Late last week, Senate Majority Leader Mike Bishop (R-Rochester) and Speaker of the House Andy Dillon (D-Redford) added $75 million to the MDCH budget in an attempt to reach a solution on the department’s fiscal year (FY) 2010 funding levels.

The MHA learned that, due to the additional funding, conference committee members have reached an agreement that, while better, still includes massive cuts to the Medicaid program. Medicaid providers, including hospitals, are now expecting the acceptance of a Senate-passed proposal that would reduce hospital inpatient and outpatient reimbursement by 8 percent.

If the proposed 8 percent cuts are implemented, Michigan hospitals would lose $135 million in funding ($36 million in general fund and $99 million in federal matching dollars).

While the proposed hospital reimbursement cut appears to have been successfully reduced from 12 to 8 percent, hospitals must not waiver in their commitment to protect health care funding. As a result, every hospital employee, trustee and volunteer must IMMEDIATELY contact their state representative and senator and urge them to reject the MDCH Conference Committee Report.

Call Your Lawmaker Today!

By Wednesday at midnight, the state Legislature and the governor must reach a budget agreement to resolve a $2.8 billion (school aid and general fund) deficit to avoid a shutdown of nonessential state services. To stave off a shutdown, the MDCH Conference Committee will likely pass a revised FY 2010 budget today with severely reduced funding levels; immediate action is required.

The hospital community must QUICKLY generate a groundswell of opposition to the proposed, catastrophic Medicaid cuts. The voices of the health care community must continue to rise above the noise of other advocacy groups in Lansing; doing so requires the support of you, your staff and other hospital activists.

To locate your lawmaker, visit the Legislative Action Center and select “My Elected Officials.” For instructions on how to use the action center, click here.

The MHA appreciates the health care community’s steadfast advocacy to date; however, the state Legislature is in the final decision-making phase on the FY 2010 budget. Your efforts are needed more than ever during these last remaining days, so please call your lawmaker today.