Legislative leaders and Governor Whitmer have agreed to a high-level framework for the Fiscal Year 2026-2027 state budget and are working to finalize department spending targets. According to House Speaker Matt Hall (R-Richland), the framework includes no tax increases, no use of the Budget Stabilization Fund, and a smaller overall budget than the previous fiscal year. Funding targets remain under negotiation, with details expected in the coming days.
Adding to the conversation around the Capitol is a package of bills (HBs 6116, 6117, 6118, and 6119) recently introduced by House Republicans including Speaker Hall and state Representatives Joe Aragona (R-Clinton Township), Jay DeBoyer (R-Clay Township), and Mike Harris (R-Waterford) aimed at reducing healthcare costs and increasing oversight of hospital pricing and consolidation. Among other provisions, the legislation would create a hospital cost review board to review hospital price increases, mergers, and acquisitions, require nonprofit hospitals to reduce costs by 10 percent to maintain their nonprofit status, and prohibit non-compete clauses for certain, large health systems.
The bills were referred to the House Government Operations Committee. Supporters argue the legislation would address healthcare affordability, pricing and revenue transparency, and market consolidation, while the Michigan Health and Hospital Association (MHA) and other hospital leaders have raised concerns about additional regulation, price controls, and potential impacts on hospital operations. During testimony MHA noted that affordability is a multi-faceted issue, but the bills focus only on one segment of the healthcare system and would disproportionately impact rural hospitals negatively. On the other hand, testimony from the Michigan Health Purchasers Coalition referenced Michigan’s health care’s affordability crisis as a key reason the Legislature needs to act. The Coalition’s President stated that coverage for a family of four on average costs $30,000 per year making it unaffordable for employers and employees.
These are significant healthcare policy proposals that could have far-reaching implications for hospitals, physicians, and patients across Michigan. MSMS will review the legislation in detail and evaluate its potential impact on physician practices, patient access to care, and the broader healthcare delivery system.
Finally, in what was likely the final House Health Policy Committee meeting until August, Committee members voted on a number of bills that had previously received testimony. The Committee reported out SB 144 (direct access for certain limited physical therapy services), SBs 590 and 591 (immunity from liability for those providing certain emergency services), HB 5681 (updating medical record fees), HBs 5728-HB 5738 (a package of bills aimed at easing regulatory burdens that can interfere with providing substance use disorder services), HB 5903 (allowing psychiatric units to temporarily use licensed inpatient beds for adults or minors), and HBs 5943 and 5944 (create licensing for behavioral health transport services).
For further information on these and other issues, please contact MSMS Director of Government Affairs, Kate Dorsey, at kdorsey@msms.org.