LANSING, Mich. (Oct. 10, 2024) — Earlier this week, Gov. Gretchen Whitmer signed legislation sponsored by Senate Majority Floor Leader Sam Singh (D-East Lansing) that expands the definition of which hospitals can qualify for funds distributed to the rural hospital access pool. Now law, Senate Bill 701 will better ensure rural hospitals are equipped with the resources necessary to provide quality care to their community.
“Michiganders shouldn’t have to worry whether or not they’ll be able to access quality healthcare simply because of where they live,” said Sen. Singh. “By making this simple change to adapt to our evolving communities, this legislation enhances our capacity to address the needs of underserved populations throughout the state. Thanks to Gov. Whitmer for signing this into law, bringing much-needed resources to Memorial Healthcare and numerous other hospitals serving Michigan’s rural communities.”
This new law changes the definition of which facilities qualify as “rural hospitals” for the purpose of accessing funds from the rural hospital access pool. These technical changes enable 71 locations in three additional counties — Livingston, Muskegon, and Saginaw — to now qualify as sites. The City of Owosso in Shiawassee County, an already eligible county, also qualifies under the new definition, allowing Memorial Healthcare — the only hospital in Shiawassee County — to be eligible for these funds.
“The passage of this legislation provides important support to Memorial both as a rural community hospital and maternal healthcare provider,” said Memorial Healthcare President and CEO Brian Long. “Senator Singh’s ongoing partnership and leadership is truly appreciated and has helped to ensure continued access to healthcare services throughout our region.”
Specifically, this legislation amends the Social Welfare Act by removing the definition of “critical access hospital” and modifying the definition of “rural hospital” as it pertains to the distribution of funds to a rural hospital access pool. Previously, the definition of a “rural hospital” included facilities located in counties with populations of 165,000 or less, and in cities, villages, or townships with populations under 15,000 based on the 2010 census. This new law raises the county population limit to 195,000 using 2020 census data, while keeping the city, village, and township population cap unchanged.