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Draft bill would direct AHS to facilitate 2.5% hospital spending cut for FY26, require monthly updates and offer $2M transformation grants
Summary
The conference draft of H.126 directs AHS to facilitate hospital collaboration to reduce hospital spending for FY26 by not less than 2.5%, requires outcome-measure reporting tied to Act 167, and authorizes $2 million in grants to hospitals that engage in transformation efforts.
The conference draft of H.126 contains multiple provisions aimed at accelerating hospital transformation and tightening accountability under Act 167. Key provisions discussed in conference include a short-term target to reduce hospital spending, outcome-measure reporting tied to Act 167 goals, and a $2 million grant pool for hospitals that participate in transformation efforts.
Under section 11a as presented to the committee, the Agency of Human Services (AHS) would be directed to "facilitate collaboration and coordination among healthcare providers to... reduce hospital spending for hospital fiscal year 2026 by not less than 2.5%." The draft requires AHS to supervise participation as necessary to…
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