state for the 2026 MHA Human Resources Conference March 24 in Lansing. Attendees gathered for a day of learning, networking and discussions focused on the workforce …

CMS Issues Guidance on Updated Federal Dietary Guidelines

The Centers for Medicare & Medicaid Services (CMS) recently released a Quality & Safety Special Alert Memo reminding critical access hospital providers of their responsibilities for patient food and nutrition services under existing …

MHA Annual Membership Meeting Strengthens Statewide Collaboration

The MHA Annual Membership Meeting will be held June 24-26 on Mackinac Island. It will include education sessions that deliver tactics and perspectives to shape the future, recognition of prestigious individuals leading transformation and numerous …

Excellence in Governance Fellowship Offers Meaningful Dialogue Among Trustees and Experts

Applications are now being accepted for the 2026-27 cohort of the MHA Excellence in Governance Fellowship, a rigorous and comprehensive program delivering tools and knowledge in effective governance. Hospital and health system governing board members …

Hospitals Help: Kalkaska Memorial Walks Beside Patients at Discharge

Patients often feel most vulnerable during the transition from hospital to home – especially if questions linger, follow-up care is extensive or there’s any risk of complications. Knowing this, hospitals are finding ways to ensure …

MHA Rounds image of Brian PetersMHA CEO Report — Violence Is Not Part of the Job

Healthcare workers accept extraordinary responsibility in their role as caregivers for their community, but fearing for their own safety is never something they should have to accept as part of the job. …

March Recap

March was marked by a strong focus on National Nutrition Month, highlighting how hospitals are advancing Food as Medicine efforts across Michigan. The following articles recap key conversations and initiatives supporting improved health outcomes through nutrition.

Food as Medicine: How Trinity Health Is Advancing Health Through Nutrition

Food is Medicine. Health by Food. ProduceRx. The integration of healthy food into healthcare is gaining attention under many names, but the message remains the same: access to healthy foods as a part of care. …

Health Access & Community Impact Council Focuses on Food as Medicine

The MHA Health Access & Community Impact Council convened virtually March 5 to discuss strategies to improve health outcomes through stronger integration of social and clinical care. In recognition of National Nutrition Month, members also explored …

Hospitals Expand Food Access Through Community Benefit Collaboratives

As many observe National Nutrition Month, hospitals across the state are implementing programs to address chronic disease through nutrition education and expanded food access. This work is being done through the MHA Community Benefit Collaboratives, which support efforts to improve Michiganders’ health outcomes in …

Keckley Report

Reality Check: the New Healthcare Advisory Committee

“Last week, Secretary of Health and Human Services (HHS) Robert Kennedy and Centers for Medicare and Medicaid Services (CMS) Director Mehmet Oz announced appointments to the new Healthcare Advisory Committee (HAC).

Its 18 members were selected from 400 nominees and will serve two-year terms. The group includes 4 health system executives, 5 physician leaders, 4 policy analysts, 3 ‘others’ (including motivational speaker Tony Robbins) and 2 Ex Officio (Non‑Voting) Members (Kimberly Brandt, JD — CMS Deputy Administrator & COO Stephanie Carlton, CMS Chief of Staff). …

The U.S. health system is in chaos. Its long-term destination is unknown. It’s near-term is mired in political brinksmanship and discontent about its costs and affordability. It is unhealthy. Majorities in both parties, and independent voters think the system is broken but few know what a viable alternative might be. Lost but making record time!!!”

Paul Keckley, March 29, 2026

New to KnowNews to Know

  • MHA Endorsed Business Partner i2G Systems is hosting the webinar Pathway to Prevention April 22 from 11 a.m. to noon ET.
  • The American Hospital Association (AHA) is accepting applications for the 2027 AHA Foster G. McGaw Prize.

MHA in the News

The MHA received media coverage during the week of March 30 following Executive Vice President of Government Relations and Public Policy Laura Appel’s participation in two panels focused on key healthcare challenges and opportunities. WZMQ …

MHA Monday Report March 30, 2026

Member News, Monday Report

Governor Whitmer Signs Interstate Medical Licensure Compact Bill

Gov. Whitmer signed House Bill 5455, now Public Act 6 of 2026, into law March 26. This came ahead of the deadline for the state to continue participation in the Interstate Medical Licensure Compact without …

Clinical Laboratory Fee Schedule Data Reporting Period Opens May 1

The Consolidated Appropriations Act of 2026, signed into law Feb. 3, includes updates to the Medicare Clinical Laboratory Fee Schedule under the Protecting Access to Medicare Act. These updates include a data …

MDHHS Finalizes Medicaid Policy Updates to Mental Health Framework

The Michigan Department of Health and Human Services (MDHHS) recently finalized Medicaid policy updates to the Michigan Mental Health Framework. It reflects several changes from the proposed version related to assessment use, timing and provider eligibility. …

Continuum of Care Consortium Seeks Member Participation

The Michigan Department of Licensing and Regulatory Affairs Bureau of Survey and Certification is organizing a Continuum of Care Consortium. This group is designed to bring together hospital and long-term care providers …

Stryker Issues Cyber Incident Response Certification Letter

Following a recent cyberattack at Stryker Corporation, the company issued a Stryker Cyber Incident Response Certification Letter on March 16 to update its customers on the ongoing situation. The letter includes information on product safety, communication with Stryker sales …

Hospitals Help: McLaren Launches AI Tool to Identify Heart Disease Risk Sooner

Michigan hospitals are finding innovative ways to improve patient outcomes and remove barriers to timely care. One example of this comes from McLaren Health Care and its McLaren Heart & Vascular Institute, who recently launched …

Keckley Report

It’s March Madness for Hospitals

“Hospitals represent 31% of total health spending in the U.S. They directly employ 52% of the nation’s 1.1 million physicians and 44% of the 18 million in the healthcare workforce. Many operate ‘related’ businesses including insurance companies, nursing home and long-term care services, fitness facilities and some are investors in private equity funds and joint ventures pursuing innovations in care delivery and more. …

For hospitals, this is March Madness! Strategies to manage demand, reduce costs and leverage favorable operating margins (enjoyed by some) need refreshing because the environment has fundamentally changed. Governing boards and C suites in hospitals face some tough questions about how, and how fast their environment will change. The Big C’s (Costs, Corporatization, Competition, Compliance, Capital, Coverage) are a useful place to start…

These are not comprehensive but they’re directionally accurate: the future for hospitals is not a repeat of the past. The market has fundamentally changed.

The blame and shame game played by the industry’s major sectors—hospitals, insurers, drug companies—has not made life better for the citizens it serves. The public’s asking for something better, and elected officials are on their side.

March Madness is reality for hospitals. It requires fresh thinking and uncomfortable adjustments. It’s not optional.”

Paul Keckley, March 22, 2026

New to KnowNews to Know

The MHA membership will convene in person for the MHA Annual Membership Meeting June 24–26. The annual meeting will feature an outstanding lineup of experts discussing key topics, including public perception and affordability. Members are encouraged to register by …

MHA in the News

The MHA received media coverage during the week of March 23 on key issues affecting access to care and the healthcare workforce. MLive, Gongwer and the Michigan Advance reported on the bipartisan agreement to extend …

Healthcare Bills Advance in Michigan Legislature

Member News

Several healthcare-related bills advanced in the Michigan Legislature during the week of March 2, including proposals addressing medical debt, liability protections, organ donation incentives and workforce shortages.

The Senate Finance Committee advanced Senate Bills (SB) 701 and 702 on March 4. These bipartisan bills, sponsored by Sen. Sarah Anthony (D-Lansing) and Sen. Jonathan Lindsey (R-Coldwater), aim to change medical debt collection processes in the state, including restrictions on the sale of medical debt and limits on interest, among other provisions. The MHA continues to review and remains committed to engaging with legislators on opportunities to improve healthcare affordability. The bills now proceed to the full Senate for further consideration.

Also on March 4, the House Judiciary Committee approved House Bill (HB) 4582, which would restore the “open and obvious” defense for lawsuits. Sponsored by Rep. Jerry Neyer (R-Shepherd), the committee adopted a substitute that clarifies that property owners still have a duty to protect individuals from unreasonable harm. The MHA supports the legislation that moves to the full House for further consideration. 

The Senate Health Policy Committee unanimously approved SB 301 on March 4. Sponsored by Sen. Joe Bellino (R-Monroe), the MHA-supported legislation would provide a tax credit to employers whose employees take time off to serve as living organ donors. The bill now goes to the full Senate for consideration.

The House Health Policy Committee took testimony March 4 on HB 4832, sponsored by Rep. Dave Prestin (R-Cedar River). The legislation would create a state licensure process for anesthesiologist assistants to address state healthcare professional workforce shortages further. The MHA supports the legislation and encourages the committee to vote in favor of its passage.

Members with questions may contact the MHA advocacy team.

MHA Opposes Federal Student Loan Proposal Affecting Healthcare Workforce

Member News

The MHA recently submitted a comment letter opposing the U.S. Department of Education’s proposed rule that would change how certain graduate health programs qualify for federal student loan programs under H.R. 1.

The proposal would revise the definition of “professional student” and “professional degree” under 34 CFR 685.102, limiting enhanced federal borrowing eligibility to certain doctoral-level programs. The MHA raised concerns that the proposal does not reflect the structure of today’s healthcare workforce and could worsen existing provider shortages.

Hospitals across Michigan rely on a range of licensed health professionals, including licensed clinical social workers, professional counselors, advanced practice nurses, registered nurses and physician assistants. Many of these providers complete accredited programs, meet clinical training requirements and obtain state licenses. However, several of these programs would not qualify as “professional” under the proposed rule.

The MHA cautioned that restricting loan eligibility for these programs could discourage students from entering fields already facing workforce shortages. Nearly all rural Michigan counties are designated as Health Professional Shortage Areas for primary care and behavioral health, and many hospitals rely on master’s-level clinicians to maintain access to care.

The MHA urged the Department of Education to adopt a broader definition that reflects accreditation and licensure standards. The MHA will continue monitoring the rulemaking process and share updates with members as they become available.

Members with questions may contact Lenise Freeman at the MHA.

MHA Monday Report Feb. 2, 2026

Member News, Monday Report

State Legislative Weekly Recap: House Appropriations Committee Continues RHTP Testimony

The Michigan House Appropriations Committee continued testimony during the week of Jan. 26 on federal funding awarded through the Rural Health Transformation Program (RHTP) and on legislation related to the 340B program and next-of-kin designations. …

MHA Events2026 MHA Human Resources Conference Registration Open

The 2026 MHA Human Resources Conference, scheduled for March 24 at the Crowne Plaza Lansing, will convene human resources leaders and professionals who are shaping the future of the healthcare workforce. In an evolving healthcare …

MHA Shares Recent Medicare and Medicaid Enrollment Analysis

The MHA recently updated its analysis of Medicaid and Medicare enrollment based on December 2025 data. The analysis includes program enrollment as a percentage of each county’s total population and the split between fee-for-service …

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

The American Academy of Pediatrics recently published its 2026 immunization schedule for children and adolescents, recommending protection against 18 diseases including polio, measles, respiratory syncytial virus and meningococcal disease. This comprehensive schedule draws …

Deadline Approaching for MHA Healthcare Leadership Academy

The enrollment deadline for the MHA Healthcare Leadership Academy is Feb. 6. The cohort meets Feb. 25-27 and May 7-8 at the MHA headquarters in Okemos. The Healthcare Leadership Academy, in partnership with Executive Core, has …

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

Healthy Futures is a free family support program that helps answer questions and assists families in finding services and resources in the community. The program, which has no eligibility requirements, is a collaboration between Munson …

MHA Rounds graphic of Brian PetersMHA CEO Report — The Reality Behind a Hospital Ribbon-Cutting

Hospital ribbon-cutting ceremonies tend to spotlight the new and modern elements of a hospital expansion: bright windows, sleek patient rooms or advanced diagnostic technology. But what you don’t see is often more important than what …

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 …

Peters Participates in Media Roundtable on Economic Impact of Public Universities

Member News

MHA CEO Brian Peters joined the Michigan Association of State Universities Jan. 13 in a media roundtable to discuss the economic impact of Michigan’s public universities, which generate nearly $45 billion in net new economic activity a year.

Peters reinforced how higher education institutions are essential partners in building the healthcare workforce and preparing graduates for the rapidly evolving demands of healthcare delivery.

Healthcare employs more Michiganders than any other sector, with hospitals alone employing more than 222,000 Michiganders and supporting a vast numbers of jobs in communities large and small.

The round table garnered media coverage across the state. Peters and the MHA were mentioned in stories published by the Lansing State Journal, Michigan Advance, WSBT, WWMT and Yahoo News.

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

MHA Hosts Conversation on Strengthening Michigan’s Healthcare Workforce

Member News
MHA Events
Attendees during the MHA Healthcare Careers Conversation event on Oct. 16.

The MHA convened more than 90 individuals on Oct. 16 for a Healthcare Careers Conversation event. Human resources professionals, clinical leaders, education and workforce partners gathered to explore ideas for growing the healthcare pipeline.

As part of its ongoing commitment to supporting the healthcare workforce, the event featured presentations from the Michigan Health Council, which shared key research findings, and the Michigan Department of Education – Office of Career and Technical Education, which provided a deep dive into the Michigan Career Development Model and offered insights on helping students maximize financial aid opportunities.

Michigan employers are also reminded that applications are open for the Going PRO Talent Fund, a state grant program that helps businesses train and upskill current or new employees. The first application window opened Oct. 14 and closes at 5 p.m. ET on Thursday, Oct. 30.

The MHA thanks event sponsors Clasp and Skilltrade for their generous support of this event.

To learn more about Clasp, MHA members are encouraged to register for the webinar How Leading Health Systems Are Rebuilding Talent Pipelines — and Keeping Them Full Through Early Student Loan Support scheduled from 8:30 to 9 a.m. Nov. 18. This webinar will explore:

  • How recent student loan policy changes may impact students and schools and what health systems can do now to get ahead.
  • Actionable strategies for implementing education-to-career pathways and alternative incentives that drive attraction and retention.
  • Case studies on how leading systems are securing top talent through long-term investment, reducing turnover and lowering reliance on contract labor.

Members with questions may contact Erica Leyko at the MHA.

New PwC Report Warns of Rising Hospital Costs and Mounting Financial Pressure on U.S. Healthcare System

Issues in Healthcare, News Releases, Top Issues - Healthcare

The Michigan Health & Hospital Association (MHA) is drawing attention to a new national report from PricewaterhouseCoopers (PwC) that outlines the severe financial challenges facing hospitals across the country that could soon jeopardize patient care if urgent policy action is not taken.

The report, Inflator: Hospital Costs, from Wages to Hospital Gowns, highlights the mounting pressures on hospitals due to surging costs, workforce shortages and skyrocketing demand for behavioral health services, all while proposed tax cuts and Medicaid funding reductions threaten to widen the gap between costs and revenue.

“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.”

Key findings from the PwC report include:

  • Hospital margins have plummeted, dropping from an average of 7% in 2019 to just 2.1% in 2024, with additional declines reported in early 2025.
  • Drug spending surged by $50 billion (11.4%) in 2024, more than double the increase seen in 2023, largely driven by high-cost therapeutics in chronic disease areas like oncology, obesity and diabetes.
  • Behavioral health claims soared, with inpatient claims increasing by 80% and outpatient claims by 40% over a two-year span, reflecting the intensifying behavioral health crisis.
  • Tariffs and supply chain challenges continue to drive up the cost of everyday medical supplies, compounding inflationary pressures.
  • Medicaid cuts and federal tax policies could force the closure of service lines at facilities that rely heavily on government payers, impacting access to care for all residents.

The report also outlines how hospitals are working to offset financial pressures by investing in revenue cycle improvements and value-based payment models. Still, the report emphasizes that system-wide stability will require collaboration between payers, providers, policymakers and employers, especially as rural hospitals face ongoing threats of closure.

The MHA is supporting Michigan hospitals facing these mounting challenges through the following actions:

  • Advocating to preserve and strengthen the federal 340B program, which enables hospitals to purchase outpatient medications at discounted rates, freeing up resources to serve low-income and uninsured patients.
  • Working with state policymakers to expand access to mental health and substance use treatment, reduce emergency department (ED) strain and support hospitals’ efforts to meet growing behavioral health needs. This includes Senate Bill 806, which expands the three-hour assessment responsibility by allowing clinically-qualified staff to conduct pre-admission screenings for behavioral health patients seeking care in the ED.
  • Leading efforts to expand the healthcare workforce pipeline through partnerships with post-secondary educators, awareness campaigns and recruitment and retention initiatives to help hospitals manage staffing costs while maintaining high-quality care.
  • Working to add Michigan to the Nurse Licensure Compact, allowing nurses to practice across state lines without the burden of obtaining additional licenses.
  • Advocating against Medicaid cuts and pushing for reimbursement rates that reflect the true cost of care, especially for safety net and rural hospitals that disproportionately rely on public payers.

The full report is available on the PwC website.