The MHA is very pleased to report a very favorable FY 2015 budget outcome. As expected, Governor Snyder signed House Bill 5313 into law, resulting in the approval of the fiscal year (FY) 2015 Michigan Department of Community Health (MDCH) budget containing more than $18 billion in appropriations. Public Act 252 of 2014 was signed on June 30 and will take effect Oct. 1, 2014.

The FY 2015 MDCH budget directs more than $95 million in additional funding to Michigan hospitals to help serve their patients and communities, whereas the original executive budget recommendation would have resulted in cuts totaling more than $40 million. Highlights of the budget include the following elements:

• An $85 million provider tax-funded outpatient disproportionate share hospital pool expansion ($46 million net to hospitals after tax and state retention).
• An $11 million pool supported by the General Fund (GF) for a new small and rural hospital obstetrics stabilization fund.
• Restoration of $36 million for the small and rural hospital pool (GF-funded). The governor's budget recommendation totally eliminated this funding.
• Restoration of $4.3 million (GF-funded) to support GME.
• FY 2015 hospital payment distributions will be updated by the Medical Services Administration in the fall.
• With last month's passage of a permanent fix to the Health Insurance Claims Assessment, the FY 2015 budget reflects a funding solution for a $375 million revenue shortfall.

Members are commended for their outstanding outreach and advocacy efforts during this year's legislative budget cycle. For more information about Advocacy Efforts, bill tracking or a brief advocacy overview visit the MHA website.