Michigan

#HospitalFails

While nonprofit hospitals are organized as charities to deliver affordable health care to those in their communities who can’t afford it, some of America’s largest nonprofits are making large profits and charging patients high prices. Many nonprofit hospitals across Michigan are engaging in practices that are at odds with what the public expects from charitable hospitals, according to reports by PatientRightsAdvocate.org, MedicalDebtPolicyScorecard.org, and the Lown Institute.

Last updated: June 25, 2025 at 6:23am

Charity Care Spending

Michigan averaged a “fair share deficit” of $605 million dollars from 2020 to 2022, according to the Lown Institute Hospitals Index. In other words, Michigan’s nonprofit hospitals pocketed a whopping $605 million more in tax breaks than they spent on community benefits and charity care for low-income patients. In fact, the Lown Institute found that 75% of Michigan’s nonprofit hospitals averaged a fair share deficit for that period.¹

Hospital Collection Policies

Of the 20 Michigan hospitals investigated by KHN from November 2021 to December 2022, 55% had written policies allowing them to report unpaid medical bills to credit-rating agencies. 75% had policies allowing them to sue patients or take other legal actions to collect unpaid medical bills. Six hospitals’ policies even allowed them to deny nonemergency care to patients who owe the hospital money.²

Medical Debt and Consumer Protections

Michigan’s consumer protection policies for medical debt are rated as “WEAK.” For example, Michigan:

Does not prohibit medical providers from seizing patients’ bank accounts to collect a medical debt.
Does not prohibit hospitals from selling a patient’s medical debt.
Does not limit wage garnishments to a percentage of a patient’s income.
Does not require hospitals to offer a reasonable payment plan before sending a patient’s bill to collections, harming their credit.³

Price Transparency

A survey of 2,000 hospitals nationwide from July to November 2024 found that only 2 of the 53 Michigan hospitals reviewed – just 4% – had complied with federal regulations requiring all hospitals to post their prices online and make them easily accessible and searchable.⁴

The Burden of Medical Debt in Michigan

In Michigan, an average of 9% of adults in a given year (or 690,000 people) reported having medical debt, according to a Peterson-KFF analysis of data from 2019 to 2021.⁵

Hospital Overcharging

On average, from 2020 to 2022, hospitals in Michigan charged patients with private insurance an average of 188% of what they charged Medicare patients for the same services.⁶

Grade: #HospitalFail

Lown Institute, “Making Hospital Tax Breaks Work For Communities: An Analysis Of 20 States,” April 2025, https://lownhospitalsindex.org/report-making-hospital-tax-breaks-work-for-communities/
National Public Radio, “Investigation: Many U.S. hospitals sue patients for debts or threaten their credit,” December 2022, https://www.npr.org/sections/health-shots/2022/12/21/1144491711/investigation-many-u-s-hospitals-sue-patients-for-debts-or-threaten-their-credit
Innovation for Justice, University of Arizona and the University of Utah, “Medical Debt Policy Scorecard,” October 2021, https://www.medicaldebtpolicyscorecard.org/state/MI
PatientRightsAdvocate.org, “Seventh Semi-Annual Hospital Price Transparency Compliance Report,” November 2024, https://www.patientrightsadvocate.org/seventh-semi-annual-hospital-price-transparency-report-november-2024, pg. 28
Peterson-KFF Health System Tracker, “Access & Affordability: The Burden of Medical Debt in the United States,” February 2024, https://www.healthsystemtracker.org/brief/the-burden-of-medical-debt-in-the-united-states/
Rand Corporation, “Prices Paid to Hospitals by Private Health Plans: Findings from Round 5.1 of an Employer-Led Transparency Initiative,” December 2024, https://www.rand.org/pubs/research_reports/RRA1144-2-v2.html

Consumers for Quality Care (CQC) is a coalition of advocates and former policymakers working to provide a voice for patients in the health care debate as they demand better care. CQC is led by a board of directors that includes the Honorable Donna Christensen, physician and former Member of Congress; Jim Manley, former senior advisor to Senators Edward Kennedy and Harry Reid; Jason Resendez, community advocate and health care strategist; and Mary L. Smith, former CEO of the Indian Health Service.