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Hospitals tell lawmakers 23,000 vacancies, urge sustained nursing recruitment and safety measures
Summary
Speakers from the Michigan Health & Hospital Association described widespread staffing shortages—especially in nursing—credited recent state recruitment funding for retention gains and urged more work on training pipelines and worker safety.
Michigan hospitals told the House Insurance Committee that workforce shortages, especially in nursing, remain a major driver of health‑care costs and access challenges, and praised recent state investment while urging continued support for training and safety initiatives.
Elizabeth Cutter, senior director for government and political affairs at the Michigan Health & Hospital Association, said hospitals employed more than 220,000 people statewide and generated about $10.4 billion a year in tax revenue, but member hospitals reported approximately 23,000 vacancies as of early 2025. "Nursing continues to be the highest number of people that we need," Cutter said.
Why it matters: Labor typically represents the single largest share of hospital expenses and rising wages and competition for workers increase hospital operating costs. Cutter told the committee that labor costs are roughly 56% of total hospital expenses and that hospitals compete with many employers for staff, including for nonclinical roles.
Association officials credited the legislature's pandemic-era investments—$225 million and a subsequent $75 million—directly to nursing retention and recruitment programs. Cutter said those dollars helped raise Michigan's nursing retention rates to about two to three percentage points above national averages, a result she attributed to legislative partnership.
Panelists asked the committee to support a mix of policies: expansion of community‑college and 4‑year partnerships that allow students to complete nursing degrees locally; scholarship and loan‑repayment programs; inclusion of short, high‑demand health credentials in state programs (for example, phlebotomy or patient‑care technician courses in the Reconnect program); and stronger protections against workplace violence.
Laura Pell, executive vice president for government relations and public policy at the MHA, said the association has backed bills that would increase penalties for assaulting health‑care workers and that hospital systems are investing in security. "You should feel safe when you come to your place of business," Pell said.
Ending: Committee members asked for further detail on federal/state shortage designations. The association agreed to provide maps and documentation on medically underserved areas and health professional shortage areas to committee members.
