Oversight Committee Questions MDHHS on Psychiatric Bed Capacity and PIHP Procurement

Sep 8, 2025

Committee members pressed MDHHS Director Elizabeth Hertel about psychiatric bed shortages, the state’s preference not to expand state‑run hospitals, and fairness concerns in a pending PIHP RFP that has prompted litigation and questions about capital reserve rules.

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Representative Bierlein and other members asked Elizabeth Hertel whether Michigan has an adequate number of inpatient psychiatric beds. Hertel said there is "a fairly adequate number of inpatient psychiatric beds in the state of Michigan" but added that the state needs more psychiatric facilities, especially capacity for crisis stabilization, short‑term residential and services for people with intellectual and developmental disabilities. She said the department prefers not to expand the state’s footprint on inpatient psychiatric hospitals because the state has difficulty recruiting and retaining staff at state salary levels.

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