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HB 4037

Pasco County Mosquito Control District, Pasco County

2026 Regular Session Introduced by Randy Maggard

HB 4037 proposes a statewide nonprofit health data utility, via an HIE, with strict privacy, security, consent, and interoperability requirements to enhance care coordination and p

Approved by Governor
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Bill Summary · HB 4037

Summary — HB 4037 (Public Health Code amendments: health information exchange / health data utility)

Status: Introduced (filed March 7, 2025); referred to second reading.
Subject: Amendments to the Michigan Public Health Code (MCL 333.2501 & 333.2505) and addition of new section MCL 333.2508.

Main purpose

HB 4037 directs the State (through the Department and the Management and Budget Act process) to issue a request for proposals (RFP) to select a health information exchange (HIE) to operate a statewide “health data utility.” The bill establishes minimum technical, governance, privacy, and cybersecurity requirements for the selected HIE and defines terms used in the statute.

Key provisions and requirements

  • Definitions added/clarified:

    • “Health data utility”: a system operated by the HIE that aggregates, normalizes, and facilitates exchange of disparate clinical and other health data for treatment, care coordination, quality improvement, population/public health emergencies, and community health purposes.
    • “Health information exchange”: a nonprofit entity that operates an inclusive health IT infrastructure that aggregates and shares heterogeneous health data from diverse sources.

  • RFP / selection timeline:

    • A request for proposal must be issued no later than March 1, 2026, in accordance with the Management and Budget Act.

  • Minimum contract / legal compliance:

    • The RFP and any resulting contract must require compliance with all applicable federal and Michigan laws pertaining to cybersecurity and data protection.

  • Functional and technical requirements for the selected HIE / health data utility:

    • Ability to route relevant, real‑time data statewide.
    • Support controlled access for programs that monitor public safety / population health, program adherence, and legal compliance.
    • Improve care quality by integrating public health data into electronic records and supporting clinical and social decision-making.
    • Promote interoperability among health entities and the State.
    • Provide multiple exchange modalities (queries, push notifications, etc.).
    • Advanced identity management, robust patient matching, and patient consent management that allows patients to manage consent practices.
    • Strict audit logs and role‑based access controls; ability for patients to request an accounting of disclosures and to review data access logs.
    • Maintain high cybersecurity standards (HITRUST certification or equivalent third‑party CSF-based assessment).
    • Operate as a nonprofit, Michigan‑based HIE with technical connections to a significant percentage of providers, public health agencies, and payors.
    • Patient-facing opt‑out mechanism via a clear and conspicuous process.

  • Governance:

    • Required governing board representation with expertise in public health or affiliation with DHHS, the Health Information Technology Commission, hospitals, health plans, human services organizations, physician groups, or pharmacies.

Who is affected

  • State agencies (DHHS / Department of Information Technology / Management and Budget) responsible for issuing the RFP and contracting.
  • The nonprofit health information exchange selected to operate the utility.
  • Health care providers, payors, pharmacies, laboratories, public health agencies, and programs that will connect to and rely on the utility.
  • Patients in Michigan (data use, privacy and opt‑out rights).
  • Programs that use health data for public health monitoring, safety, compliance, and care coordination.

Fiscal and policy implications

  • HB 4037 itself establishes procurement and program requirements but does not appropriate funds.
  • A companion/related bill (HB 4038) would earmark Insurance Provider Fund dollars to provide direct funding to the health data utility ($6.0M in FY 2024–25; $7.0M in FY 2025–26; $8.0M in FY 2026–27 and annually thereafter, indexed to the Detroit CPI). That funding provision was analyzed as increasing GF/GP need for the state share of Medicaid. HB 4038’s enactment and funding are separate legislative actions but are described as linked in the fiscal analysis.

Timeline / procedural notes

  • RFP deadline: no later than March 1, 2026.
  • Adds new statutory section (2508) and modifies existing Public Health Code sections (2501 and 2505) to authorize and describe the program.
  • HB 4037 has a companion Senate bill (SB 1118) and has been through committee substitution (H‑2) incorporating more specific infrastructure and audit log language.

Intended effect

To create a statewide, standards‑based, nonprofit‑operated health data utility that improves interoperability, enables public health monitoring and care coordination, and ensures strong cybersecurity, governance, and patient privacy/consent controls.

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

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