Auto No-Fault Legislation Highlights Healthcare Activity in Michigan Legislature

capitol building

capitol buildingSenate Bills (SBs) 530 and 531 were introduced Sept. 26 by Sen. Mary Cavanagh (D-Redford Twp.) and Sen. Sarah Anthony (D-Lansing) that would adjust the hospital fee schedule, clarify the definition of Medicare and provide rate certainty for post-acute care providers. Specifically, the legislation would eliminate the various rate tiers for reimbursement and coalesce hospitals around the national median reimbursement rate of 250% of Medicare. Additionally, the legislation clarifies the definition of Medicare based upon actual reimbursement experience at hospitals. The MHA issued a media statement in support of the legislation, which also creates fee schedules for post-acute care providers and adjusts the provisions related to attendant care. The legislation is referred to the Senate Insurance Committee and the MHA will keep members updated on its progress.

The legislature continued its breakneck pace this week with numerous healthcare bills seeing both committee action.

The Senate Finance, Insurance and Consumer Protection Committee voted out SBs 483, 484 and 485 sponsored by Sen. Darrin Camilleri (D-Trenton), Sen. Veronica Klinefelt (D-Eastpointe) and Sen. Kristen McDonald Rivet (D-Bay City). The legislation, creating the Prescription Drug Affordability Board, was reported along party lines with Senator Mark Huizenga (R-Walker) passing based on a potential conflict of interest. The MHA continues to work with the sponsors, stakeholder, and leadership on this legislation to ensure it accurately reflects the important role hospitals serve as purchasers and administrators of prescription drugs. The MHA is opposed to the package as it is currently written.

The Senate Health Policy Committee took up SB 133, sponsored by Sen. Sean McCann (D-Kalamazoo), which creates the Overdose Fatality Review Act. The act would allow for the establishment of overdose fatality review teams to identify potential causes of drug overdoses, as well as recommend solutions to address drug overdoses. The MHA successfully recommended changes to reflect more appropriate information sharing practices and timelines and supports this legislation. In addition, the committee reported out House Bills (HBs) 4619, 4620, 4621, 4622 and 4623, codifying aspects of the Affordable Care Act in state law. The MHA supports this work.

The House Insurance and Financial Services Committee took up several of the Affordable Care Act codification bills including SBs 356, 357 and 358 sponsored by Sen. Kevin Hertel (D-St. Clair Shores), Sen. Mary Cavanagh (D-Redford Twp.) and Sen. Veronica Klinefelt (D-Eastpointe). Both SBs 356 and 357 failed to garner enough votes in committee to be voted out of committee. SB 358 was reported to the House Floor. The MHA supports this legislation and looks forward to seeing the remaining bills reported favorably to the House floor next week.

Finally, the House Health Policy Committee took testimony on two pieces of MHA supported legislation. HB 4101, sponsored by Rep. Curt VanderWall (R-Ludington), would allow for the issuance and extended renewal period of a temporary license for individuals completing their required supervised clinical hours as a speech language pathologist (SLP). Extending the timeline for supervised clinical hour completion will deter new graduates from leaving the state to complete their supervised hours and will assist in the retention of SLPs in Michigan.

SB 384, sponsored by Sen. Kevin Hertel (D-St. Clair Shores), prohibits a disability insurer, long term care insurer or life insurer from discriminating against an individual based on their status as a living organ donor. Individuals who choose to be a living organ donor must meet stringent requirements and many of those who do donate continue to live similarly healthy lives post donation. However, the possibility of discrimination could deter individuals from choosing to be a living donor and therefore limiting access to organs for those most in need. Prohibiting discrimination based on living donor status could increase organ availability, ultimately supporting opportunities for individuals in need of an organ transplant.

Members with questions about state legislative action may contact Adam Carlson at the MHA.

MHA Monday Report June 19, 2023

MHA Monday Report

MHA Members Testify in House Judiciary Committee

Several MHA members testified June 13 to the House Judiciary Committee in support of legislation that would increase the fines for assaulting a healthcare professional or volunteer. House Bills 4520 and 4521 were introduced …


MI Hospital Careers Campaign LogoMHA Launches MI Hospital Careers Healthcare Career Campaign

Michigan hospital and education leaders joined forces June 8 to highlight the current state of Michigan’s healthcare workforce shortage and launch a campaign to expand interest in health careers in Michigan. The goal of the …


Webinar Reviews Medicare FFS Quality-based Programs

The MHA and Data Gen hosted June 14 the second webinar focused on the Medicare fee-for-service (FFS) quality-based programs to review the Medicare readmissions reduction program and hospital-acquired conditions reduction programs. The Medicare …


MDHHS Informs Hospitals on Medicare Crossover Files Issue

The Michigan Department of Health and Human Services (MDHHS) recently notified hospitals about an issue with the Medicare crossover files from the Centers for Medicare & Medicaid Services (CMS) that impacts CMS files from May …


New Pediatric Specialty Loan Repayment Program

The Department of Health and Human Services launched a $15 million loan repayment program to recruit and retain clinicians who provide healthcare to children and adolescents. The Pediatric Specialty Loan Repayment Program aims to …


MDHHS Releases REH Medicaid Reimbursement Final Policy

The Michigan Department of Health and Human Services (MDHHS) recently released a final policy to establish Medicaid reimbursement for rural emergency hospitals (REHs) effective Jan. 1, 2023. The MDHHS reimburses REHs based on the existing …


Preceptor Training Available Through HRSA Grant

Michigan nurses have an opportunity to participate in preceptor training as part of a Health Resources and Services Administration (HRSA) Nurse Education, Practice, Quality and Retention Clinical Faculty and Preceptor Academy grant awarded to Southern …


2023 Ludwig Nominee: Trinity Health Coalition Working to Prevent Youth Suicide

Since 1990, the MHA has honored member healthcare organizations working to enrich the overall welfare of their local communities through the Ludwig Community Benefit Award. This year, the MHA is excited to showcase all award nominees, …


The Keckley Report

Paul KeckleySenate Finance Hearing on Hospital Consolidation: Political Theatre or Something More?

“Congress’ concern about consolidation in healthcare is broad-based. Pharmacy benefits managers and health insurers face similar scrutiny. Drug price control referenda have passed in several states and a federal cap was included in the Inflation Reduction Act. The reality is this: the entire U.S. health system is on trial in the court of public opinion for ‘careless disregard for affordability’. And hospitals are seen as part of the problem justifying consolidation as a defense mechanism. …

Sadly, this hearing is the latest evidence that the good will built by hospital heroics in the pandemic is now forgotten. It’s clear hospital consolidation is an issue that faces strong and increased headwinds with evidence mounting—accurate or not– showing more harm than good. …“

Paul Keckley, June 12, 2023


 

News to Know

  • MHA offices will be closed and no formal meetings will be scheduled June 19 in honor of Juneteenth.
  • MHA Endorsed Business Partner Medical Solutions’ Chief Nursing Officer, Patti Artley recently spoke with Becker’s Hospital Review to offer expert insight into the complex challenges facing nurses today and the proven strategies healthcare leaders must adopt to initiate lasting change.
  • Medicare prospective payment system hospitals are reminded that the completed 2022 occupational mix survey is due to the Medicare Administrative Contractor on June 30, 2023.

Sam WatsonMHA in the News

The MHA received media coverage the week of June 12 regarding prescription drug costs, COVID-19 and behavioral health. MHA representatives appearing in published stories include CEO Brian Peters, Senior Vice President Sam Watson and Senior …

Webinar Reviews Medicare FFS Quality-based Programs

The MHA and Data Gen hosted June 14 the second webinar focused on the Medicare fee-for-service (FFS) quality-based programs to review the Medicare readmissions reduction program (RRP) and hospital-acquired conditions (HAC) reduction programs. The Medicare FFS RRP was implemented in fiscal year (FY) 2013 and penalizes hospitals for exceeding expected readmission rates on the following six select medical conditions/procedures:

  • Acute Myocardial Infarction.
  • Heart Failure.
  • Pneumonia.
  • Chronic Obstructive Pulmonary Disease.
  • Total Hip Arthroplasty/Total Knee Arthroplasty.
  • Coronary Artery Bypass Graft.

The program excludes certain planned readmissions, with payment penalties applied to Medicare FFS inpatient payment for all discharges, ranging from 0 to 3%.

The HAC program, implemented in FY 2014, evaluates hospital performance on AHRQ claims based measures and Centers for Disease Control and Prevention chart abstracted measures, penalizing 25% of hospitals nationally. There is no upside opportunity for these two programs, with remaining whole the most favorable outcome. All program penalties benefit the CMS.

A recording and materials from the webinar are available.

Members with questions regarding these programs or webinars should contact Vickie Kunz at the MHA.

MHA Monday Report June 12, 2023

MHA Monday Report

capitol buildingLegislation to Codify Affordable Care Act Sees Action

Several bills being tracked by the MHA saw action during the week of June 5. In both chambers, bills to enshrine the protections of the federal Affordable Cara Act into state law saw initial …


Facing Workforce Shortages, Health and Education Leaders Launch Campaign to Increase Health Careers

Michigan hospital and education leaders joined forces June 8 to highlight the current state of Michigan’s healthcare workforce shortage and launch a campaign to expand interest in health careers in Michigan. Michigan’s healthcare industry is the largest private sector employer in the state. …


MHA Comments on LTCH PPS Proposed Rule

The MHA recently submitted comments to the Centers for Medicare and Medicaid Services regarding the proposed rule to update the Medicare fee-for-service long term care hospital (LTCH) prospective payment system (PPS) for fiscal …


Webinar Series Continues on Medicare FFS Quality-based Programs

The MHA and DataGen hosted the first of two webinars focused on the Medicare fee-for-service (FFS) quality-based programs June 7 to review the Medicare value-based purchasing program. A recording and materials from the webinar …


AMN Healthcare Webinar on Implementing Language Services June 14

The number of Limited English Proficient individuals living in the U.S. continues to rise more rapidly than the general population, driving demand for language services in hospitals, physician practices and other patient care locations. …


CMS Releases Final Rule for MA Plans and Medicare Prescription Drug Benefit Program

The Centers for Medicare and Medicaid Services (CMS) recently released a final rule for Medicare Advantage plans (MA) and the Medicare Prescription Drug Benefit Program for calendar year 2024. The rule increases oversight of …


2023 Ludwig Nominee: Exercise Program at Sparrow Eaton Helps Patients Manage Chronic Disease

Since 1990, the MHA has honored member healthcare organizations working to enrich the overall welfare of their local communities through the Ludwig Community Benefit Award. This year, the MHA is excited to showcase all award nominees, …


The Keckley Report

Paul KeckleyHeadwinds facing Not for Profit Hospital Systems are Mounting: What’s Next? (Corrected Edition)

Congressional Republicans and the White House spared Main Street USA the pain of defaulting on the national debt last week. No surprise. …

These reactions are understandable. But self-reflection is also necessary. To those outside the hospital world, lack of hospital price transparency is an excuse. Every hospital bill is a surprise medical bill. Supporting the community safety net is an insignificant but manageable obligation for those with tax exemption status.  Advocacy efforts to protect against 340B cuts and site-neutral payment policies are about grabbing/keeping extra revenue for the hospital. What is means to be a “not-for-profit” anything in healthcare is misleading since moneyball is what all seem to play. And short of government-run hospitals, many think price controls might be the answer. …

What’s necessary is a reset for the entire US health system in which not-for-profit systems play a vital role. That discussion should be led by leaders of the largest NFP systems with the full endorsements of their boards and support of large employers, physicians and public health leaders in their communities. …”

Paul Keckley, June 5, 2023


MHA in the News

Fox 2 Detroit (WJBK-TV) published a story June 8 on the nationwide shortage of two critical chemotherapy medications. The two drugs, carboplatin and cisplatin, are used to treat several types of cancer, including bladder, lung, ovarian and …

Webinar Series Continues on Medicare FFS Quality-based Programs

The MHA and DataGen hosted the first of two webinars focused on the Medicare fee-for-service (FFS) quality-based programs June 7 to review the Medicare value-based purchasing (VBP) program. A recording and materials from the webinar are now available.

The Medicare fee-for-service (FFS) VBP program is funded by a 2% contribution from inpatient operating payments of all eligible prospective payment system (PPS) hospitals with these funds, totaling approximately $1.9 billion, redistributed among hospitals nationally. Each hospital’s total performance score is determined based on four program domains comprised of various measures. Although the Centers for Medicare and Medicaid Services (CMS) held all hospital scores neutral in fiscal year (FY) 2022 and 2023 and neither penalized nor rewarded hospitals due to the COVID-19 pandemic, the CMS will resume scoring for the FY 2024 program. The VBP program provides hospitals the opportunity to earn more or less than their 2% contribution and is budget neutral nationally.

The second webinar will be held at 1:30 p.m. June 14 and focus on the Medicare Readmissions Reduction program (RRP) and Hospital Acquired Conditions (HAC) reduction program. For these programs, hospitals can remain whole or be subject to payment penalties up to 3% for the RRP and 1% for the HAC program.

Members are encouraged to register for this webinar.  Those with questions regarding these programs or webinars should contact Vickie Kunz at the MHA.

MHA Monday Report June 5, 2023

MHA Monday Report

MHA Comments on Medicare Fee-for-Service Proposed Rules

The MHA recently submitted comments to the Centers for Medicare and Medicaid Services regarding the proposed rule to update the Medicare fee-for-service inpatient rehabilitation facility prospective payment system for fiscal year …


PRTF Proposed Policy Open for Public Comment

The Michigan Department of Health & Human Services released a proposed policy May 30 for public comment related to Psychiatric Residential Treatment Facilities (PRTFs). This policy will create a chapter in the Medicaid Provider …


FY 24 Hospital IPPS Payment System Comments

The MHA drafted comments to the Centers for Medicare & Medicaid Services regarding the proposed rule to update the Medicare fee-for-service hospital inpatient prospective payment system for fiscal year (FY) 2024. The MHA expresses …


MHA Excellence in Governance Fellowship Application Deadline June 28

Applications are due June 28 for the 2023-2024 class of the MHA Excellence in Governance Fellowship, which will be held from October 2023 through June 2024. The fellowship focuses on the functions of governance, leadership …


Upcoming Webinars on Medicare FFS Quality-based Programs

The MHA is partnering with DataGen to host two free webinars focused on Medicare fee-for-service (FFS) quality-based programs, which can reduce hospital inpatient FFS payments by up to 6%, depending upon hospital performance. The webinars …


MDHHS Announces Grant and Scholarship Program for EMS Students

The Michigan Department of Health and Human Services (MDHHS) has issued a request for proposal for emergency medical services (EMS) workforce grants. This program aims to address the statewide shortage of EMS personnel through scholarships …


2023 Ludwig Nominee: Munson Healthcare Expanding Substance Use Disorder Treatment, Recovery in Northern Michigan

Since 1990, the MHA has honored member healthcare organizations working to enrich the overall welfare of their local communities through the Ludwig Community Benefit Award. This year, the MHA is excited to showcase all award nominees, …


MHA CEO Report — Impact of Drug Shortages on Hospitals

“In the midst of every crisis, lies great opportunity.” — Albert Einstein The shortage of key cancer treatment drugs carboplatin and cisplatin made national headlines in recent weeks, as hospitals implemented multiple strategies to maintain …


The Keckley Report

Paul KeckleySpecial Report: Physicians on the Brink or At the Starting Line?

“The backdrop for the APG and AMA meetings in the next 2 weeks could not be more daunting. Inflationary pressures dog the health economy as each advances an advocacy agenda suitable to their member’s needs. But something is missing: a comprehensive, coherent, visionary view of the health system’s future in the next 10-20 years wherein physicians will play a key role. That view should include… …

The U.S. health system’s future is not a repeat of its past. Recognizing this, physicians and the professional associations like APG and AMA that serve them have an obligation to define its future state NOW.

Some physicians are on the brink of despair; others are at the starting line ready to take on the challenge. …“

Paul Keckley, May 30, 2023


MHA CEO Brian Peters with Paul W Smith of WJR during the Mackinac Policy Conference.

MHA in the News

The MHA received media coverage the week of May 28 regarding the continued shortage of cancer drugs carboplatin and cisplatin and hospital workforce shortages. MHA representatives appearing in published stories include CEO Brian Peters and Executive Vice …

MHA Monday Report May 29, 2023

MHA Monday Report

Michigan Society of Anesthesiologists Address Legislative Policy Panel

The MHA Legislative Policy Panel convened May 24 to develop recommendations for the MHA Board of Trustees on legislative initiatives impacting Michigan hospitals. The meeting was highlighted by a presentation on potential state licensure of …


Bcapitol buildingills on Healthy Michigan Plan Improvements and Tax Credit for Clinical Preceptors See Action

Action was taken the week of May 22 on a variety of bills that would make improvements to the Healthy Michigan Plan, require adult changing tables be included in future construction or renovation projects and …


capitol building

Governor Signs Red Flag Laws

Legislation to create Extreme Risk Protection Orders (ERPOs) was signed by Gov. Whitmer May 22. These new public acts allow for certain individuals, including healthcare providers, to file an ERPO if a person is a …


MHA Continues Work Towards Chemotherapy Drug Shortage

The MHA has been in frequent contact with members of the Michigan Congressional delegation since the association was made aware of shortages of the chemotherapy drugs carboplatin and cisplatin. Representatives Debbie Dingell (D-Ann Arbor) and …


Licensing and Regulatory Updates

The Michigan Department of Licensing and Regulatory Affairs recently published updated rules related to hospitals. Those updates include the following: Final EMS Life Support Agencies and Medical Control Rule The final rule, effective May …


CMS Releases Medicare Wage Index Information

The Centers for Medicare & Medicaid Services (CMS) recently released the timetable and preliminary hospital data that will be used to develop the Medicare wage index for fiscal year 2025, which begins Oct. 1, …


MHA Enrollment Data Analysis Expansion

The MHA recently expanded its analysis of enrollment data to reflect Medicare and Medicaid enrollment as a percentage of each county’s total population and the split for Medicare and Medicaid between fee-for-service and managed care …


MHA Keystone Center Cohosting Caregiver Navigation Roundtable

The MHA Keystone Center is partnering with the Michigan Health Endowment Fund and RUSH University Medical Center to host a virtual roundtable from 10 to 11:15 a.m. June 21 on implementing caregiver navigation programs in …


Person and Family Engagement Leaders Explore PFE Roadmap

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2023 Ludwig Nominee: Hurley Patient Advocate Seeks to Address Barriers to Care

Since 1990, the MHA has honored member healthcare organizations working to enrich the overall welfare of their local communities through the Ludwig Community Benefit Award. This year, the MHA is excited to showcase all award nominees, …


The Keckley Report

Paul KeckleySocial Determinants of Health: Lots of Talk, Modest Results

“For healthcare, this divergence of views is problematic the proposed debt ceiling compromise includes reducing SNAP benefits (Supplemental Nutrition Assistance Program), imposing work requirements for “able-bodied” Medicaid recipients and cutting community health centers budgets—all hit low-income and underserved populations hardest. In these populations, social determinants of health (SDOH) i.e., food insecurity, unsafe/unhealthy housing, inadequate transportation et al play a central role in their health and its costs, but not much is done. …

Abundant health services research points to one conclusion: the inadequacy of solutions to the nation’s burgeoning social issues aka ‘social determinants of health’ results in poorer health status and higher health costs. Disparities persist. Structural flaws and divergent views about public health have calcified its neglect. It’s’ a disconnect the health system is prompted to fix. …”

Paul Keckley, May 22, 2023


MHA CEO Brian Peters appears on the Michigan Business Beat.

MHA in the News

The MHA received media coverage the week of May 21 regarding the continued shortage of cancer drugs carboplatin and cisplatin and hospital workforce shortages. MHA representatives appearing in published stories include CEO Brian Peters, Executive …

MHA Enrollment Data Analysis Expansion

The MHA recently expanded its analysis of enrollment data to reflect Medicare and Medicaid enrollment as a percentage of each county’s total population and the split for Medicare and Medicaid between fee-for-service and managed care organizations. Statewide, nearly 22% of the total population is enrolled in Medicare and 32% enrolled in Medicaid.

Total Medicaid enrollment, including the Healthy Michigan Plan, is 3.2 million as of April 2023, with 71% of beneficiaries enrolled in one of nine managed care plans. The MHA will update this data monthly as we monitor the impact of the Medicaid redetermination process that requires eligibility be redetermined for all enrollees over the next 12 months. The Michigan Department of Health and Human Services began the process April 1, with some enrollees expected to lose coverage July 1.

Total Medicare enrollment is 2.17 million with 59% of beneficiaries enrolled in a Medicaid Advantage (MA) plan. April enrollment is spread across 48 MA plans with up to 28 plans covering beneficiaries in several Michigan counties. The MHA will also update this data monthly as Michigan’s population continues to age and MA enrollment continues to grow.

Members are encouraged to review the MHA’s COVID-19 PHE webpage for information about the end of the PHE and additional resources.

Members with enrollment questions should contact Health Finance at the MHA.

Upcoming Webinars on Medicare FFS Quality-based Programs

The MHA is partnering with DataGen to host two free webinars focused on Medicare fee-for-service (FFS) quality-based programs, which can reduce hospital inpatient FFS payments by up to 6%, depending upon hospital performance. The webinars are scheduled for June 7 and June 14 at 1:30 p.m. ET.

The first webinar will review the Medicare value-based purchasing program. Due to the pandemic, the Centers for Medicare and Medicaid Services (CMS) neither penalized nor rewarded hospitals for fiscal years (FYs) 2022 and 2023, but will do so for FY 2024. The CMS withholds 2% from Medicare FFS inpatient claims, totaling approximately $1.7 billion nationally, with these funds redistributed based on performance. The latest estimates indicate 27 Michigan hospitals will be subject to a $2.8 million payment penalty for FY 2024, with 54 hospitals gaining $6.7 million. Members are encouraged to register for the value-based purchasing webinar.

The second webinar will review the Medicare readmissions reduction (RRP) and hospital acquired conditions (HAC) reduction programs. The CMS opted not to penalize hospitals under the HAC program for FY 2023, but penalties resume in FY 2024, with 25% of hospitals nationally subject to a 1% payment penalty. The RRP evaluates readmissions for six medical conditions, with hospitals subject to penalties of up to 3% that is applied to Medicare inpatient payments for all FFS discharges. The latest FY 2024 estimates indicate 66 Michigan hospitals will be subject to a $12 million RRP penalty, with 24 hospitals subject to a $9.5 million HAC penalty. Members are encouraged to register for the RRP and HAC webinar.

Hospital quality department and finance staff are encouraged to participate in these webinars, which will be recorded and available for future reference. Members with questions should contact Vickie Kunz at the MHA.

Michigan’s Largest Private-sector Employer Remains Healthcare

Provides Nearly 568,000 Direct Jobs, 219,000 in Hospitals Alone

The Partnership for Michigan’s Health reports healthcare directly employed nearly 568,000 Michigan residents in 2021, demonstrating that healthcare remains the largest private-sector employer in the state despite continued staffing losses attributed to the COVID-19 pandemic. The 2023 release of The Economic Impact of Healthcare in Michigan shows direct healthcare workers in Michigan earned nearly $46 billion that year in wages, salaries and benefits. Hospitals alone employed 219,000 individuals in the state in 2021.

Direct healthcare employment helps create additional jobs that are indirectly related to or induced by healthcare. These indirect, healthcare-supported jobs are held by more than 470,000 people who earned about $28 billion in 2021 in wages, salaries and benefits. Together with their employers, the more than one million workers in healthcare contributed $19.6 billion that year in local, state and federal taxes. These taxes include Social Security, income, motor vehicle, sales, property, corporate and more.

Data from 2021 shows the impact the pandemic had on the healthcare workforce in Michigan. While direct jobs decreased by nearly 4,000 total positions, direct wages increased by 4% year-over-year as labor costs rose due to increased demand. Direct wages in hospitals increased by 6.8%, as many hospitals offered wage adjustments and bonuses to recruit and retain employees, and increased the use of contract labor with staffing agencies. A separate study conducted by the MHA in 2022 showed expenses related to contract labor and recruitment and retention bonuses increased by $516 million from 2020 to 2021. Nursing and Residential Care also experienced a similar trend, as the number of jobs in the category fell by about 8,000 but compensation remained about the same.

The increase in direct wages for hospital employees follows a national trend. A recent American Hospital Association report shows labor costs increased 20.8% between 2019 and 2022. The increase is due in large part to a greater reliance on contract staffing agencies due to staffing challenges and to meet patient demand. Increased labor expenses have a more profound impact on hospitals and health systems, as labor expenses account for more than 50% of total expenses for most hospitals. In addition, healthcare reimbursement is unable to quickly respond to inflationary pressures since rates with commercial payers are negotiated months in advance while Medicare and Medicaid rates are even slower to adjust, presenting additional financial challenges when responding to sudden labor market demand.

The loss of healthcare workers has also had a detrimental impact on physician practices. According to a survey conducted by the Michigan State Medical Society, 86% of participating physician practices experienced a decline in the number of health professionals and administrative staff employed by the practice since the start of the COVID-19 pandemic, including physician assistants, nurse practitioners, registered nurses and medical assistants. In addition, 69% reported staffing shortages led to increased wait times for patients, 55% had to reduce hours or available appointments and 43% experienced an estimated 10-25% reduction in patient revenue.

The report was compiled by the Partnership for Michigan’s Health, which consists of the Michigan Health & Hospital Association, the Michigan State Medical Society and the Michigan Osteopathic Association, all based in the greater Lansing area. It uses 2021 data, which is the most recent available.

“Hospitals rely on many workers in a variety of clinical and non-clinical roles to operate every hour of the day, year-round.,” said Michigan Health & Hospital Association CEO Brian Peters. “This report demonstrates the significant number of people it takes to have a high-quality, functioning healthcare system available to all Michiganders.”

“Healthcare is a key driver of not only physical health, but the economic wellness of Michigan,” said Kris Nicholoff, executive director of the Michigan Osteopathic Association. “The Economic Impact of Healthcare in Michigan shows the extensive value healthcare provides to our state, both as an employer and in providing tax revenue for communities.”

“The same dynamics that are at play in our hospitals affect Michigan’s physician practices, which are also struggling to recruit and maintain physicians and ancillary staff,” said Tom George, MD, Interim Chief Executive Officer of the Michigan State Medical Society. “We encourage students to consider pursuing a profession in healthcare, which offers rewarding and stable careers across a variety of disciplines.”

Demand for healthcare careers remains high. A March survey of Michigan hospitals reported more than 27,000 current job openings, including nearly 8,500 open nursing positions, 4,500 technician openings and 3,000 positions for clinical assistants from the 95% of the MHA membership who participated. The need for healthcare workers is not unique to hospitals, and is shared by physician practices, nursing and residential care facilities, home health services, ambulatory services and other healthcare organizations.

The 18th edition of The Economic Impact of Healthcare in Michigan was compiled using IMPLAN® cloud software to quantify healthcare’s significant economic impact in the state. The data represents direct, indirect[1] and induced[2] healthcare jobs; taxes paid by those workers and their employers; and salaries, wages and benefits earned. The report is an online, interactive tool that allows users to examine these economic impacts from a statewide perspective and by region, county or congressional district. It is available at www.economicimpact.org.

[1] Indirect jobs are those created to support a larger employer or industry (for example, a laundry that cleans linens for a hospital).

[2] Induced jobs are those created by the spending of people who work in the indirect jobs (for example, a restaurant waiter who serves the laundry workers).