Corporate News and Events

Supreme Court Decision a Blow to Health Care Consumers

Novi, Michigan – Trinity Health today expressed its disappointment with a Michigan Supreme Court decision to bypass the state-mandated competitive bidding process for the licensing of hospital beds.

The Supreme Court in effect upheld special legislation that circumvented Michigan’s Certificate of Need (CON) law. The CON law normally determines where hospital beds are needed, and then calls for a competitive bidding process to deliver the most efficient and effective services to local communities.

In defense of the CON law, Trinity Health worked within a coalition of providers focused on what’s best for Michigan residents. The coalition included Botsford General Hospital, Covenant Medical Center, William Beaumont Hospital, and Mount Clemens General Hospital.

Trinity Health views the decision as a defeat for health care consumers, purchasers and payers, who in turn may expect higher prices, reduced access to critical health services, and unnecessary strain on a shrinking pool of qualified nurses. Detroit’s automakers also have publicly challenged the addition of hospital beds in Oakland County, saying new hospitals will drive up health care costs and lead to overcapacity.

With the exhaustion of legal recourse, Trinity Health fears that the decision may serve as the first step in dismantling Michigan’s CON law. Studies by large, national corporations have shown that state CON laws help contain health care costs through the rationalization of services.