MI SB0701

Department of Human Services must allocate at least $26,000,000 annually from its general fund to a rural hospital access pool to assist sole community hospitals and rural hospitals serving low-income residents.

$8,470,200 annually must be proportionately divided among sole community hospitals and rural hospitals providing obstetrical care to Medicaid beneficiaries based on proportion of Medicaid deliveries in the second preceding fiscal year.

Remaining pool funds are allocated first to reimburse hospitals for unreimbursed costs for fee-for-service inpatient and outpatient Medicaid services, then based on each hospital's proportion of Medicaid managed care outpatient payments.

No hospital may receive more than 10% of total rural hospital access pool funding in any single fiscal year.

Defines "rural hospital" as a hospital with 50 or fewer staffed beds located in a county with population not exceeding 195,000 and a city, village, or township with population not exceeding 15,000 (based on 2020 census).