|
FY 2009 MDCH Budget Moved to Conference
Committee as Action Escalates
Hospitals Urged To Contact
Conference Committee
Members
The Michigan Department of
Community Health (MDCH) budget for fiscal year
(FY) 2008-2009 is now before a state Senate and
House conference committee, chaired by Sen.
Roger Kahn (R-Saginaw), after the Senate
rejected the House version of the budget bill
earlier this month.
The conference committee is
trying to settle the important differences among
the three separate
Medicaid budgets that have been
proposed by the governor, Senate and House.
Under state law, the conference committee can
discuss and resolve only the differences
between the House and Senate budgets; however,
representatives from the administration
participate in the conference committee process
to offer its recommendations.
Until the budget is
resolved, the MHA and its 146 member hospitals
must strongly urge the MDCH conference committee
to adopt various funding provisions that were
contained in the Senate or House version of the
budget.
The MHA is strongly
urging the conference committee to adopt the
following three recommendations contained in the
House budget:
-
the elimination of
appropriations earmarks financed by the
hospital Quality Assurance Assessment
Program (QAAP)
-
the reduction of the
state’s retention of the hospital QAAP from
$126 million to $107 million
-
the restoration of
Medicaid funding and eligibility for 19- and
20-year-olds
It is important to note
that the Senate restored the $5 million
disproportionate share hospital payments, which
were originally eliminated in the governor’s
budget recommendation. The House concurred with
this change; therefore, this priority is
preserved and will not be discussed in the
conference committee deliberations.
In addition, the Senate and
the House versions of the budget did not
contain any reductions to Medicaid provider
rates, graduate medical education funding or the
traditional disproportionate share hospital
line. These funding priorities are also
preserved and will not be part of the conference
committee negotiations.
Challenges Ahead
To date, the MHA and its
members have been successful in advocating for
multiple MHA Board of Trustees priorities in the
budget process. The challenge is to maintain
these priorities on behalf of hospitals and the
patients they serve through the end of the
conference committee process.
This challenge is
magnified, due to the fact that the state
general fund revenues are now predicted to be
approximately $309 million less in FY 2009 than
was estimated in January 2008. This revenue
shortfall will further threaten Medicaid funding
and eligibility requirements.
Next Steps: Hospital Community Must Respond
The MHA continues to work
with Gov. Granholm and state legislative
leadership to maintain the association’s
priorities. For our advocacy efforts to
succeed throughout the budget process, members
of the MDCH Budget Conference Committee and Gov.
Granholm need to hear from the hospital
community!
Please
contact
the MDCH conference committee members . . .
- Sen. Roger Kahn (R-Saginaw)
- Sen. John Pappageorge (R-Troy)
- Sen. Deb Cherry (D-Burton)
- Rep. George Cushingberry
(D-Detroit)
- Rep. Gary McDowell (D-Rudyard)
- Rep. Bruce Caswell (R-Hillsdale)
. . . and urge them to maintain:
-
current hospital funding and programs
-
Medicaid eligibility and coverage for 19-
and 20-year-olds
-
the reduction of the state’s retention of
the hospital QAAP to $107 million
-
the elimination of appropriation earmarks
financed by the hospital QAAP
The following tools will assist you in
contacting these lawmakers:
Legislative leaders hope to complete the state
budget process before the July 4 holiday.
If you have any questions regarding this Action
Alert, please contact
David Finkbeiner at the MHA at (517)
703-8604. | 
