The Michigan House of Representatives voted 59-45 on Aug. 26 for a state budget that includes harmful cuts to hospital funding and healthcare measures.
This proposed budget includes:
- New language placing $2.5 billion of hospital provider-tax funded payments in contingency, requiring unnecessary administrative and legislative actions that could jeopardize timely hospital payments.
- Elimination of at least $100 million of funding from the Specialty Network Access Fee (SNAF), which provides reimbursement to support physicians caring for patients with Medicaid coverage.
- Elimination of $10 million to support the Maternal Levels of Care verification for birthing hospitals.
- No funding to support providers who have not been reimbursed by the Michigan Department of Corrections contractor Wellpath.
Furthermore, Michigan hospitals already stand to lose more than $6 billion over the next 10 years due to federal budget cuts. Further reducing funding that supports delivering healthcare services and the nurses, physicians and other staff employed by hospitals harms Michigan and its more than 10 million residents.
The MHA will continue to oppose all threats to hospital funding and work with the state legislature to advocate for a real budget by Sept. 30 that supports healthcare and the hospital workforce who serve Michigan communities.
Following the vote, the MHA issued a media statement from MHA CEO Brian Peters and an action alert encouraging members to contact legislators to protect hospital funding in Michigan.
Members with additional questions should contact the MHA advocacy team.