A new consultant's report estimates that it would take $150 million to $200 million to begin to resolve the growing healthcare crisis in Detroit. Medicaid health plan rates should be increased by at least 10%, or roughly $50 million, according to the report, issued by Health Management Associates, Lansing, Mich., which is not related to the investor-owned hospital chain of the same name. Hospital systems will need another $75 million to $100 million to return to profitability and improving the ambulatory care system will require $25 million, the consultancy said. The report was requested by the state Department of Community Health for the Detroit Health Care Stabilization Workgroup, a committee of city, county and state officials grappling with how to finance healthcare for Medicaid and uninsured patients in the absence of a public health system. Last week, Michigan Gov. Jennifer Granholm announced a $50 million bailout that halted a planned shutdown of two Detroit Medical Center hospitals and spared the layoffs of more than 1,000 employees. DMC has lost more than $400 million in the last five years and provided $130 million in charity care last year. -- by Mark Taylor
$200 million needed to fix carefor Detroit's poor patients
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