The proposed funding cuts to hospitals in 2016 total $74 million — a $57 million general fund cut to graduate medical education, a $12 million cut for small and rural hospitals and a $5 million cut to hospitals that perform obstetrical services in rural areas, according to the report. However, Laura Appel, senior vice president of federal policy and advocacy with the Michigan Health and Hospital Association, contended in the report that the overall funding hit is $163 million when federal matching funds are added.
In a statement used by Crain’s Detroit Business, MHA President Spencer Johnson said the association is looking at how the proposal would impact hospitals in the state, the healthcare community and patients and “will consider all its options as the (Michigan) Legislature confronts the state’s budget shortfall.”
According to the report, Michigan’s proposed 2016 budget states that “Additional revenues to the healthcare system as a direct result of the Healthy Michigan (Medicaid expansion) plan more than offset these reductions.”
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