State Senate restores some physician training funding; Wayne State gets psychiatric program > Michigan State Medical Society


State Senate restores some physician training funding; Wayne State gets psychiatric program

by Jay Greene in Crain's

Teaching hospitals that sponsor graduate medical education programs received some good news when the Michigan Senate approved a supplemental appropriations bill that restored $8.9 million of $14.7 million that was cut this year from the Michigan Department of Community Health's 2011-12 budget.

Under House Bill 5014, the state Senate increased gross state spending $366.3 million, including $348 million earmarked for the Community Health Department. Of that amount, $180.3 million will come from state general fund appropriations and the remainder from federal matching funds.

Eight other state departments, the executive office and the Legislature received budget increases.

The Senate bill is expected to be considered by the Michigan House in early December.

In May, Gov. Rick Snyder proposed cutting graduate medical education funding almost 40 percent. The Legislature later agreed to cutting those funds only 9 percent or $14.7 million.

But based on higher-than-expected revenue for fiscal 2010-11 and federal matching dollars, Sen. John Pappageorge, R-Troy, said the Legislature could increase the state's budget this year.

In a statement, the Michigan Health & Hospital Association said it was pleased that the state restored some funding, although hospitals still have to deal with $5.9 million less for graduate medical education.

"GME helps provide critical access to health care for vulnerable populations and is essential for preserving health care jobs and helps teaching hospitals offset the costs of operating medical residency programs for physicians who have completed medical school training and who provide significant patient care to vulnerable populations in hospitals and clinics," the state association said.

Here are some Senate funding recommendations for Community Health:
  • Electronic health record incentive: $119.4 million ($1.4 million in state general funds)
  • Wayne State University psychiatric program: $8.5 million (zero state funds).
  • Restoration of Medicaid chiropractic services: $450,000 ($152,000 in state funds).
  • Traumatic brain injury pilot studies: $200,000 ($100,000 in state funds).
  • New disproportionate-share indigent care hospital fund: $10 million $3.4 million in state funds).
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