State Government Shutdown Three Weeks Away, Legislative Leaders and Governor Considering Massive Health Care Cuts to Balance the State Budget

On Sept. 9, the state Senate and state House of Representatives return to session following their summer recess. The primary task that must be addressed is resolution of a projected budget deficit totaling at least $2.8 billion (general fund and school aid) for fiscal year (FY) 2010. If negotiations fail to reach an agreement by Oct. 1 (when the fiscal year begins), nonessential services provided by state government must, by law, be suspended.

Legislative leaders and Gov. Granholm are currently debating funding levels for the Michigan Department of Community Health, which could eliminate between $125 million and $200 million in general fund support. When combined with lost federal matching funds, the cut could grow to between $470 million and $750 million.

Details on specific cuts have not been released; however, hospitals could face an 8 percent cut to inpatient and outpatient rates, totaling more than $135 million ($36 million in general funds and $99 million in lost federal matching funds). Additionally, elimination of optional Medicaid services that occurred in the current fiscal year — podiatric, chiropractic, optometric, hearing and dental — are expected to continue into FY 2010. In addition to direct hospital cuts, the budget will likely include a similar 8 percent Medicaid cut to physicians, long-term care and mental health providers. It is important to remember that hospitals provide many of the above services and employ their practitioners.

Time is of the Essence: The Hospital Community Must Respond QUICKLY!

Legislative leaders and Gov. Granholm must hear from the hospital community that additional funding reductions are completely unsustainable for hospitals and the patients they serve in this unprecedented poor economic climate.

Please IMMEDIATELY contact the elected officials ...

• Gov. Jennifer Granholm: (517) 373-3400 or (517) 335-7858
• Lt. Gov. John Cherry: (517) 373-6800
• Senate Majority Leader Mike Bishop: (517) 373-2417 or (877) 9-Bishop
• Senate Appropriations Chair Ron Jelinek: (517) 373-6960 or (866) 305-2121
• Speaker of the House Andy Dillon: (517) 373-0857 or 888-REP-Dillon
• House Appropriations Chair George Cushingberry, Jr.: (517) 373-2276 or (800) 347-8008

 … and

• Articulate the impact that additional Medicaid cuts will have on your community hospital.
• Urge resolution of the state’s budget crisis — with an infusion of new federal stimulus dollars, NOT through continued MASSIVE CUTS — to protect health care services for all residents.
• Highlight The Detroit News July 2009 poll that indicates 67 percent of Michigan voters oppose cuts to Medicaid.

Lawmakers must understand that health care services for patients seeking treatment in Michigan hospitals will be at risk, more hospitals will be unable to cover the cost of patient care, and thousands of health care jobs will be threatened if additional Medicaid funding cuts occur and federal matching funds are abandoned.

Please immediately call Gov. Granholm, Lt. Gov. Cherry, Senate Majority Leader Bishop, Speaker of the House Dillon and Appropriations Committee Chairmen Jelinek and Cushingberry to convey these critical advocacy messages. It is of dire importance that these legislative offices are flooded with calls in the next two weeks.

Click here for state budget talking points. To locate key lawmakers or the governor, visit our Legislative Action Center and select "My Elected Officials". For instructions on how to use the action center, click here.

If you have any questions regarding this Action Alert, please contact David Finkbeiner at the MHA at (517) 703-8604.