“We can’t become what we need to be by remaining what we are.” — Oprah Winfrey
Michiganders heard a clear message from our state and federal leaders last week: healthcare is too expensive and the system is flawed. We agree. Michigan hospitals are deeply invested in providing timely and accessible care, reducing unnecessary administrative burden and improving transparency.
The healthcare landscape in our country is incredibly complex, so it’s imperative to recognize no single action or one-size-fits all approach will create the substantial change we need. For decades, good-faith, reactive polices have attempted to manufacture financial stability for patients and providers by addressing immediate cost pressures, but this approach has only delayed the inevitable conversations we must have about healthcare affordability and sustainability.
Michigan hospitals continue to experience reimbursement rates that fall far below the cost of providing care and our patient population is simultaneously growing older and sicker. Hospitals are continually being asked to do more with less, but even their most innovative efficiency efforts cannot overcome reimbursement that lags far behind the growing cost and complexity of patient care. For example, general inflation rose by 14.1% from 2022 to 2024, while Medicare net inpatient payment rates increased by only 5.1% during the same time period. Access to important healthcare services is at risk when providers are reimbursed at less than the cost of care.
We’re eager to discuss long-term solutions with employers, lawmakers and other healthcare stakeholders, but we cannot address these systemic issues from our back foot. Labor, drug and supply costs are forcing hospitals, especially those in rural areas of the state, to limit services. Maintaining healthcare funding is about protecting access to care in communities across Michigan and not about preserving the status quo.
To create a more affordable system, we need one that is strong enough to withstand change. If we can pair reform and sustainability actions, we can strengthen care and lower costs for everyone long-term.
As always, I welcome your thoughts.