Legislative Analysis
Phone: (517) 373-8080
RURAL HOSPITAL ACCESS POOL http://www.house.mi.gov/hfa
Senate Bill 701 (S-1) as passed by the Senate Analysis available at
Sponsor: Sen. Sam Singh http://www.legislature.mi.gov
Senate Committee: Appropriations [Discharged]
House Committee: Appropriations
Complete to 9-20-24
SUMMARY:
Senate Bill 701 would amend the Social Welfare Act, 1939 PA 280, to remove critical
access hospitals (as defined in 42 CFR 485.606) from the rural hospital access pool and to
modify the definition of a rural hospital by increasing the county population threshold from
165,000 to 195,000 and updating the federal decennial census reference to 2020.
The Social Welfare Act currently includes a statutory requirement that the Department of
Health and Human Services (DHHS) allocate no less than $26.0 million GF/GP annually
to the rural hospital access pool for distribution to sole community hospitals, critical access
hospitals, and rural hospitals to defray treatment costs for low-income individuals. The act
includes definitions and distribution structures for each type of hospital.
MCL 400.110a
FISCAL IMPACT:
This bill would not have any fiscal impact on the state or local units of government.
The modifications to the definition of a rural hospital would result in both the inclusion of
additional locations and the exclusion of some currently eligible locations. This is due to
both the inclusion of an increased county population cap of 195,000 and maintaining the
city, township, and village population cap at 15,000 while updating the federal decennial
census reference from 2010 to 2020. Hospitals that meet the definition of a “rural hospital”
located in Livingston, Muskegon, and Saginaw Counties would be included as a result of
this bill, and hospitals that used to meet the definition of a “rural hospital” located in
DeWitt Charter Township (Clinton County) and Traverse City would become ineligible
due to population growth between 2010 and 2020 (unless the hospital is classified as a sole
community hospital under federal regulations). See below for a full list of locations that
would become newly eligible under the bill.
The removal of critical access hospitals from the rural access pool would better align statute
with the current appropriations, as critical access hospitals were removed from the rural
access pool in FY 2019-20 and instead received an increase to their Medicaid-funded
outpatient reimbursement rates.
House Fiscal Agency Page 1 of 2
 Newly Eligible Population Centers under Provisions of SB 701
Livingston County Muskegon County Saginaw County
City of Brighton Blue Lake Township Albee Township
Cohoctah Township Casnovia Township Birch Run Township
Conway Township Cedar Creek Township Blumfield Township
Deerfield Township Dalton Township Brady Township
City of Fenton Egelston Township Brant Township
Handy Township Fruitland Township Bridgeport Charter Township
City of Howell Fruitport Charter Township Buena Vista Charter Township
Iosco Township Holton Township Carrollton Township
Marion Township Laketon Township Chapin Township
Oceola Township City of Montague Chesaning Township
Putnam Township Montague Township City of Frankenmuth
Tyrone Township Moorland Township Fremont Township
Unadilla Township City of Muskegon Heights James Township
City of North Muskegon Jonesfield Township
Ravenna Township Kochville Township
City of Roosevelt Park Lakefield Township
Sullivan Township Maple Grove Township
City of Whitehall Marion Township
Whitehall Township Richland Township
White River Township St. Charles Township
Spaulding Township
Swan Creek Township
Taymouth Township
Thomas Township
Tittabawassee Township
City of Zilwaukee
Zilwaukee Township
Source: U.S. Census Bureau, Population Division
Fiscal Analyst: Kent Dell
■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their
deliberations and does not constitute an official statement of legislative intent.
House Fiscal Agency SB 701 (S-1) as passed by the Senate Page 2 of 2


Statutes affected:
Substitute (S-1): 400.110
Senate Introduced Bill: 400.110
As Passed by the Senate: 400.110
As Passed by the House: 400.110
Public Act: 400.110
Senate Enrolled Bill: 400.110