Following President Donald Trump’s signing of his new spending package, dubbed the “Big Beautiful Bill,” healthcare systems across Michigan are preparing for significant changes — and potential consequences.
The law, signed on Friday, July 4, extends Trump’s 2017 tax cuts and includes more than $880 million in Medicaid cuts, sparking concern among healthcare providers. One of the loudest voices so far is Corewell Health CEO Tina Freese Decker, who sent a memo to all staff this week outlining what she calls a “seismic impact” on both patients and providers.
“The bill has a seismic impact on healthcare — both for patients and for the people who care for them,” Decker wrote.
Medicaid Cuts Could Strip Coverage from 600,000 Michiganders
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Decker estimates the changes could strip health coverage from up to 600,000 people in Michigan, impacting every community and straining hospitals that rely on Medicaid reimbursements. She emphasized that Corewell’s Medicaid insurer, Priority Health, would also be affected due to the shrinking pool of eligible patients.
“The bill cuts $1.8 billion in Michigan funding — and that’s not waste, fraud, or abuse. That’s critical compassionate care for our neighbors,” she stated.
She added that many of the services Corewell provides are supported by Medicaid, and warned the bill does not address how hospitals will be reimbursed once federal funding is slashed.
Rural Hospitals and Labor & Delivery Services at Risk
Laura Appel, Executive VP of the Michigan Health & Hospital Association, previously told 13 ON YOUR SIDE that the state’s hospitals could lose over $6 billion over the next decade due to the cuts. She raised concerns about labor and delivery services, especially in rural areas.
“It’s entirely possible that a hospital will find it difficult to keep labor and delivery services going — and ultimately close it,” Appel said.
She also noted that 25% of Michigan’s population relies on Medicaid, and that more than 50% of births at most hospitals are covered by the program.
Hospital Leaders Brace for Storm
While calling the legislation a challenge, Decker emphasized that Corewell is committed to protecting jobs and patient care, even as they face an older, sicker population and reduced funding.
“We have been preparing for the right storm, even if that storm is now approaching more quickly,” Decker noted.
She assured staff that there is still time to prepare before the bill phases in, and the health system is actively evaluating options to minimize job losses.
Republican Leaders Praise the Bill
Not all reactions were critical. Congressman Bill Huizenga (R-MI) praised the bill for targeting “waste, fraud, and abuse” in Medicaid and food stamps, saying the cuts will preserve safety net programs for those who need them most.
“The One Big Beautiful Bill will supercharge Michigan’s economy by boosting manufacturing, helping farmers, modernizing our military, and unleashing American energy,” Huizenga said.
Congressman Tom Barrett (R-MI) also celebrated the bill, calling it a huge win for Michigan and the middle class.
“This legislation will create thousands of good-paying jobs to boost our economy and invest in a brighter future for America,” Barrett said.
What’s Next?
While lawmakers debate the long-term benefits, Michigan’s hospitals are already moving into crisis-management mode. Decker’s final note to staff struck a cautiously determined tone:
“We are looking at ways to protect the most people, and to minimize the impact on jobs — something we have shown we can do through earlier challenges.”
