EXECUTIVE ORDER

No. 2002 - 15

HOSPITAL ADVISORY COMMISSION

DEPARTMENT OF COMMUNITY HEALTH

WHEREAS, Article V, Section 1, of the Constitution of the state of Michigan of 1963 vests the executive power in the Governor; and

WHEREAS, the health and welfare of Michigan’s citizens are of paramount importance, and the state has established a variety of effective programs to assist in meeting the health care needs of Michigan’s residents; and

WHEREAS, while these successes have been significant, the federal funding of Medicaid is currently inadequate and Medicaid is one of the largest and fastest growing components of the state budget, making it difficult, if not impossible, to increase funding for other priorities.; and

WHEREAS, it is the continuing goal of this administration to encourage our health leaders in Michigan to help achieve our most important health care objectives by volunteering their time, effort, expertise, and service; and

WHEREAS, Michigan’s hospitals have an integral role in maintaining the health of individuals served within our complex and comprehensive health care system; and

WHEREAS, the need for fiscal restraint and responsible planning are critical to the prudent management of the state’s resources in order to continue to pay for the health care needs of our most vulnerable citizens; and

NOW, THEREFORE, I, John Engler, Governor of the State of Michigan, pursuant to the powers vested in me by the Constitution of the state of Michigan of 1963 and the laws of the state of Michigan, do hereby order the establishment of the Hospital Advisory Commission and the following:

I. DEFINITIONS

A. The "Commission" means the Hospital Advisory Commission established in this Executive Order.

B. The "Department" means the Department of Community Health, the principal department of state government created by Executive Order 1996-1, being Section 330.3101 of the Michigan Compiled Laws.

II. ESTABLISHMENT OF COMMISSION

A. The Hospital Advisory Commission is established in the Department of Community Health as an advisory body.

B. The Commission shall be composed of seven (7) members who shall be appointed by the Governor, the majority of whom shall represent geographically distributed non-profit hospital systems in Michigan. The Director of the Department of Community Health and the State Budget Director shall serve as an "ex-officio," non-voting members of the Commission.

C. Except as otherwise provided in this subsection, members of the Commission shall hold office for a term of four (4) years. However, of the members initially appointed, two (2) shall hold office for a term of two (2) years, two (2) shall hold office for a term of three (3) years, and three (3) shall hold office for a term of four (4) years.

D. A vacancy on the Commission shall be filled in the same manner as the original appointment.

E. A member appointed to fill a vacancy created other than by expiration of a term shall be appointed for the unexpired term of the member who he or she succeeds in the same manner as the original appointment. A member may be reappointed for additional terms.

F. The Governor shall designate one (1) member of the Commission to serve as chairperson. This member shall serve as Chair at the pleasure of the Governor.

III. CHARGE TO THE COMMISSION

The Commission is advisory in nature and shall act as a statewide advisory body to assist the Director of the Department in assuring hospital access to health care for the uninsured, underinsured, and the Medicaid population.

A. The Commission shall advise the Director on:

1. Mechanisms to increase patient safety and reduce medical errors for hospital patients.

2.  The distribution of state Disproportionate Share Hospital funds and other federal funding for hospitals at the request of the Department Director.

3. Development of a partnership between the state and its hospitals to maximize federal funding opportunities for health care.

4. Mechanisms to promote hiring and retention of nurses and other health personnel considered in short supply.

5. Ways to secure additional funds for statewide programs, including mechanisms to increase Michigan’s share of federal Medicaid funds.

6. Mechanisms to partner with the state to reduce pharmaceutical expenses.

B.  The Commission shall report within one year of the effective date of this order to the Director on

1.  The effects of Medicare funding for hospitals and the relationship of this funding to the Medicaid program.

2. The effects of rising medical malpractice premiums in the health care industry and advise on mechanisms to reduce hospital and health care system costs and liability.

3. The basis of increased utilization trends for hospital services and recommendations on reducing inappropriate utilization of resources.

C. The Commission shall recommend to the Director:

1.  Mechanisms to allow hospitals to more effectively network with the Life Science Corridor.

2. Methods for hospitals to partner with the state in effective wellness and prevention programs.

IV. OPERATIONS OF THE COMMISSION

A. The Commission may promulgate bylaws, not inconsistent with law and with this Order, governing its organization, operation, and procedure.

B. Members of the Commission shall not delegate their responsibilities to other persons. A majority of the serving members constitutes a quorum for the transaction of business at a meeting. The Commission shall act by the majority vote of its serving members.

C. The Commission shall meet at the call of the chairperson and as may be provided in the bylaws of the commission. Meetings of the Commission may be held at any location within the state of Michigan. The Commission shall meet at least semi-annually and may meet by conference call or teleconference.

D. The Commission may, as appropriate, make inquiries, studies, investigations, hold hearings, and receive comments from the public. The Commission may consult with outside experts in order to perform its duties.

E. The Commission may establish one or more subcommittees consisting of Commission members to investigate and analyze specific issues, consistent with the charge to the Commission contained in Section III of this order. The chair of the Commission, or a member of the Commission designated by the chair, shall be a member of each subcommittee established by the Commission. Subcommittees may recommend proposed actions, plans, comments, formulas, measures, reports, or policies to the Commission, consistent with the Commission’s charge. The Commission may adopt, reject, or modify recommendations proposed by subcommittees.

F. Members of the Commission shall serve without compensation. Members of the Commission may receive reimbursement for necessary travel and expenses according to relevant statutes, rules and procedures of the Department of Management and Budget and the Civil Service Commission.

G. The Department may hire or retain such contractors, sub-contractors, advisors, consultants, and agents, and may make and enter into contracts necessary or incidental to the exercise of the performance of the Commission’s duties, as the Department Director deems appropriate. Such procurements shall be in accordance with the relevant statutes, rules, and procedures of the Department of Management and Budget and the Civil Service.

H. Subject to appropriations and other applicable law, the Commission may apply for, receive, and expend monies from a source, public or private, including but not limited to, gifts, grants, donations of monies, and government appropriations. The Commission may also accept donations of labor, services, or other things of value from any public or private agency or person.

I. Members of the Commission shall refer all legal, legislative, and media contacts to the Department.

J. The Commission shall be staffed by personnel as designated by the Director of the Department.

V. MISCELLANEOUS

A. All departments, committee, commissioners, or officers of the state or of any political subdivision thereof shall give to the commission, or to any member or representative thereof, any necessary assistance required by the commission, or any member or representative thereof in the performance of the duties of the commission so far as is compatible with its, his or her duties; free access shall also be given to any books, records, or documents in its, his or her custody, relating to matters within the scope of inquiry, study, or investigation of the Commission.

B. The invalidity of any portion of this Order shall not affect the validity of the remainder thereof.

The provisions of this Executive Order shall become effective upon filing.

Given under my hand and the Great Seal of the State of Michigan this 20th day of August, in the Year of our Lord, Two Thousand Two.

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GOVERNOR

BY THE GOVERNOR:

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SECRETARY OF STATE