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 (MDHHS) budget, saw action in the legislature during the week of April 13.

The Michigan Senate voted in support of Senate Bills (SBs) 296 and 297, sponsored by Sen. Stephanie Chang (D-Detroit) and Sen. Ed McBroom (R-Vulcan), on April 15. This legislation would prohibit hospitals from using mandated overtime for registered nurses in certain circumstances. While the MHA does not support legislation that curtails hospital leaders’ decision-making authority, the MHA worked with bill sponsors and the Michigan Nurses Association to secure key amendments to provide hospitals time to implement potential changes, address extenuating circumstances and provide flexibility to nurses, while keeping patient access at the forefront. The legislation now heads to the House of Representatives for further consideration.

The House Health Policy Committee heard testimony on SB 449450 and 451, as well as House Bills (HB) 5254 and 5255. The bipartisan three-bill Senate package codifies the existence of hospital financial assistance programs (FAPs), creates new reporting requirements on the benefits provided by FAPs and prohibits medical debt from being reported by credit bureaus. The bills, sponsored by Sen. Sarah Anthony (D-Lansing) and Sen. Jonathan Lindsey (R-Coldwater), would:

  • Require hospitals to develop and implement a FAP that provides up to a 100% discount based on a sliding scale for an uninsured patient whose annual income is at or below 350% of the federal poverty guidelines. The FAP must also apply to patients who owe the hospital an unpaid bill equal to or greater than 30% of their annual income.
  • Require hospitals to post information about the FAP on bills, invoices and the hospital website.
  • Require hospitals to submit an annual report to the MDHHS stating the number of applications to the hospital’s FAP and the benefits provided by the FAP each year.
  • Require the state to create a process allowing hospitals to check patient income eligibility.
  • Prohibit consumer reporting agencies from including medical debt in consumer credit reports.

HBs 5254 and 5255, sponsored by Reps. Angela Rigas (R-Alto) and Laurie Pohutsky (D-Livonia), aim to change medical debt collection processes in the state, including restrictions on the sale of medical debt and on interest rates. The MHA maintains a neutral position on SBs 449-451.

The House Health Policy Committee also voted unanimously in support of HBs 5251 and 5252, which provide for the licensing and Medicaid coverage of prescribed pediatric extended care facilities. These facilities would allow specialized care for pediatric patients with complex medical conditions. The MHA continues to review this legislation.

Lastly, HB 5607, which funds the Medicaid and behavioral health portions of the MDHHS for fiscal year 2026-27, was reviewed and approved by its House Appropriations subcommittees on April 16. The bill supports important healthcare measures, including:

  • Full funding for Medicaid.
  • Recognition of hospital provider taxes and the ability to access those funds without additional legislative action or administrative barriers.
  • Specialty Network Access Fee funding.
  • Support for rural and obstetrics stabilization pools.
  • Funding for Maternal Levels of Care verification.
  • $22 million and additional state employees to implement Medicaid work reporting requirements as required by H.R. 1.
  • Language encouraging the state to allocate Rural Health Transformation funds in a timely manner.

The budget proposal also calls for $300 million in unspecified Medicaid savings.  The bill now goes to the full House Appropriations Committee for its consideration. The MHA will continue to work with lawmakers to pass a state budget that fully supports Michigan hospitals, healthcare workers and patients.

Members with questions may contact the MHA advocacy team.

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 Yaroch, DO, CEO, ProMedica Charles and Virginia Hickman Hospital; Jeremy Cannon, vice president, chief nursing officer, Kalkaska Memorial Hospital; and Robert Mach, MBA, FACHE, ARRT, CEO, Schoolcraft Memorial Hospital. Lauren LaPine-Ray, DrPH, MPH, vice president, policy & rural health, executive director, MHA Center of Rural Excellence, represents the association on the council.

The meeting opened with welcome remarks and introductions from MDHHS RHTP staff, followed by a high-level overview of the program and members’ orientation to the advisory council, including a review of its charter and governance structure to clarify roles, expectations and decision-making processes.

The remainder of the meeting focused on a facilitated virtual breakout session to define what success will look like for the advisory council in one year. The session concluded with the next steps and time for questions and reflections.

Members with questions may contact Lauren LaPine-Ray at the MHA.

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

The Michigan Department of Health and Human Services (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 treatment.

Eligible providers can receive between $15,000 and $30,000 toward student loan repayment. Medical and osteopathic doctors, psychiatrists, nurse practitioners, physician assistants, case managers and substance use disorder counselors are eligible to apply if they are offering or expanding opioid treatment services. Additional providers working in a variety of healthcare settings are also eligible to apply.

Funding is provided through the State of Michigan Opioid Healing and Recovery Fund, which was established through a nationwide settlement with pharmaceutical distributors. The state is expected to receive approximately $1.8 billion from the settlement by 2040, with funds distributed to the state and directly to county, city and township governments.

Applications are due April 30 and members can learn more on the MDHHS MIOTA webpage.

Members with questions may contact the MHA policy team.

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 current practice, the MHA identified several areas where additional clarity is needed related to allowable services and care settings.

Focus areas included:

  • Nursing Facilities: Clarification on whether additional services, such as group therapy, care coordination and medication review, would be allowable, as these services are currently included in other care settings.
  • Institutions for Mental Diseases (IMD): Clarification on the distinction in allowable length of stay between patients with serious mental illness and substance use disorder (SUD), as well as coverage parameters for SUD-related IMD stays.
  • Child Caring Institutions: Clarification on coverage limitations tied to facility licensure and patient diagnosis, particularly for children with serious emotional disturbance and intellectual and developmental disabilities.

The MHA will continue to monitor the policy and keep members informed of any updates.

Members with questions should contact Kelsey Ostergren at the MHA.

MHA Monday Report March 30, 2026

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 …

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, making several changes from the proposed version related to assessment use, timing and provider eligibility.

Reassessments may now be conducted based on clinical judgment without a defined “change in condition.”

Additional clarifications include:

  • Services may be delivered and reimbursed before an assessment is completed.
  • Individuals should be assessed when first presenting for services.
  • A new assessment is not required if one is already on file in the Community Health Automated Medicaid Processing System.
  • Preadmission screening and Prepaid Inpatient Health Plan processes remain unchanged.

The policy also introduces new guardrails around the use of standardized assessments. Assessments should not be conducted during a crisis and cannot be used to determine, limit or restrict the amount, scope or duration of services. These provisions were not included in the proposed policy and signal a shift toward clinical decision-making and patient access.

The update expands provider eligibility, allowing nonlicensed bachelor’s-level providers to conduct assessments.

In addition, the age criteria for the tools were updated. The Level of Care Utilization System now applies to individuals age 18 and older, while MichiCANS applies from birth through age 18.

Members with questions may contact Lenise Freeman at the MHA.

Medical Debt Legislation Clears Senate, MHA-Supported Bills Advance in the House

Legislation addressing medical debt collection processes and hospital financial assistance policies passed the Michigan Senate, while the House of Representatives moved MHA-supported bills during the week of March 9. 

The Senate voted in support of Senate Bills (SB) 449450 and 451 as well as SBs 701 and 702. The bipartisan three-bill package, SBs 449-451, codifies the existence of hospital financial assistance programs (FAPs), creates new reporting requirements on the benefits provided by FAPs and prohibits medical debt from being reported by credit bureaus. The bills, sponsored by Sen. Sarah Anthony (D-Lansing) and Sen. Jonathan Lindsey (R-Coldwater), require the following: 

  • Hospitals to develop and implement a FAP that provides up to a 100% discount based on a sliding scale for an uninsured patient whose annual income is at or below 350% of federal poverty guidelines. The FAP must also apply to patients who owe the hospital an unpaid bill greater than 30% of their annual income. 
  • Hospitals to post information about the FAP on bills, invoices and the hospital website. 
  • Hospitals to submit an annual report to the Michigan Department of Health and Human Services (MDHHS) stating the number of applications to the hospital’s FAP and the benefits provided by the FAP in a given year. 
  • The state to create a process allowing hospitals to check patient income eligibility. 
  • Prohibits consumer reporting agencies from including medical debt in consumer credit reports. 

Additionally, SBs 701-702 aim to change medical debt collection processes in the state, including restrictions on the sale of medical debt and limits on interest.  

Each bill was approved by the full Senate and has been referred to the House of Representatives for further review and consideration. The MHA secured several key amendments to the legislation and will continue engaging with lawmakers as the process continues. 

Additionally, the House of Representatives acted on several healthcare-related bills this week, including House Bill (HB) 4582SB 398, and HB 5281The full House voted 58-48 on HB 4582, sponsored by Rep. Jerry Neyer (R-Shepherd), which clarifies Michigan’s premises liability law. The bill has now been referred to the Senate for consideration. SB 398, sponsored by Sen. Joe Bellino (R-Monroe), modifies opioid treatment program requirements under the Department of Licensing and Regulatory Affairs, and was supported by the House Health Policy Committee.  The Behavioral Health Integration Council previously engaged with bill sponsors on SB 398 and other opioid use disorder bills, resulting in the MHA’s support. The House Judiciary Committee also took testimony on HB 5281. The bill, sponsored by Rep. Mike Harris (R-Waterford Township), would regulate third-party litigation funding transactions and require transparency measures. The MHA supports these bills and looks forward to their progress through the legislative process. 

Members with questions may contact the MHA advocacy team. 

MDHHS Seeks Proposals for Primary Substance Abuse Prevention Programs for Youth  

The Michigan Department of Health and Human Services (MDHHS) released a grant funding opportunity March 4 to provide support to organizations implementing primary substance use prevention programs for children and youth.   

The goal of this program is to support organizations to deliver primary prevention programs that prevent youth, ages 12 to 17, from partaking in alcohol, tobacco and other drugs. Some programming ideas include increasing access to extracurricular activities, helping youth develop decision-making skills and other protective factors.  

This funding opportunity is open to 501(c)(3) nonprofits, private and public entities, local health departments, federally recognized tribes, or an Urban Indian Health Clinic program and universities.  

Funding is provided through the State of Michigan Opioid Healing and Recovery Fund. These funds are from a nationwide settlement with pharmaceutical distributors. The state plans to receive $1.8 billion from the settlement by 2040. Funds plan to be distributed to the state and directly to county, city and township governments.  

Members are encouraged to join the pre-application conference scheduled for 9 a.m. on Monday, March 9.  

Applications are due by 3 p.m. April 2 via EGrAMS. More information about this funding opportunity can be found on the EGrAMS website under “Current Grants” then “Specialty Behavioral Health Services” and finally selecting the “PSUPS-2026” grant program.   

Members with questions may contact the MHA policy team. 

MDHHS Shares 2026 MICH Requirements Updates

The Michigan Department of Health and Human Services (MDHHS) recently released updated information for calendar year 2026 regarding coverage regions and participating plans for Mi Coordinated Health (MICH).

MICH is the state’s Highly Integrated Dual Eligible Special Needs Plan, which integrates Medicare and Medicaid benefits under a single managed care plan for eligible beneficiaries.

For 2026, MICH will continue operating in select Medicaid regions with county-level availability changes:

  • The Upper Peninsula Health Plan will not be available in Chippewa, Gogebic or Menominee counties in 2026.
  • In southwest Michigan, Molina will not be available in St. Joseph County. Participating plans in the region will include Aetna, Priority Health, UnitedHealthcare and Wellcare-Meridian.
  • In Wayne County, participating plans will include Aetna, AmeriHealth, HAP CareSource, Priority, Humana, Molina, UnitedHealthcare and Wellcare-Meridian.
  • In Macomb County, participating plans will include Aetna, AmeriHealth, HAP CareSource, Humana, Molina, Priority, UnitedHealthcare and Wellcare-Meridian.

Providers are encouraged to consult the MICH provider contact list for plan-specific contracting information. Beneficiaries seeking to enroll or disenroll must work directly with their assigned health plan or contact 1-800-MEDICARE.

Additional Resources

MDHHS has made several resources available for providers and beneficiaries, including:

Members with any questions may contact Lenise Freeman at the MHA

Registration Open for MDHHS Laboratory Leadership Summit

Registration is open for the Laboratory Leadership Summit, hosted March 26 in Lansing by the Michigan Department of Health & Human Services Bureau of Laboratories (MDHHS BOL).

MHA members are encouraged to register and attend this one-day summit. Participation is recommended for clinical laboratory directors, administrators and senior laboratory leadership from hospital and health systems.

The summit will convene clinical and public health laboratory leaders from across the state. The agenda includes an overview of MDHHS BOL responsibilities, strategies to strengthen outbreak response and surge testing coordination between clinical and public health partners and a discussion on aligning MDHHS public health laboratory testing with the needs of clinical laboratories.

Attendees who require a hotel room, provided at no cost by MDHHS BOL, must submit the request through the registration form by Feb. 26.

Members with questions should contact Kelsey Ostergren at the MHA.