Michigan hospital funding at risk

As hearings were held yesterday on the Patient Access Protection Act (H.R. 3022) – a bill to delay cuts to the Medicaid Disproportionate Share Hospital (DSH) program – data from the Department of Health and Human Services (HHS) shows just how critical the program’s funding is for hospitals in Michigan and across the country.

According to HHS, 121 hospitals in Michigan rely on this crucial funding, which is at risk if cuts to the DSH program are not delayed.

The Medicaid DSH program provides vital support to Michigan hospitals that serve a disproportionate number of Medicaid beneficiaries and uninsured patients.

The program is essential for hospitals to offset their uncompensated care costs from treating low-income patients.

Because DSH hospitals usually have a low percentage of commercially insured patients, they cannot cost-shift these losses to private payers.

Last month, 302 members of the House of Representatives, including six Michigan representatives from both parties, sent a bipartisan letter to Congressional leaders calling for a delay in cuts to the DSH program.

Today, the Health Subcommittee of the Committee on Energy and Commerce in the House of Representatives held hearings on H.R. 3022, a bill that would delay the cuts.

If the cuts are implemented, Michigan hospitals could lose $197.4 million the first year and double that number the following year.

Industry experts warn that these proposed cuts to the program are unsustainable for struggling safety net hospitals, especially in rural areas, and could force some of them to reduce services or even close their doors.

These cuts could devastate Michigan hospitals, and limit Michiganders’ access to care.

In Michigan, the 121 hospitals that receive DSH funds include:

  • University of Michigan Health System: $71,823,095
  • Kalamazoo Regional Psychiatric Hospital: $52,451,355
  • Center for Forensic Psychiatry: $24,813,659
  • Henry Ford Hospital: $22,910,922
  • Walter P. Reuther Psychiatric Hospital: $17,982,250
  • Caro Regional Mental Health Center: $14,873,640
  • Harper University Hospital: $14,850,274
  • Children’s Hospital of Michigan: $13,946,544
  • McLaren – Greater Lansing: $12,334,053

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