WeVote
Log In

Bill

Bill

HB 6118

Health facilities: other; certain acquisitions and mergers involving a health facility or agency; regulate. Creates new act. TIE BAR WITH: HB 6116'26, HB 6117'26

2025-2026 Regular Session Introduced by Jay DeBoyer and 1 co-sponsor

The bill requires state approval and a 12% prevention assessment for health facility consolidations, plus strict size and price safeguards to prevent reduced access or higher costs

bill electronically reproduced 06/18/2026
#businesses:other #healthfacilities:mergers #healthfacilities:other
0
WeVote Research Nonpartisan
Bill Summary · HB 6118

Summary: Health Facility Consolidation Prevention Act (HB 6118, 2025-2026, Michigan)

Purpose and intent

HB 6118 creates a new framework to regulate and potentially discourage certain health facility acquisitions and mergers in Michigan. The bill establishes an approval process, imposes a new tax (prevention assessment) on proposed consolidations, sets strict thresholds to limit market concentration, and provides remedies and enforcement mechanisms. The overarching goal is to prevent consolidation from reducing access, increasing prices, or diminishing competition in health services.

Key provisions and changes

  • Definitions and scope

    • Introduces terms like affiliate, applicant, health facility, health facility acquisition, consolidation, merger, target health facility, and prosperity region to standardize review criteria.
    • Applies to health facilities and agencies licensed under Michigan’s Public Health Code (article 17) and any health service provider operating as a health facility.

  • Approval requirements and exemptions

    • A health facility consolidation generally requires:
    • (i) approval by the Hospital Cost Review Board (the Board) under section 7, and
    • (ii) payment of the health facility consolidation prevention assessment (section 5(1)).
    • Certain consolidations are exempt from the act if:
    • A party is a health professional or owned by health professionals, and
    • The combined annual revenues of all facilities owned by each party do not exceed $5 million, and the total revenue of all facilities subject to the consolidation does not exceed $10 million (section 5(2)).

  • Board review and application process (section 7)

    • Applicants (acquirers for acquisitions; owners with the most assets for mergers) file with the Board, providing extensive governance, ownership, facility, pricing, and access information.
    • A $10,000 application fee is required, deposited into the Health Care Cost Reduction Fund.
    • The Board may grant hardship exemptions if a financially struggling facility risks closure and consolidation is the only feasible option, with owner support (section 7(3)).

  • Standards for approval (section 5 and 7)

    • Approval hinges on multiple safeguards:
    • (a) The consolidation should not push:
      • Consolidated bed count over 8% of all state beds, over 15% in any prosperity region, or consolidated market share over 3% statewide (or 15% within a region) for any health service category.
    • (b) A pledge to decrease prices at target facilities by at least 2% upon consolidation.
    • (c) A pledge not to increase prices by more than the annual CPI percentage change.
    • Hardship exemptions can modify these requirements in limited cases.

  • Financial mechanics: the prevention assessment (section 9)

    • The assessment is a tax paid before entering into a consolidation:
    • 12% of the total purchase price for purchases.
    • 12% of the combined value of the facilities involved (excluding the party with the most assets) for non-purchase consolidations.
    • The Department of Treasury administers the assessment; proceeds go to the designated fund.

  • Monitoring, information, and transparency (section 11)

    • The Board can request documents, consult experts, and hold public hearings (subject to Open Meetings Act).
    • Applicants may be required to reimburse the Board’s review costs.

  • Post-consolidation requirements (section 13)

    • Target facilities must implement price reductions and may not raise prices beyond stated commitments.

  • Enforcement and penalties (section 17)

    • Civil fines: up to 15% of the transaction value for violations of consolidation requirements; up to $10,000 per day for pricing or prohibition violations.
    • Fines go to the fund; the Attorney General may enforce remedies, including voiding a non-compliant consolidation.

  • Reporting and sunset provisions

    • Annual reporting due by March 1 to the Legislature and department, detailing expenditures, applications, hardship exemptions, and violations (with public posting on the department’s website).

  • Implementation and tie-in

    • The act takes effect only if HB 6116 and HB 6117 are enacted, indicating a broader package governing health facility regulation.

Who is affected

  • Health facility owners and operators seeking consolidations (acquisitions or mergers) in Michigan.
  • Health facilities that might be targets of consolidation.
  • Health professionals involved in facilities subject to consolidation (some exemptions consider professional ownership).
  • State agencies: Department of Licensing and Regulatory Affairs (LARA), Department of Treasury, and Health and Human Services, among others, for implementation and enforcement.

Procedural and timeline notes

  • Applications must include extensive documentation; filing requires $10,000 and eventual payment of the 12% prevention assessment.
  • Board decisions include potential hardship exemptions and are accompanied by written notices.
  • Public hearings and cost reimbursement provisions enhance transparency.
  • Annual reporting deadlines and interagency cooperation obligations are specified.

If you’d like, I can provide a section-by-section comparison with current Michigan law or a risk assessment for a hypothetical consolidation.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.