Michigan hospitals are pushing back against proposed legislation intended to rein in health care costs in the state. Republican House members last week introduced a package of bills that would create a state hospital pricing board, limit hospital price increases, restrict health care consolidation and prohibit certain physician non-compete agreements.
"Voters across Michigan and across the United States are telling anyone who will listen that there is no more urgent crisis than health care affordability," Bret Jackson, president of the Michigan Health Purchasers Coalition, told The Center Square. "The House package is a bold solution taking aim at one of the biggest drivers of the affordability crisis -- hospital prices. We look forward to reviewing the bills and working with all members of the legislature to ensure working families, employers and hospitals can all grow and prosper in Michigan."
Under the proposals, nonprofit hospitals would be required to reduce prices by 10% when the law takes effect. Hospitals can increase prices only if they demonstrate higher costs for providing care, such as increased labor or medication expenses, and price increases would be capped at the rate of inflation. The legislation also would establish a five-member Hospital Cost Review Board to review hospital budgets, financial reports, service data and proposed rate increases.
A separate bill would direct revenue collected from penalties into a grant program supporting rural health care access, while another bill would require hospitals seeking mergers or acquisitions to obtain approval from the new board. The final bill that is part of the package would prohibit hospital systems with more than $2 billion in annual revenue from requiring physicians to sign non-compete agreements, except in limited circumstances involving other large hospital systems.
The Michigan Health & Hospital Association firmly opposes the legislative package. "Proposals that introduce additional administrative burdens and arbitrary government price controls would exacerbate the affordability challenges they seek to address," CEO Brian Peters said in a statement.
The association encouraged its members and other community stakeholders to contact their state legislators and the governor to oppose the bills. All of the bills in the package have been referred to the House Government Operations Committee for further consideration. Because they have received no support from House Democrats, The Center Square said it may be difficult for them to pass the Democratic-controlled Senate.
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