Michigan Health & Hospital Association Establishes MHA Center of Rural Excellence

The Michigan Health & Hospital Association (MHA) today announced the establishment of the MHA Center of Rural Excellence, a 501(c)(6) organization created to formalize and strengthen the collective voice of rural hospitals through support tailored to the unique challenges of Michigan’s rural providers, including targeted advocacy efforts on their behalf.

“Rural hospitals are navigating increasing financial strain, workforce shortages and complex funding structures that were not developed with rural realities in mind,” said MHA CEO Brian Peters. “The MHA Center of Rural Excellence is designed to provide dedicated advocacy and governance to give rural hospitals the support needed to manage these challenges and continue caring for their communities.”

Michigan ranks fourth for the number of residents living in rural counties with a full or partial primary care workforce shortage and sixth for residents living in rural counties with a shortage of mental health professionals, according to the University of Michigan’s Institute for Healthcare Policy & Innovation.

The MHA Center of Rural Excellence will elevate rural‑specific perspectives to policymakers, ensuring rural hospitals’ distinct challenges receive the attention they deserve. This approach will position rural hospital leaders at the center of state policy decisions that directly affect the communities they serve.

The MHA Center of Rural Excellence will also have a specific focus on Rural Health Transformation Program (RHTP) funding, including efforts to maximize the amount of available resources that can be dedicated to rural Michigan hospitals.

Lauren LaPine-Ray, DrPH, MPH, will serve as executive director of the MHA Center of Rural Excellence. Jeremiah J. Hodshire, president and chief executive officer, Hillsdale Hospital, will chair the member-led board.

For more information, visit the MHA Center of Rural Excellence webpage.

MHA Members and Business Leaders Join Crain’s for Healthcare Affordability Roundtable

The MHA partnered with Crain’s Content Studio to facilitate a healthcare affordability discussion, which was highlighted in its Detroit and Grand Rapids publications.

Healthcare and business leaders examined the complex factors driving healthcare costs and its impact on both patients and employers. Participants emphasized that meaningful change will require coordination across the healthcare system, including providers, insurers, businesses and policymakers.

Hospital leaders highlighted existing efforts to improve efficiency, reduce administrative burden and expand new care models that help keep patients healthier and out of the hospital.

The discussion reinforced Michigan hospitals’ commitment to addressing affordability while maintaining access to high-quality care.

Members with questions regarding media requests should contact Elise Gonzales at the MHA.

MHA CEO Report — Sustaining Hospital Funding is Key to Meaningful Reform

MHA Rounds image of Brian Peters

“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.MHA Rounds graphic of Brian Peters

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.

MHA Releases FAQ on Rural Health Transformation Program Funding

The MHA recently released a new frequently asked questions (FAQ) document to help members better understand allowable uses, limitations and compliance requirements related to Michigan’s Rural Health Transformation Program (RHTP).

The FAQ clarifies that RHTP funding is temporary and intended to support specific care transformation activities. Funds cannot be used to cover routine operating costs, financial losses or to replace existing funding. Repayment may be required if funds are used for purposes not approved or if required documentation and reporting are not completed.

The document also addresses common questions raised by hospitals, including the use of RHTP funds for provider payments, health information technology investments, electronic medical record upgrades and limited facility improvements. In all cases, expenses must be directly connected to transformation activities approved by the Centers for Medicare & Medicaid Services (CMS).

Additional RHTP information and resources are available on the MHA’s Rural Health Transformation Program webpage. The MHA will continue to update both the FAQ and the webpage as more guidance becomes available from the Michigan Department of Health and Human Services and CMS.

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

CMS Releases 2025 Occupational Mix Survey for Hospitals

The Centers for Medicare & Medicaid Services (CMS) recently released the 2025 occupational mix survey to collect data from hospitals paid under the Medicare inpatient prospective payment system. Survey results will be used to adjust the Medicare area wage index for fiscal years 2028, 2029 and 2030. Completed surveys must be submitted to the hospital’s Medicare Administrative Contractor (MAC) on the Excel reporting form by June 30, 2026, and must be submitted to the MAC via email.

The MHA hosted an educational webinar in June 2025, and members may request access to the materials and recording by contacting Crystal Mitchell at the MHA.

Members with questions should contact Vickie Kunz at the MHA.

HHS Announces $100M Investment in Substance Use and Mental Health Treatment

U.S. Department of Health and Human Services (HHS) Secretary Robert F. Kennedy Jr. announced a $100 million investment to expand substance use disorder treatment, mental health services and housing-related supports under the administration’s Great American Recovery initiative.

The funding will launch the Safety Through Recovery, Engagement, and Evidence-based Treatment and Supports (STREETS) initiative, which will support targeted outreach, psychiatric care, medical stabilization, crisis intervention and connections to stable housing for individuals experiencing homelessness and substance use disorder.

HHS also announced a $10 million Assisted Outpatient Treatment (AOT) grant program to support adults who have difficulty engaging in traditional outpatient care. The program uses court-ordered, community-based treatment as an alternative to hospitalization, homelessness or involvement with the criminal justice system.

In addition, HHS announced changes allowing states and tribes to receive a 50% federal match to provide medications for opioid use disorder, buprenorphine, methadone and naltrexone, to parents whose children are at risk of entering foster care. The medications are approved by the U.S. Food and Drug Administration and are intended to support recovery and family stability.

Members with questions may contact Lenise Freeman at the MHA.

MHA Monday Report Feb. 2, 2026

State Legislative Weekly Recap: House Appropriations Committee Continues RHTP Testimony

The Michigan House Appropriations Committee continued testimony during the week of Jan. 26 on federal funding awarded through the Rural Health Transformation Program (RHTP) and on legislation related to the 340B program and next-of-kin designations. …


MHA Events2026 MHA Human Resources Conference Registration Open

The 2026 MHA Human Resources Conference, scheduled for March 24 at the Crowne Plaza Lansing, will convene human resources leaders and professionals who are shaping the future of the healthcare workforce. In an evolving healthcare …


MHA Shares Recent Medicare and Medicaid Enrollment Analysis

The MHA recently updated its analysis of Medicaid and Medicare enrollment based on December 2025 data. The analysis includes program enrollment as a percentage of each county’s total population and the split between fee-for-service …


New MHA Infographic Provides Overview of RHTP Program in Michigan

The MHA recently released a new infographic that provides an overview of the RHTP in Michigan. This infographic highlights the scope of the program, Michigan’s rural health landscape and the $173 million awarded to the …


Pediatric Vaccination Guidance: What Michigan Providers Need to Know

The American Academy of Pediatrics recently published its 2026 immunization schedule for children and adolescents, recommending protection against 18 diseases including polio, measles, respiratory syncytial virus and meningococcal disease. This comprehensive schedule draws …


Deadline Approaching for MHA Healthcare Leadership Academy

The enrollment deadline for the MHA Healthcare Leadership Academy is Feb. 6. The cohort meets Feb. 25-27 and May 7-8 at the MHA headquarters in Okemos. The Healthcare Leadership Academy, in partnership with Executive Core, has …


Hospitals Help: Munson Healthcare, Community Partners Offer Free Family Support Program

Healthy Futures is a free family support program that helps answer questions and assists families in finding services and resources in the community. The program, which has no eligibility requirements, is a collaboration between Munson …


MHA Rounds graphic of Brian PetersMHA CEO Report — The Reality Behind a Hospital Ribbon-Cutting

Hospital ribbon-cutting ceremonies tend to spotlight the new and modern elements of a hospital expansion: bright windows, sleek patient rooms or advanced diagnostic technology. But what you don’t see is often more important than what …

New to Know


News to Know

  • The MHA recently created a dedicated newsroom webpage #HospitalsHelp, highlighting stories from member hospitals across Michigan and their community benefit efforts.
  • Stay connected with the MHA for the latest healthcare updates in Michigan across its social media platforms, including Facebook, X, LinkedIn, Instagram, Bluesky and Threads.

MHA in the News

The Detroit News published a story Jan. 29 on two recent House Appropriations Committee hearings on the distribution of RHTP funds. The article details concern from House lawmakers and rural providers …

Report: Access, Affordability & Community Health Improved by Hospital Programming, Investments

2025 MHA Community Impact Report

The Michigan Health & Hospital Association (MHA) released today its 2025 Community Impact Report highlighting community programming and investments from Michigan hospitals that are improving access to care, addressing affordability and advancing the health of communities across every region of the state.

The report showcases 12 hospital-led programs that go beyond the traditional care setting to address community health needs across the state. It also outlines investments totaling more than $4.5 billion in community benefit activities in fiscal year (FY) 2023, from education and prevention services to clinical research, healthcare workforce support and more.

“Michigan hospitals continue to redefine care delivery and create new, innovative access points across the state,” said MHA CEO Brian Peters. “The MHA Community Impact Report is a strong reminder that our hospitals are committed to listening – and responding – to the needs of their communities.”

Programs featured in the report include University of Michigan Health-Sparrow’s mobile health clinic; Henry Ford Health’s hospital-based doula program; Corewell Health Gerber Hospital’s vaping cessation initiative; Mackinac Straits Health System’s retail pharmacy; and efforts by Bronson Battle Creek Hospital to address food insecurity; among many others. This work is a result of strategic investments, local partnerships and support from state and federal healthcare champions.

“Improving community health goes beyond the bedside,” said MHA Board Chair Bill Manns, president and CEO, Bronson Healthcare. “When we invest in programs that address socioeconomic challenges like food insecurity, we’re helping people overcome the barriers that stand between them and a healthier life.”

The full report and community impact stories from hospitals across the state can be accessed on the MHA website.

Based in Greater Lansing, the MHA is the statewide leader representing all community hospitals in Michigan. Established in 1919, the MHA represents the interests of its member hospitals and health systems in both the legislative and regulatory arenas on key issues and supports their efforts to provide quality, cost-effective and accessible care. The MHA’s mission is to advance the health of individuals and communities.

Michigan Hospital Collaboratives Launch to Improve Community Health

More than 50 Michigan hospitals are coming together to improve outcomes in maternal health, behavioral health and chronic disease across the state through new community benefit collaboratives launched by the Michigan Health & Hospital Association (MHA). The goal is to leverage community impact programming to maximize statewide improvements in these three areas.

The MHA will lead participating hospitals in implementing multi-year, scalable projects focused on enhancing group prenatal care, improving perinatal mood disorder screening and support, preventing postpartum depression and expanding food access and nutrition education. The collaborative topics were selected based on a review of all Community Health Needs Assessments completed by Michigan hospitals. Each collaborative is modeled after existing programs at Michigan hospitals and healthcare organizations designed to address healthcare barriers and improve health outcomes.

“This work reflects Michigan hospitals’ commitment to investing in their communities far beyond their four walls to improve population health,” said MHA CEO Brian Peters. “These collaboratives are designed to scale local success into making a statewide impact that advances the health and well-being of Michiganders where they live, work and grow.”

Each collaborative has various components that can be tailored to meet the unique needs of a hospital, depending on size, available resources and patient populations. The implementation of the collaboratives is supported by funding from the Michigan Health Endowment Fund. Public Policy Associates will facilitate program evaluations.

The list of participating hospitals for each collaborative is available below.

Behavioral Health Collaborative  

  • Henry Ford Health
  • MyMichigan Medical Center Alma
  • MyMichigan Medical Center Clare
  • MyMichigan Medical Center Gladwin
  • MyMichigan Medical Center Midland
  • MyMichigan Medical Center Mt. Pleasant
  • MyMichigan Medical Center Saginaw
  • MyMichigan Medical Center Sault
  • MyMichigan Medical Center Standish
  • MyMichigan Medical Center Tawas
  • MyMichigan Medical Center West Branch
  • ProMedica Monroe Regional Hospital
  • ProMedica Charles and Virginia Hickman Hospital
  • Trinity Health Ann Arbor
  • University of Michigan Health-Sparrow Lansing
  • University of Michigan Health-West

Chronic Disease Collaborative

  • Aspirus Iron River Hospital & Clinics
  • Aspirus Keweenaw Hospital & Clinics
  • Aspire Rural Health System Deckerville Community Hospital
  • Aspire Rural Health System Hills & Dales Healthcare
  • Aspire Rural Health System
  • Beacon Kalamazoo (formerly Borgess Hospital)
  • Bronson Battle Creek Hospital
  • Henry Ford Health
  • Kalkaska Memorial Health Center
  • Munson Medical Center
  • MyMichigan Medical Center Alma
  • MyMichigan Medical Center Clare
  • MyMichigan Medical Center Gladwin
  • MyMichigan Medical Center Midland
  • MyMichigan Medical Center Mt. Pleasant
  • MyMichigan Medical Center Saginaw
  • MyMichigan Medical Center Sault
  • MyMichigan Medical Center Standish
  • MyMichigan Medical Center Tawas
  • MyMichigan Medical Center West Branch
  • Scheurer Health
  • Schoolcraft Memorial Hospital

Maternal Health Collaborative  

  • Bronson Methodist Hospital
  • Corewell Health Lakeland Hospitals – St. Joseph Hospital
  • Henry Ford Health
  • MyMichigan Medical Center Alma
  • MyMichigan Medical Center Clare
  • MyMichigan Medical Center Gladwin
  • MyMichigan Medical Center Midland
  • MyMichigan Medical Center Mt. Pleasant
  • MyMichigan Medical Center Saginaw
  • MyMichigan Medical Center Sault
  • MyMichigan Medical Center Standish
  • MyMichigan Medical Center Tawas
  • MyMichigan Medical Center West Branch
  • Three Rivers Health Hospital (Beacon Health System)

To learn more about community benefit efforts across the state, visit the MHA Community Benefit webpage.

Based in Greater Lansing, the MHA is the statewide leader representing all community hospitals in Michigan. Established in 1919, the MHA represents the interests of its member hospitals and health systems in both the legislative and regulatory arenas on key issues and supports their efforts to provide quality, cost-effective and accessible care. The MHA’s mission is to advance the health of individuals and communities.

Veiled Attacks on Hospitals by Secretive Special Interests are Growing Tired

The following statement can be attributed to Brian Peters, CEO of the Michigan Health & Hospital Association.

Today’s Michigan Healthcare Purchaser’s Coalition publication on hospital margins is just another attempt by a secretive special interest group, hiding behind the veil of claiming to represent the employer community at large, to smear hospitals for being able to keep their doors open. Hospitals are committed to providing safe, high quality, affordable care in every community they serve. Hospitals save lives and put patients first – not profits. Hospitals have and continue to welcome conversations with actual employers, large and small, community members and legitimate business groups about healthcare pricing, access and quality so that they can work together on solutions, rather than spending time responding to blatantly misleading reports like this one.

Not only is this report published by a group that does not disclose on its website who is funding it or who it claims as members (or what their profit margins are), but its methodology based on the National Academy for State Health Policy’s Hospital Cost Tool is flawed. This report does not use the industry-standard method for calculating operating margins; it fails to account for costs associated with running a hospital. In the latest RAND Hospital Price Transparency study, Michigan has the third lowest average commercial price relative to Medicare in the entire country and one of just five states with case mix-adjusted hospital prices below 200% of Medicare prices. Lastly, the Kaiser Family Foundation in December 2024 published a study which found Michigan was one of only four states in the country where hospitals had, on average, a negative margin.

As always, we welcome open and transparent conversations about what is driving hospitals’ cost structures, such as:

  • Good workers who can take care of you and save your life demand, and deserve, high wages. According to Lightcast data, advertised salaries for registered nurses have grown 26.6% faster than the rate of inflation over the past four years.
  • People are sicker and need more care. Emergency department visits related to heart failure increased 126.7% per capita between 2010 and 2019, with associated spending growing 177.2%.
  • Medicare reimbursement continues to lag behind inflation — covering just 83 cents for every dollar spent by hospitals in 2023, resulting in over $100 billion in underpayments, according to the American Hospital Association (AHA) analysis of AHA Annual Survey data. Comparing commercial prices to government reimbursement, which has almost never even come close to covering what it costs a hospital to deliver that care, is irresponsible and misleading.

If the Michigan Healthcare Purchaser’s Coalition wants a transparent conversation about the price of healthcare, we again extend an invitation to their leadership and members, whoever they are, to have a solutions-focused dialogue together. Unfortunately, their continued public attacks using bad information indicates their true intention isn’t more affordable healthcare; it’s to bash community hospitals and the 220,000 workers taking care of Michigan patients.