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Michigan House speaker floats price controls for hospitals

By Craig Mauger, cmauger@detroitnews.com

Michigan House Speaker Matt Hall said Friday he’s considering pursuing a new state commission or fee schedules to limit what hospitals can charge for their services, as part of a bid to lower health care costs.

The Kalamazoo County Republican made the comments during an appearance on WKAR’s “Off The Record” overtime segment while discussing his caucus’s priorities for the upcoming year. The speaker referenced the Michigan Public Service Commission, which currently gets to approve or alter rate increases proposed by gas and electric utilities that have monopolies within their service territories.

“I am looking at potentially proposing a new … public service commission, but for the hospitals, to regulate their price increases,” Hall said.

He added later, “We might need fee schedules.”

Hall’s comments came amid reports of rising health care costs nationwide and a push by some political candidates to focus on lowering medical bills and insurance premiums paid by their constituents. However, a new government panel to intervene in hospitals’ financial decision-making would represent a significant change for an industry that employs hundreds of thousands of Michigan residents.

Annual health spending in the U.S. increased by 62% from about $3 trillion in 2014 to about $4.9 trillion in 2023, according to data tracked by the Kaiser Family Foundation.

Brian Peters, CEO of the Michigan Health and Hospital Association, said Friday that his group “is always willing to engage in discussions that can improve affordability and reduce government intervention.”

“Hospitals remain committed to addressing rising healthcare costs,” Peters said. ”Insurance premiums are ultimately determined by insurance companies, not hospitals, while independent analyses show that prescription drug costs and administrative expenses are driving insurance premium inflation.”

The website of McLaren Health Care, which has 12 hospitals, describes billing, costs and charges as “very complex.”

“The price a patient sees on their hospital bill reflects not just the specific care team who treated them, but also overall operational costs that keep the hospital running 24 hours a day, 365 days a year,” the McLaren website says.

The Detroit News reported in October that Blue Cross Blue Shield of Michigan was hiking its small group insurance premiums an average of 12.4% next year for its Blue Care Network HMO plans. In the individual market, state regulators allowed Blue Cross to hike its premiums by 24%, as three insurers stopped selling so-called “Obamacare” plans in Michigan.

In an interview in October, Tricia Keith, Blue Cross’s CEO, referenced a study by the RAND Corp. that concluded hospital mergers gave the health systems more negotiating power with insurers, increased patient volume for services, reduced competition and contributed to increased health care spending.

“We are concerned with (hospital) consolidation because there are a number of studies that have come out and shown — the RAND study, for instance — that hospital consolidation does drive up prices,” Keith said.

More: Q&A: Blue Cross CEO Tricia Keith on what’s driving double-digit health insurance increases

During his public television interview on Friday, Hall said something has to be done to lower health care costs.

“We see these big Taj Mahals they’re building,” Hall said of new facilities built by Michigan hospital systems. “I’m just saying it’s out of control.”

Some hospital executives, including Henry Ford Health CEO Bob Riney, have defended new medical facilities. Henry Ford Health is currently erecting a new $2.2 billion hospital across West Grand Boulevard from its flagship Detroit hospital, where the tower dates back to 1915.

“I would ask people to think about the inefficiencies in the design of a building that was designed to be a hospital over 100 years ago,” Riney said. “… If anyone has shown a great use of a building for a hundred-plus years, it’s us.”

More: Q&A: Henry Ford Health executives defend rising costs of care, new Detroit hospital

Democrats in the Michigan Senate have approved bills to create a new state board with the power to study prescription drug costs and set maximum caps on prices if they’re determined to be too expensive for patients.

The Senate voted in favor of those bills in April, but the Republican-controlled House has not acted on them.

Sen. Darrin Camilleri, D-Trenton, said the ideas Hall floated Friday seemed somewhat similar to the Senate’s plan for the Prescription Drug Affordability Board.

“We have a great plan that’s sitting in the House chamber and that’s been sitting there for many months,” Camilleri said.

Camilleri added that Hall has continued to attack Michigan’s hospitals. In September, Hall called for the ouster of Brian Peters, the leader of the Michigan Health and Hospital Association, after the group criticized the House GOP’s budget plan.

Michigan House Speaker Matt Hall, R-Richland Township, said Friday he is toying with the idea of having a state panel set limits on what hospitals can charge for medical care in a bid to drive down the escalating cost of health care. (Daniel Mears, The Detroit News/The Detroit News/TNS)

Birmingham files lawsuit to block Community House sale

By Max Bryan, mbruan@detroitnews.com

Birmingham has filed a lawsuit in Oakland Circuit Court to block the sale of The Community House after its nonprofit operator announced plans to cease in-house operations in 2026.

The Community House Association announced Nov. 3 that operations in its 1930 building at 380 Bates St. will not be required as the association transitions into the Birmingham Area Community Foundation, which will provide scholarships for students and support for smaller area nonprofits. The association said in the announcement that the new owners of the building are “yet to be determined” but that current operations would cease July 1, 2026.

In response, the city filed a lawsuit on Nov. 25 “to enforce deed restrictions” that it alleges require the building “to be held exclusively as a community center for use by the residents.”

“(A sale) would permanently deprive the residents of the City of Birmingham of a unique civic and charitable asset intended for their benefit,” including 33 full-time and 16 part-time employees, the facility’s childcare program, event rentals and programs, the lawsuit reads.

The association executed a trust in 1930 to be held for the building and its operations. The trust prohibited a sale or transfer to a private interest if the association were to be dissolved, the lawsuit states.

In response to a 1989 petition to modernize the trust, the state required the association to hold The Community House in accordance with the 1930 trust. It required them to convey the land and any construction on the property to the city if The Community House were to be dissolved, the lawsuit states.

The city claims in its lawsuit that The Community House must be transitioned into either “a Birmingham charitable, benevolent, or educational organization” chosen by nearly all of the trustees or given back to the city to be used as a nonprofit community center.

Alison Gaudreau, president of The Community House, said that the organization communicated to the city could submit an offer for the building but “responded by filing a lawsuit.”

In a statement to The Detroit News, Gaudreau acknowledged there are “strong emotions” about The Community House’s future.

“There are many assumptions being made about what is happening with the sale of the building,” said Gaudreau in a statement. “We agree with the city that the building should be used for charitable purposes and those are the only conversations we are having with potential buyers. We are only speaking with non-profit organizations who would continue to use this space to benefit the community.”

The city asks in the lawsuit for Oakland County Circuit Court to issue an injunction between The Community House and its potential sale on grounds that it would violate deed restrictions and court orders.

“A private sale would permanently terminate the property’s nearly 100-year role as a public, nonprofit community center and would irreversibly extinguish the public’s beneficial interest, which is harm that cannot be remedied by monetary damages or subsequent litigation,” the lawsuit states.

The lawsuit was filed eight days after Birmingham Mayor Clinton Baller announced at a city commissioners’ meeting that the commission “will use each and every available means” to keep the building “a community asset.” The commission was scheduled to discuss the city’s lawsuit in closed session during its Monday meeting.

For more than a century, The Community House has hosted debates, served as a gathering place and has provided programs, events and partnerships with other nonprofits. a lawsuit on Nov. 25 “to enforce deed restrictions” that it alleges require the building “to be held exclusively as a community center for use by the residents.”

The Community House in Birmingham (Google Maps image).

Saline QB Tommy Carr switches commitment to Michigan

Saline quarterback Tommy Carr, the grandson of former Michigan coach Lloyd Carr, has switched his college commitment to the Wolverines.

He had been committed to Miami of Ohio.

Carr (6-foot-3, 195 pounds) is ranked a three-star prospect by 247Sports. He is ranked the No. 7 player overall in Michigan in 2026 and the No. 29 quarterback nationally in the 2026 recruiting class.

Saline’s run in the Michigan high school football playoffs ended Friday night with a 42-28 loss to Detroit Cass Tech in a Division 1 regional final. Carr led Saline to a 10-2 record this season, passing for 2,797 yards and 37 touchdowns

Carr is the younger brother of Notre Dame quarterback CJ Carr and the son of former Michigan QB Jason Carr.

Michigan’s 2026 recruiting class has 25 commitments and is ranked No. 10 nationally by 247Sports.

Saline quarterback Tommy Carr changed his commitment from Miami (Ohio) to Michigan on Sunday. (JOSE JUAREZ — The Detroit News)
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