Invest in higher education

Michigan is unwilling to invest in higher education, despite the indicators that an educated, creative, innovative and diverse workforce is crucial to the state's economic future: That's the message Grand Valley State University President Thomas J. Haas, who is leading the Presidents' Council of the State Universities of Michigan, brought to the West Michigan Regional Policy Conference this morning.

"I believe there is a culture of disinvestment in higher education in the state of Michigan," Haas told the West Michigan Regional Policy Conference this morning. "Is a degree a public good or just a commodity? We need to look at a degree as a public good."

Haas was joined on the "Investing in Higher Education for Michigan" panel by Ferris State University President David L. Eisler, Northwestern Michigan College President Timothy J. Nelson and Kalamazoo College President Eileen B. Wilson-Oyelaran. They spoke to business and political leaders who will be voting this afternoon on policy initiatives they would like chambers of commerce in West Michigan to pursue in Lansing.

"I think we need to look at the outcomes, the results that we desire. In a way, maybe it's time for a similar Marshall Plan for higher education, where we look at all the different parts of the system and look at what we can do together with our state leaders and others in the business community," Haas said. "In order to have an effective policy, I do think we do need to have a rational, predictable and sustainable investment policy with the state, and I think maybe those tax incentives can go along with it. All of us in higher education must be held accountable in our fiscal responsibilities. Financial aid needs to be a part of it."

Among other comments during the session:

• Private colleges in West Michigan enroll 26,500 students, or 19 percent of all local college students, Wilson-Oyelaran said. "We are intimately involved in the preparation of talent in this area," she said.
• Ferris State University's career-oriented curriculum brings the college in close contact with business through industry councils, Eisler said. "We help connect students with great careers," he said.
• Because of the lack of diversity in northern Michigan, Northwestern Michigan College, a community college in Traverse City, must search out ways to connect its homogenous student body with a diverse world to make sure students are prepared to compete in the global economy, Nelson said. "We believe the economy in this state will develop on a regional basis. The northern Michigan economy will develop differently than the West Side of the state," Nelson added.
• "When you think about internships, think more broadly than just a student who comes to work in your business or industry," Eisler said. "Think about support and advice where you become a member of one of our advisory councils, you become an extension of our university in terms of helping that student be successful in the career, and we form these partnerships that help drive our economy forward."
• "It's not just the state legislature.... All of us together in business and higher education need to come together to attract and retain our talent here," Eisler added.

After the session, Michigan State University President Lou Anna Simon and Haas announced a new program to provide a "pathway" to allow up to five GVSU pre-med students to move seamlessly into MSU's College of Human Medicine. Haas said the arrangement is similar to one he forged while working in New York.

Elizabeth Slowik, reporter

Why health care industry is sick

From underfunded Medicaid to a payment system called "perverse" by Metro Health Hospital CEO Mike Faas, health care leaders today told Regional Policy Conference attendees what is making their industry sick.

In a session moderated by Michigan State University President Lou Anna Simon, Faas was joined by Spectrum Health President & CEO Rick Breon, Mercy Health Partners President & CEO Roger Spoelman and Van Andel Institute CEO David Van Andel.

Among the topics the hospital executives identified for those voting this afternoon on policy issues: Low payments from Medicaid that cost West Michigan hospitals hundreds of millions of dollars annually; term limits that boot legislators out of office just as they are beginning to understand health care issues; workforce development, such as recruitment and training; the shortages of nurses; and a system of payment that pays providers "to do something to people, not for them," as Faas put it.

The men -- including Breon, whose organization owns Priority Health, which is one of two dominant insurers in West Michigan -- said they recognize that business owners and their employees are nearing a breaking point of affordability for health insurance. Breon said he expects that many more people in the future will be sent out into the individual insurance market. He called for a thorough "vetting" of issues on any legislative reform in the insurance market. Priority Health vigorously opposed legislation proposed last year by Blue Cross Blue Shield of Michigan to reform the individual insurance market.

"There is no plan for changing health care, and that has to change," Breon added.

Opening the session was BCBSM President & CEO Daniel J. Loepp, whose nonprofit company was a major sponsor of West Michigan's first-ever policy conference.

Additional comments from this morning's session on The Business of Health Care and Life Sciences:

"This is a taxation you've not voted for which you are paying for," Breon said of the gap between Medicaid payments and the health care costs, which are passed on to employers via premium increases.

"One of the reasons we haven't had comprehensive reform in this state is term limits," Breon added.

"We need to do more coordination of all services so we can recruit and train the medical professionals this region needs," said Spoelman. Recruitment, particularly of specialists, was a major issue in the April merger of Hackley Hospital and Mercy General Health Partners that created Mercy Health Partners, owned by Trinity Health. "We do a good job of recruitment and training, but don't do a good job of retaining."

"Without moving to universal coverage, I'm not convinced health care is going to be able to reduce costs," Faas said.

Breon defended Spectrum Health's construction binge, and said the system may spend another $700 million over the next decade. "If you look at the actual amount of premium cost associated with all the building, it's 3 percent," he said. Faas, who presided over last year's move of Metro Health Hospital from Grand Rapids to a new $160 million facility in Wyoming, agreed that health care costs are far more connected to the personnel than the bricks and mortar.

"One of the things we haven't done is raid each other's nurses in a bidding war," said Faas. They noted that the biggest bottleneck in educating more nurses is providing enough qualified instructors.

"We can make changes in Medicaid and you don't have to add one dollar to the system," Breon said. "Just look at who is the most efficient, who makes it work and copy those things."

Elizabeth Slowik, reporter