The MHA provided testimony April 30 to the House Appropriations Committee about healthcare services provided to prisoners by Michigan hospitals that have not been reimbursed by Wellpath, a third-party private vendor.
The House Appropriations Committee heard from several key stakeholders, including the MHA, on issues related to Wellpath and their failure to reimburse hospitals and EMS providers for delivering healthcare services to prisoners. Adam Carlson, senior vice president, Advocacy, discussed how hospitals are required by federal EMTALA law to provide healthcare to any person who seeks care, regardless of insurance status or residency – including the prisoner population in the state of Michigan. Further, it was shared that hospitals provided more than $35 million in healthcare services to prisoners from January 2022 through May 2024 that have not been reimbursed from Wellpath, and that the vendor has since filed for bankruptcy.
Helen Johnson, CEO, Helen Newberry Joy Hospital, followed with her testimony and shared a unique example of how her hospital serves 6,000 residents and 1,100 prisoners in the region, indicating that nearly one-sixth of the hospital’s patient mix are from the nearby correctional facility. As a result, she explained that Helen Newberry Joy Hospital is still owed $800,000 from Wellpath, which represents wages for approximately 25% of the hospital’s nursing staff. This is only one example of several from member hospitals currently experiencing this financial issue with the previously contracted third-party vendor. The MHA will continue efforts to strongly advocate for a state supplemental appropriation of $35 million to offset outstanding payments owed to all member hospitals from Wellpath.
Multiple compact bills supported by the MHA also received a hearing in the new House Rules Committee, which evaluates legislation before it is considered for a full House chamber vote. House Bill 4103, sponsored by Rep. Julie Rogers (D-Kalamazoo), would add Michigan to the occupational therapist licensure compact agreement. Additionally, House Bill 4309, sponsored by Rep. Dave Prestin (R-Cedar River), would create a licensure compact for physician’s assistants in the state. The MHA will continue to support these bills as they move forward in the legislative process.
Also, the Senate MDHHS Appropriations Subcommittee reported its budget recommendation for fiscal year 25-26. Key MHA priorities were protected, including funding for Medicaid, the rural and obstetrical stabilization pools, peer recovery coaches and maternal health. The MHA will continue to support these funding proposals and advocate for more resources dedicated to behavioral health and access.
Members with questions should contact Elizabeth Kutter at the MHA.
