Michigan Hospitals Invested $784 Million in Community and Voluntary-based Activities to Improve Health, Well-being of Residents

New report outlines hospital community health efforts in FY 2021 

The Michigan Health & Hospital Association (MHA) released today the Making a Difference in Our Communities report that highlights how hospitals invested more than $784 million in community and voluntary-based activities in fiscal year (FY) 2021, from education and prevention services to community outreach, research and workforce development.

Data in the report shows investments made throughout the second year of the COVID-19 pandemic, demonstrating that despite the workforce challenges and financial burdens Michigan hospitals and health systems face, they continue to offer a wide range of services and resources to their communities beyond the traditional healthcare setting that improve the overall health, wellness and quality of life of residents.

“This report uplifts the profound impact Michigan hospitals, health systems and healthcare teams have on their communities,” said MHA CEO Brian Peters. “In addition to outlining the latest community benefit data, it provides specific examples showing how these investments are improving health outcomes, building community and supporting efforts around workforce restoration.”

The report features examples and testimonials from patients who benefit from the programs implemented by hospitals throughout Michigan, as well as providers. Many of these programs expand access to care, address healthcare workforce needs and improve the health of vulnerable populations.

“Our care teams at Trinity Health are driven by a mission of service and improving access to resources that help individuals and communities thrive,” said Shannon Striebich, MHA Board Chair and President and CEO of the Trinity Health Michigan Market. “Investing in behavioral health programming is just one example of what we do; I’m proud to see the work of our Western Wayne Suicide Prevention Coalition featured in the report among many other impactful community benefit stories.”

The full report and stories from hospitals across the state that exhibiting community benefit can be accessed online here.

MHA CEO Report — Michigan Hospitals: Benefitting Communities in Significant Ways

Life’s most persistent and urgent question is, ‘What are you doing for others?”  Martin Luther King, Jr.

Fall is officially upon us. At the MHA, that means a new program year is well underway, we have a new Strategic Action Plan in place and are preparing for the November election which is now just weeks away. This fall, we are also very proud to continue an annual tradition and publish two new reports documenting the critical role of our membership throughout the state: the 2022 Economic Impact of Healthcare in Michigan and the Healthy Futures, Health Communities community benefit report.

Fiscal year 2020 data (the most recently available) is shared in each report and it reinforces the position that hospitals are both economic drivers and community leaders. Healthcare remains the largest private sector employer in Michigan with nearly 572,000 total individuals directly employed, 224,000 of which are in hospitals. These direct healthcare workers earned $44.2 billion in wages, salaries and benefits and when combined with indirect, healthcare-supported jobs, contributed almost $15.2 billion in local, state and federal taxes. Hospitals provide mission-oriented work aimed at the health and wellness of their patients and communities, but the data is clear that hospitals clearly have a role in the economic health of our state as well.

We take our work towards improving community wellness seriously, which is demonstrated by the nearly $4.2 billion investment in community-based partnerships and programming. Hospitals invested more than $869 million in community and voluntary-based activities while providing $3.4 billion in uncompensated care. Hospitals are committed to not only caring for anyone who walks through their doors, but towards preventative care programs that can help reduce the need of inpatient hospital services. The costs of these efforts come directly out of a hospital’s bottom line but are vital towards ensuring vulnerable patients have the ability to receive needed care.

These reports are based on data from the first year of the pandemic. I do not have to tell you how trying and difficult those times were for hospitals. Despite the uncertainty and demand on hospitals and health systems during that time, they continued to support our communities in these important ways. Our healthcare system was stretched to new lengths, but we had over half a million individuals directly involved in providing care to patients. With a statewide population of 10 million, 40% of which are either under the age of 18 or aged 65 and older, healthcare either directly or indirectly employs over 18% of our workforce.

Yet the 2020 numbers also begin to provide evidence of the loss of healthcare workers that we anecdotally have shared for the last several years. For the first time in the history of the economic impact report, total direct jobs in Michigan from healthcare declined, including the loss of 7,000 jobs in hospitals. Despite those losses, total compensation for hospital workers remained the same, as contracted labor (e.g. those working for nurse staffing agencies) became a necessity for hospitals to maintain appropriate staffing levels.

But I do not want to lose sight of what the headline should be, and that is healthcare remains an economic engine and the largest private-sector employer in Michigan. At a time where every industry is struggling with having enough staff, healthcare remains a very significant employer. And the industry holds a tremendous amount of opportunity for new job growth moving forward: Michigan’s recent list of the top career fields with the highest projected growth is dominated by healthcare professions. Hospitals not only offer well-compensated careers with strong benefits, but in a rewarding field that truly makes a difference in the lives of our neighbors. Hospital careers also exist in communities large and small, helping to keep college graduates and young professionals in our state. Lastly, the skills of a healthcare professional are transferrable, regardless of region, and long-lasting. The training and education for a healthcare professional today will remain relevant over the next several decades.

Every year that goes by, hospitals seek to be more involved with individuals outside the walls of their facilities. They are helping to address the social determinants of health, including access to transportation and food insecurity. And they are intertwined in not only the individual health of community members, but in the success of local business and municipalities. Access to healthcare is at the top of any organization’s checklist wishing to expand their footprint into new markets. Our success depends on the success of community leaders and vice versa.

When we advocate for much-needed Medicaid and Medicare funding, for the 340B drug pricing program and for good health policy at the state and federal level, we do so because we know these are essential to maintaining access to quality healthcare in communities throughout Michigan. With the facts presented by our new reports on economic impact and community benefit, we believe there is more reason than ever for our elected officials – and all of us – to support our Michigan hospitals.

As always, I welcome your thoughts.

Michigan Hospitals Invested $4.2 Billion in Community Programming Mid-pandemic to Improve Health, Well-being of Residents

New report outlines hospital community health efforts in FY 2020

The Michigan Health & Hospital Association (MHA) released today the Healthy Futures, Healthy Communities report that demonstrates a nearly $4.2 billion investment in community-based partnerships and programming in fiscal year (FY) 2020. Overall, hospitals invested more than $869 million in community and voluntary-based activities, from education and prevention services to community outreach, research and workforce development.

Data in the report shows investments made throughout the first year of the COVID-19 pandemic, demonstrating Michigan’s hospitals and health systems continued offering a wide range of services and resources to their communities inside and outside of the traditional healthcare setting that improved the overall health, wellness and quality of life of residents.

“Even through some of the most challenging times in healthcare, hospitals and health systems haven’t wavered in their commitment to helping improve the overall health and wellness of the communities they serve,” said MHA CEO Brian Peters. “This report gives a clear and simple message: The impact of our healthcare workforce reaches far beyond the walls of patient rooms.”

In addition to community benefit services and programs, the report also highlights the contributions of hospitals when it comes to uncompensated care. In FY 2020, the unpaid costs of patient care at Michigan hospitals totaled more than $3.4 billion, which includes both financial assistance and bad debt at cost, as well as Medicaid and Medicare payment shortfalls, other means-tested government programs and subsidized health services.

“The programs​ and services that ​hospitals and health systems provide ​have ​a long-term and positive impact on community health,” said T. Anthony Denton, J.D., MHSA, senior vice president and chief operating officer of University of Michigan Hospitals, Health Centers and Medical Group and 2022-2023 Chair of the MHA Board of Trustees. “Patients and communities bec​ame more intertwined ​than ever as ​healthcare teams worked to provide care, compassion, financial and in-kind resources and knowledge throughout the COVID-19 pandemic and continue to do so. Our role as anchor institutions ​is and has always been vital, providing an important uplift to those in need by way of various contributions which demonstrate our value as a major community asset. Through our many efforts, we are privileged to build bridges and connect communities to inform, elevate and empower individuals and families to mitigate social determinants and advance health, inspire hope and foster meaningful presence.”

Included in the report are examples of programs implemented by hospitals throughout Michigan that expand access to care and improve the health of vulnerable populations within their communities.

“McLaren, as a large health system, serves large urban settings and smaller rural communities, and the critical charge of being a community-integrated provider is having a sound, community-based system of care in place,” said Dr. Justin Klamerus, McLaren Health Care chief medical officer. “Increasingly, health care is moving toward care that existed outside of the hospital, both in treatment and preventive practices. It’s part of our responsibility to attune ourselves to the needs of our communities, especially in critical access areas, and doubly so during a time when many may still be hesitant to seek care in a hospital setting. Our facilities in Bay, Caro and the Thumb Region are true in the commitment to their communities and are really working to meet their needs.”

The full report and stories from hospitals across the state that exhibiting community benefit can be accessed online here.