As many health systems brace for impact around HR 1’s Medicaid cuts, Grand Rapids, Mich.-based Corewell Health has developed strong footing that will help it weather the incoming storm.
“The only thing that’s impacting us so far is less people have access to Medicaid,” Matthew Cox, executive vice president and CFO of Corewell Health, told Becker’s. “There are more Michiganders that used to qualify for Medicaid than qualify now, and we’re seeing that translate into our organization as increased charity needs, increased bad debt and more patients that are delaying care because they don’t have the same level of access that they did when they had coverage.”
Mr. Cox, who was also named national chair June 1 of the Healthcare Financial Management Association, has been with the health system for nearly nine years. He joined when it was still Spectrum Health, an approximately $8 billion organization. Now valued at about $19 billion health system, Corewell Health comprises 21 hospitals, more than 300 ambulatory and outpatient locations, more than 60,000 employees, and a health plan with more than 1.4 million members, according to its website.
Mr. Cox said he expects to see deeper cuts from HR 1 in 2027 and beyond in Michigan.
To combat this, Corewell brought in McKinsey Consulting to help the system look at where it can make improvements. The system launched an “acceleration office,” holding weekly meetings to examine areas that need improvement across the organization.
“We’re taking the time now while we’re strong to make sure that we’re being incredibly effective and efficient in everything that we do,” he said. “I believe that us as an organization, we’re going to continue to thrive because we’re being proactive in preparing for the future.”
Corewell is also focused on growth, with several capital projects underway. In mid-July, the system shared it is expanding care access across Southwest Michigan with clinic expansions, new care centers and workforce investments to bring service closer to patients.
The system is leaning on AI across the organization to support this growth mission, including in areas like revenue cycle.
“It’s embedded in everything that we do,” he said. “I’m seeing it as a real catalyst for us.”
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